Today WPX Energy announced the closure of its newest acquisition, RKI Exploration & Production LLC, stating that the acquisition will allow WPX to solidify “a substantial presence in the core of the Permian’s Delaware Basin.”
The company’s newly-acquired assets in the Permian Basin, a shale play that’s been topping U.S. rig counts, include 22,000 barrels of equivalent per day, 92,000 net acres, 3,600 gross risked drilling locations and more than 375 miles of scalable gas gathering and water infrastructure.
“This is a defining moment for our company,” WPX President and CEO Rick Muncrief said in a press release. “This transaction drives out high-margin oil growth, accelerates our portfolio transition to more liquids, and solidifies our premier position in the western United States. These areas enjoy significant advantages of established infrastructure, which provides the opportunity for stronger realized commodity prices.”
The Permian assets acquired from RKI will increase WPX’s total proved liquid reserves by 33 percent as of 2014’s end, landing WPX an estimated resource potential of 1.1 billion barrels of oil equivalent from the Basin.
The newest acquisition will drive up the total amount WPX spent on purchases to $4 billion between 2014 and 2015.
“We have accomplished a tremendous amount in the past year,” Muncrief said. “We will build on that track record by quickly delivering and reestablishing the strength of our balance sheet.”