Transaction Details: 

Deal Close : March 10, 2017.  Riverstone-backed Carrier Energy announced that the company had closed on its deal with WPX.  Carrier and Panther had a JV, which was sold to WPX for $775 million.

Deal Annouced : January 12, 2017

WPX Energy has agreed to acquire assets from Panther Energy Company II, LLC and Riverstone-backed Carrier Energy Partners, LLC.

WPX plans to close the $775 million cash transaction in approximately 60 days using a combination of proceeds from an equity issuance and cash on hand.

The acquisition includes:

• ~6,500 Boe/d (55% oil) of existing production from 23 producing wells (17 horizontals), two drilled but uncompleted horizontal laterals
• 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 
• 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin.
• Projected IRR on wells ranging from 55%-95% at current strip pricing

Details

• Estimated acreage cost excluding flowing production is ~ $28,500 per acre
• Transaction valued primarily on three zones with upside in five additional zones
• EUR’s of ~ 1.0 MMBoe for Wolfcamp A and X/Y 1-mile laterals (55% oil)
• Increases WPX’s total gross drillable Delaware locations from ~5,500 to ~6,400
• New drillable locations include more than 150 long laterals (1.5-2 miles)
• Offset operators: RSP Permian, Anadarko, Shell, Matador, Cimarex, Concho and Centennial.

Including the Panther transaction, WPX has added approximately 32,000 net acres in the core of the Delaware Basin at an average cost of $18,600 per acre since its transformative purchase of RKI Exploration and Production in August 2015. The average cost excludes flowing production.

Tudor, Pickering, Holt & Co. acted as financial advisor to WPX on the Panther and Carrier bolt-on transaction.

Panther is a Tulsa-based E&P company run by Chief Executive Officer Berry Mullennix and Chief Operating Officer Roy Grossman.

Permian - Delaware Basin Deal Activity In Last 12 Months