WPX Energy completes $2.5bn acquisition of Felix Energy

US-based energy producer WPX Energy has completed its acquisition of Delaware Basin-based operator Felix Energy.

WPX first announced this $2.5bn acquisition in December.

Felix Energy had been producing about 60,000 barrels of oil equivalent per day (boepd).

With the addition of these assets, WPX now produces more than 150,000boepd across the Delaware and Williston basins.

WPX Energy chairman and CEO Rick Muncrief said: “I want to thank the Felix team for working with us to complete the transaction a month ahead of schedule while still hitting our expectations for production at the time of closing.

“We remain absolutely convinced about the accretive nature of the transaction and the outstanding quality of these assets. They overlie a tremendous resource that clearly gives us the means for accelerating our ability to achieve our five-year targets for shareholders.”

Felix Energy financial sponsor EnCap Investments received approximately 153 million shares of WPX stock and a cash consideration of $900m.

The company also announced the addition of D Martin Philips and Douglas E Swanson Jr from EnCap Investments to its board.

Muncrief said: “We’re excited to add Marty and Doug to our board. Their considerable experience in the industry and their private equity backgrounds adds a unique perspective to WPX and how we can further create value as a company.”

Jefferies served as the financial advisor and Vinson & Elkins as legal advisor to Felix EnergyF for this deal.

In May, WPX Energy completed the sale of the Oryx II pipeline to an undisclosed buyer.

In February 2018, WPX Energy signed an agreement to divest its holdings in the San Juan Basin’s Gallup oil play to an undisclosed firm for $700m.