Navigate this market better. Subscribe for FREE stock alerts and information.

Tuesday, July 14, 2015

WPX Energy enters oil-rich Permian basin with $2.35 billion buy, (NYSE: WPX)

Natural gas producer WPX Energy Inc agreed to purchase privately held RKI Exploration & Production LLC for $2.35 billion, snapping up oil-rich assets in the Permian basin on the cheap amid a steep drop in crude prices.The acquisition will give WPX about 92,000 acres in Permian's Delaware Basin - spread across Texas and New Mexico - at about $12,500 per undeveloped acre.Acreage in the basin - the biggest and fastest-growing U.S. shale oil field - was worth as much as $30,000-$35,000 per acre at $100 oil, said Imperial Capital analyst Bob Christensen. WPX shares rose as much as 7 percent to $11.88 in morning trading on the New York Stock Exchange on Tuesday.

Western Potash Corp. (Western) is a Canada-based development-stage potash company. Shares of WPX traded higher by 4.991% or $0.555/share to $11.68. In the past year, the shares have traded as low as $10.01 and as high as $26.79. On average, 4296170 shares of WPX exchange hands on a given day and today's volume is recorded at 7816875.