WPX Energy Inc (NYSE:WPX) has priced a public offering of 45 million shares of its common stock for gross proceeds of approximately $600.8 million. As per this offering, WPX has given the underwriters a 30-day alternative to buy up to an additional 6.675 million shares of company’s common stock. The offering scale was increased from the previously reported offering of 42 million shares of common stock with an alternative to buy up to an additional 6.3 million shares.
The underwriters plan to offer the shares on regular intervals for sale on the NYSE, in the OTC market, through negotiated deals or otherwise at market prices current at the time of sale, at prices linked to prevalent market prices or at discussed prices. The offering is projected to close on or around January 19, 2017, dependent on customary closing conditions.
WPX plans to use the net proceeds and cash on hand to support the acquisition of certain resources of CP2 Operating LLC and Panther Energy Company II, LLC and to pay related expenses and fees. The closure of the offering is not reliant upon the acquisition, and if it is not consummated, the company would utilize the net proceeds from the respective offering for general corporate purposes or working capital needs.
WPX Energy reported that it has agreed to buy assets that would extends its Permian businesses to over 120,000 net acres and excavate its drilling inventory of premier Delaware locations while improving major financial metrics and margin expansion.
This acquisition comprises almost 6,500 Boe/d of existing production from 17 horizontals, two drilled but not completed horizontal laterals, 920 gross undeveloped sites in the geologic sweet area of the Delaware Basin and 18,100 net acres in Loving, Reeves, Ward and Winkler counties in Texas. WPX projects the acquisition to be straightaway accretive and quicken its deleveraging development without increasing its anticipated 2017 capital outspend.