Terra Energy Partners has agreed to acquire WPX Energy Rocky Mountain, from WPX Energy for $910 million in cash. J.P. Morgan Securities, BMO Capital Markets and Wells Fargo provided an underwritten commitment for debt financing as part of the acquisition.

In addition, BMO Capital Markets acted as M&A Advisor to Terra. DLA Piper and Kirkland & Ellis LLP served as legal advisors to Terra, and Latham & Watkins LLP served as legal advisor to Warburg Pincus. Mobius Risk Group served as marketing and derivatives advisor to Terra.

As part of this transaction, Terra has secured an increased equity commitment from existing investor Kayne Private Energy Income Fund along with an equity commitment from affiliates of new investor Warburg Pincus. Terra’s aggregate equity commitment now totals $800 million, with Kayne and Warburg Pincus as equal partners.

Terra will receive natural gas hedges with a current in-the-money value of more than $90 million that will be used to support cash flow in 2016 and 2017. In exchange for these hedges, Terra has agreed to assume approximately $100 million of WPX’s future firm transportation obligations extending to 2022. The parties expect to close the transaction in the second quarter.

Founded in 2015, Terra Energy Partners is a privately held oil and natural gas exploration and production company based in Houston, TX.