WPX Energy (NYSE: WPX) announced today that it has completed the sale of
its wholly owned subsidiary WPX Energy Rocky Mountain, LLC, to Terra
Energy Partners LLC for $910 million subject to closing adjustments.
The divestiture greatly enhances WPX’s liquidity, will significantly
improve its capital efficiency and returns, and lead to materially lower
general and administrative expenses going forward.
The move also solidifies WPX’s focus on the Permian Basin and balances
the company’s commodity mix. WPX expects oil to comprise approximately
half of its future production volumes, up from roughly 20 percent in
2015.
The results of WPX’s Piceance Basin operations, including associated
production volumes, will be reclassified as discontinued operations.
Piceance production volumes will not be reflected in the company’s
first-quarter 2016 financial and operations results.
WPX has a variety of options for the Piceance proceeds, including
leverage reduction, additional drilling, infrastructure investments such
as expanding its Permian gathering system, and buying out of any
retained transportation obligations.
As previously announced, WPX also closed the sale of its San Juan Basin
gathering system in March for $309 million in total consideration and
recently strengthened its liquidity by amending its revolving credit
facility. WPX received $1.2 billion of commitments on a senior secured
facility, with an initial borrowing base of $1.025 billion.
“Over the past two years, we’ve built strong credibility by doing
everything we said we’d do,” said Rick Muncrief, WPX president and CEO.
“Our portfolio today is sharper and more focused than ever before, which
is critical in the current environment. This transformation is a result
of our tenacity, long-term vision and ability to execute.”
Following more than $5 billion of transactions over the past two years,
WPX’s re-shaped portfolio boasts acreage in the core of two prolific
oil-dominant areas – the Permian’s Delaware Basin and North Dakota’s
Williston Basin – along with a leading position in the San Juan Basin.
Chief Operating Officer Clay Gaspar is scheduled to speak about WPX’s
operations at the IPAA Oil and Gas Investor Symposium on Monday, April
11, at approximately 3:40 p.m. Eastern.
Please visit www.wpxenergy.com
on the day of the conference to confirm the time, see the slides and
listen to Gaspar’s presentation.
About WPX Energy, Inc.
WPX is an oil-focused energy company with operations in the Permian’s
Delaware Basin, the Williston Basin and the San Juan Basin. The company
has reshaped its holdings through more than $5 billion of transactions
and posted double-digit oil volume growth in each of the past four years.
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the
control of the company. Statements regarding future drilling and
production are subject to all of the risks and uncertainties normally
incident to the exploration for and development and production of oil
and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks;
environmental risks; and political or regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by WPX Energy
on its website or otherwise. WPX Energy does not undertake and
expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our
filings with the Securities and Exchange Commission, available from us
at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa,
Okla., 74102, or from the SEC’s website at www.sec.gov.
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