Deal Insight

WPX builds Permian Delaware position with US$775 million deal

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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.

What's included

This report contains

  • Document

    WPX builds Permian Delaware position with US$775 million deal

    PDF 1.41 MB

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:

Tables

  • Executive summary: Table 1
  • 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

Images

  • WPX Delaware acquisitions and operated wells

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