Current WPX Stock Info

WPX Establishes Fourth Core Area
Wells Provide 30% Return at $60/barrel
WPX Energy (ticker: WPX) is moving into the most prolific oil play in the United States.

On July 14, 2015, the Tulsa-based company announced the acquisition of privately held RKI Exploration & Production, LLC for $2.75 billion (including $0.4 billion of debt). In return, WPX receives 92,000 net acres (98% held by production) in the Delaware Basin on the New Mexico-Texas border. The properties include 22,000 BOEPD of existing production, 3,600 gross risked drilling ...

Acquisition Metrics

The acquisition metrics include approximately $1.1 billion for the existing production at $50,000 per flowing barrel, approximately $500 million for the established midstream infrastructure, which equates to an average of $12,500 per acre – or $1.15 billion – for the undeveloped locations.

Muncrief: “We believe the total net recoverable resource potential at more than 1.1 billion barrels of oil equivalent; less than 10% of that is currently developed thus far. Thus, this acquisition results in adding high quality assets at an attractive $2.50 per Boe.”  

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