WPX Energy to buy Felix Energy for $2.5bn
US oil and gas producer WPX Energy has agreed to buy Delaware Basin operator Felix Energy in a $2.5bn cash and stock deal.
WPX Energy Inc
n/a
20:55 06/01/25
Under the terms of the acquisition, WPX will pay $900m in cash and $1.6bn in shares for Felix. WPX said it plans to implement a dividend post-closing, targeting about $0.10 per share on an annualised basis.
WPX expects the deal, due to close in the second quarter of next year, to generate "significant" free cash flow in 2020 at $50 oil. Following the acquisition, cash flow per share, earnings per share, free cash flow per share, return on capital employed, and cash margins are all expected to increase.
WPX said the deal was consistent with all the tenets in its five-year vision for shareholders, outlined in the company’s third-quarter results.
Rick Muncrief, chairman and chief executive of WPX, said: "Meeting the five-year targets we communicated is the absolute standard and benchmark for any investment we make.
"Now we can accomplish these objectives for shareholders more quickly and efficiently with the irrefutable benefits of the Felix transaction. Delivering on our plan ahead of schedule in a highly de-risked, leverage-neutral manner is consistent with our opportunistic approach."