Chart of the Week: WPX Energy and Howard Energy Form Joint Venture
WPX Energy and Howard Energy’s joint venture
On June 13, WPX Energy (WPX) announced that it signed an agreement with Howard Energy Partners to form a JV (joint venture). The 50-50 joint venture will support 37%, or 50,000 net acres, of WPX’s drilling operations in the Delaware Basin and will include crude oil gathering assets already under construction and a planned natural gas processing complex.
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WPX will receive $300 million from Howard Energy Partners as a part of the deal, and Howard Energy will fund the first $263 million of the JV’s capital expenditure.
The JV includes no minimum volume or drilling commitments. WPX’s press release noted the following: “The joint venture will complete the buildout of a new crude oil (DBO) (OIIL) gathering system, already started by WPX in the basin, and begin constructing a new cryogenic natural gas processing complex with a planned initial capacity of 400 MMcfd.”