WPX Energy has signed a strategic partnership with Howard Energy Partners to jointly develop oil gathering and natural gas processing infrastructure in the Stateline area of the Permian’s Delaware Basin.
The joint venture with Howard is designed to support WPX’s drilling operations in the Stateline area, representing 50,000 net acres, or 37% of WPX’s roughly 135,000 net acre position in the Delaware.
The joint venture includes crude oil gathering assets already under construction and a planned natural gas processing complex.
In this 50/50 joint venture, Howard Energy Partners will finish constructing the JV assets and serve as operator. Dedication of 50,000 acres represents 37% of WPX’s total acreage in the Delaware. WPX will receive USD 300M upfront from Howard Energy Partners. Howard Energy Partners will fund the first USD 263M of JV capital expenditures, including a USD 132M carry for WPX. There is no minimum volume or drilling commitments.