WPX Energy To Acquire RKI Exploration & Production - Quick Facts

(RTTNews) - WPX Energy (WPX) announced a definitive merger agreement to acquire privately held RKI Exploration & Production, LLC for $2.35 billion plus the assumption of $400 million of debt. WPX Energy said the acquisition will increase its drilling inventory in oil basins to approximately 4,600 locations.

The company said 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.

RKI unit holders will receive 40 million shares of WPX stock, valued at approximately $470 million based on the terms of the agreement. WPX intends to fund the balance of the deal through a combination of long-term debt, additional equity and cash on hand.

The majority of RKI's leasehold is located in Loving County, Texas, and Eddy County, N.M., where the company has four rigs deployed. WPX plans to retain RKI staff upon closing. The companies expect to complete the transaction by the end of the third-quarter 2015.