WPX Energy’s $2.5 Billion Acquisition Of Felix Energy

Vinson & Elkins advised Felix Energy, one of the highest quality Delaware Basin operators, in the sale of Felix to WPX Energy for $2.5 billion. Simpson Thacher represented the financing sources in the transaction.

WPX will pay $900 million in cash, subject to closing adjustments, and $1.6 billion in WPX stock. The company has obtained committed financing from Barclays in connection with the transaction and has full access to a $1.5 billion revolving credit facility.

The acquisition will allow WPX to meet its five-year plan for shareholders announced in November, said Rick Muncrief, WPX CEO and chairman. The company expects the deal to help increase its free cash flow per share, return on capital employed and cash margins.

The companies expect to close the transaction early in the second quarter of 2020.

WPX is an independent energy producer with core positions in the Permian and Williston basins. The company also has an infrastructure portfolio in the Permian Basin.

The V&E corporate team was led by partners John B. Connally (Picture), Doug McWilliams and Matt Strock with assistance from partner Danielle Patterson, senior associates Crosby Scofield and Austin March and associates Michael Zarcaro, Cesar Leyva and Jameson Miller. Also advising were partners John Lynch and Lina Dimachkieh and associate Dan Henderson; partner Sean Becker; senior associate Kristy Fields; partner Larry Nettles and senior associate Matt Dobbins; and partner Brian Moss and senior associate James Longhofer.

The Simpson Thacher team included Matthew Einbinder, Zach Banks and Daniel Lewis (Banking and Credit – Houston); Brian Rosenzweig, Brian Mathes and Rick Titcomb (Capital Markets – Houston); Kenneth Wallach and Hui Lin (Capital Markets – New York); Brad Honeycutt (M&A); and Rob Holo and Dmitry Zelik (Tax).

Involved fees earner: Zachary Banks – Simpson Thacher & Bartlett; Matthew Einbinder – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Brad Honeycutt – Simpson Thacher & Bartlett; Daniel Lewis – Simpson Thacher & Bartlett; Hui Lin – Simpson Thacher & Bartlett; Brian Mathes – Simpson Thacher & Bartlett; Brian Rosenzweig – Simpson Thacher & Bartlett; Fredrick Titcomb – Simpson Thacher & Bartlett; Kenneth Wallach – Simpson Thacher & Bartlett; Dmitry Zelik – Simpson Thacher & Bartlett; Sean Becker – Vinson & Elkins LLP; John Connally IV – Vinson & Elkins LLP; Lina Dimachkieh – Vinson & Elkins LLP; Matthew Dobbins – Vinson & Elkins LLP; Kristy Fields – Vinson & Elkins LLP; Daniel Henderson – Vinson & Elkins LLP; Cesar Leyva – Vinson & Elkins LLP; James Longhofer – Vinson & Elkins LLP; John Lynch – Vinson & Elkins LLP; Danielle Mangrum Patterson – Vinson & Elkins LLP; Austin March – Vinson & Elkins LLP; Douglas McWilliams – Vinson & Elkins LLP; Jameson Miller – Vinson & Elkins LLP; Brian Moss – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; Crosby Scofield – Vinson & Elkins LLP; Matthew Strock – Vinson & Elkins LLP; Michael Zarcaro Jr. – Vinson & Elkins LLP;

Law Firms: Simpson Thacher & Bartlett; Vinson & Elkins LLP;

Clients: Barclays Bank; Felix Energy;

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Author: Ambrogio Visconti