Deal Insight
WPX builds Permian Delaware position with US$775 million deal
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
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.
Table of contents
- Executive summary
- Transaction details
- Upstream assets
- Deal analysis
- Upsides and risks
- Strategic rationale
- Oil & gas pricing and assumptions
Tables and charts
This report includes 9 images and tables including:
- Executive summary: Table 1
- WPX Delaware acquisitions and operated wells
- Upstream assets: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Deal analysis: Table 4
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
What's included
This report contains:
Other reports you may be interested in
Insight
US Lower 48 upstream M&A: updated metrics and deal watchlist
12 marketed, rumored or upcoming deal opportunities
$1,350
Insight
US upstream week in brief: Q2 2024 archive
The US week in brief highlights the need-to-know current events from US upstream. Stories are supplemented with proprietary Woodmac views.
$1,350
Insight
US upstream in brief: Permian water disposal challenges swell
The US week in brief highlights the need-to-know current events from US upstream. Stories are supplemented with proprietary WoodMac views.
$1,350
