WPX Is in Talks to Buy Felix Assets For $2.5 Billion

(Bloomberg) -- WPX Energy Inc. is in talks to buy the oil and gas exploration assets of closely held Felix Energy for about $2.5 billion, according to people familiar with the matter.

WPX Energy could announce a deal with Denver-based Felix Energy later this month, said one of the people, who asked to not be identified because the matter isn’t public. No final decision has been made and talks could fall through, the people said.

Felix Energy, which is backed by private equity firm EnCap Investments LP, operates in the Delaware Basin, a fast-developing portion of the massive Permian Basin in West Texas and New Mexico, according to its website. The deal won’t include Felix’s pipeline assets, which are being sold separately, the people said.

Representatives for WPX Energy and Felix Energy didn’t respond to requests for comment. A representative for EnCap declined to comment.

WPX Energy’s shares closed down 2.2% to $10.91 in New York trading Friday, giving the company a market value of about $4.55 billion. The stock fell 5.1% more in after-hours trading.

©2019 Bloomberg L.P.

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