On 12 January 2017, WPX announced the acquisition of Delaware Permian assets from Panther Energy and Carrier Energy for US$775 million. The deal includes approximately 18,100 net acres in Reeves, Loving, Ward and Winkler counties. Current production across the upstream assets includes approximately 6,500 net boe/d (55% oil) from 23 wells (17 horizontal). The consideration implies an adjusted acreage price of US$28,500/acre (assuming US$40,000 per flowing boe/d), which falls in the higher end of the range of recent Delaware Basin deals. We model our Reeves Core acreage at roughly US$32,000 per acre with breakevens under US$40/bbl. However, this area represents less than half of WPX's acquired acreage. The acquired acreage outside of Reeves county is largely untapped.