Why WPX Energy's Stock Is Surging Today
Shares of WPX Energy (NYSE: WPX) rallied more than 10% by 2 p.m. EST on Monday. Fueling the energy stock was its plan to acquire privately held Felix Energy as well as initiate a dividend.
WPX Energy sealed a deal to buy Felix Energy from the private equity company that founded it for $2.5 billion in cash and stock. WPX will issue 153 million shares to EnCap Investments, currently valued at $1.6 billion. It will pay an additional $900 million in cash, which it expects to finance through new debt, though it does have $1.5 billion available to it on its credit facility.
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Source Fool.com
