WPX Energy (WPX) has completed its third divestiture of the year, closing the sale of a package of Marcellus Shale marketing contracts and the release of certain related firm transportation capacity to an undisclosed buyer.
WPX received in excess of $200 million cash for various long-term natural gas purchase and sales agreements and was released from approximately $390 million in future demand payment obligations associated with 135 million Btu per day of firm transportation capacity on Transco’s Northeast Supply Link project.
WPX has been active on the acquisitions and divestiture front, reaching more than $1.5 billion in transactions over the past 12 months that increased the company’s financial flexibility.
During first-quarter 2015, WPX used proceeds from sales to repay prior borrowings on its $1.5 billion senior unsecured credit facility and reduce its long-term debt by 12 percent.
“We’re very pleased with the rapid closing of this previously announced agreement,” says Rick Muncrief, president and chief executive officer. “Once again, our team continues to deliver value for our shareholders.”
WPX intends to exit the Marcellus Shale as it focuses its portfolio on oil and gas properties in the western United States.
WPX’s only remaining assets in the Marcellus Shale primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania. These assets remain targeted for divestiture.
Earlier this year, WPX also monetized additional Marcellus Shale holdings in Northeast Pennsylvania and completed the exit of its international interests in Argentina and Colombia.
About WPX Energy, Inc.
WPX Energy develops and operates oil and gas producing properties in North Dakota, New Mexico and Colorado. The company has a long history of innovation and stakeholder engagement, recognized through more than 40 local, state, federal and industry awards.