Current WRD Stock Info

$625 million Eagle Ford acreage acquisition makes WildHorse the second largest Eagle Ford player—for one fifth the price of Permian acreage
WildHorse Resource Development (ticker: WRD) today announced the purchase of 111,000 net acres in the Eagle Ford from Anadarko Petroleum (ticker: APC) and Kohlberg Kravis Roberts & Co (ticker: KKR).

In total WildHorse will pay $625 million for these properties. The deal is to be paid with $556 million cash to Anadarko and 6.3 million shares of WRD common stock to KKR.
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Analyst Commentary

From Capital One:
• Neutral quarter overall. Negative headline misses on EPS, CFPS, EBITDA, and production, offset by positive well results and a 4% bump to production guidance driven by well performance. WRD also announced a large East Eagle Ford acquisition this morning that will make the company the 2nd largest acreage holder in the play at what looks like a reasonable purchase price. The 23 Gen3 completions online to date are tracking a 101 boe/foot EUR type curve, 11% above the company’s existing 91 boe/foot EUR. Several of the Gen3 wells from last year are tracking 135 boe/foot EURs. This March, the Paul 134 #2H was WRD’s first Burleson North well, which, when normalized to a 6,500’ lateral and for downtime, had an IP-30 rate of 1,321 boe/d (93% oil).
• Acquisition: More important than the quarter, Wildhorse announced the acquisition of 111K net acres offsetting its existing 280K net acre position in the eastern portion of the Eagle Ford. The sellers were Anadarko and affiliates of KKR. Production during 4Q16 averaged 7.6 Mboe/d from the acquired acreage with a 72% oil cut. Backing out the value of the production (assuming $40K per barrel per day) implies a $3,300 per acre cost for the deal.
• Financing: To finance the $625MM purchase, 6.3MM shares of WRD will go to KKR. To fund the $556MM to Anadarko, there will be $435MM of perpetual convertible preferred shares issued and $121MM of borrowings from the credit facility.  

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