Deal Insight
WPX builds Permian Delaware position with US$775 million deal
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:
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