Simplifying Portfolio Part of Company’s Long-Term Strategy
TULSA, Okla.--(BUSINESS WIRE)--
WPX Energy (NYSE:WPX) announced today that it expects to receive
approximately $294 million for its international interests subject to
the successful consummation of the definitive merger agreement entered
into between privately held Pluspetrol Resources Corporation and Apco
Oil and Gas International (NASDAQ:APAGF).
WPX’s international interests include a 69 percent controlling equity
interest in Apco Oil and Gas International and additional non-material
assets in wholly-owned Northwest Argentina and a 5 percent interest in
Apco Argentina.
Together, these non-operated, international holdings comprised 4 percent
of WPX’s second-quarter 2014 total production volumes and 3 percent of
the company’s 2013 year-end proved reserves.
“A series of significant transactions this year are shaping a
transformed and more focused WPX,” said President and Chief Executive
Officer Rick Muncrief. “We are moving value forward, monetizing non-core
assets and simplifying our business scope. All of these actions are
clearing the runway for our long-term plans.”
WPX is hosting a webcast on Thursday, Oct. 9, at 10 a.m. Eastern to
discuss its multi-year business strategy. Participants are encouraged to
access the webcast and slides at www.wpxenergy.com.
The slide presentation will be made available post-market on the day
prior to the event.
Already this year, WPX has completed the sale of working interests in
some of its mature gas wells drilled prior to 2009 for $355 million,
announced the sale of its Wyoming coalbed methane properties, bolstered
its acreage in San Juan Basin oil, and taken on a partner to accelerate
drilling in the Piceance Basin’s Trail Ridge field.
“We expect to execute,” said Muncrief. “We have a bias for action and
we’re going to keep taking a pro-active approach to value creation.”
Apco’s board unanimously approved the merger agreement with Pluspetrol
subject to shareholder approval. WPX has executed a power of attorney to
vote in favor of the adoption of the merger agreement unless the merger
agreement is terminated prior to shareholder approval. BofA Merrill
Lynch acted as WPX’s exclusive financial advisor in connection with this
transaction.
About WPX Energy, Inc.
WPX Energy is an independent exploration and production company formed
during a spinoff two years ago. Overall, WPX has more than 30 years of
experience in its sector along with 40 local, state and federal awards
for efficiency, innovation and corporate social responsibility.
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.
Additionally, the SEC requires oil and gas companies, in filings made
with the SEC, to disclose proved reserves, which are those quantities of
oil and gas, which, by analysis of geoscience and engineering data, can
be estimated with reasonable certainty to be economically producible –
from a given date forward, from known reservoirs, under existing
economic conditions, operating methods, and governmental regulations.
The SEC permits the optional disclosure of probable and possible
reserves. From time to time, we elect to use “probable” reserves and
“possible” reserves, excluding their valuation. The SEC defines
“probable” reserves as “those additional reserves that are less certain
to be recovered than proved reserves but which, together with proved
reserves, are as likely as not to be recovered.” The SEC defines
“possible” reserves as “those additional reserves that are less certain
to be recovered than probable reserves.” The Company has applied these
definitions in estimating probable and possible reserves. Statements of
reserves are only estimates and may not correspond to the ultimate
quantities of oil and gas recovered. Any reserve estimates provided in
this presentation that are not specifically designated as being
estimates of proved reserves may include estimated reserves not
necessarily calculated in accordance with, or contemplated by, the SEC‘s
reserves reporting guidelines. Investors are urged to consider closely
the disclosure in our SEC filings that may be accessed through the SEC’s
website at www.sec.gov.
The SEC’s rules prohibit us from filing resource estimates. Our
resource estimations include estimates of hydrocarbon quantities for (i)
new areas for which we do not have sufficient information to date to
classify as proved, probable or even possible reserves, (ii) other areas
to take into account the low level of certainty of recovery of the
resources and (iii) uneconomic proved, probable or possible reserves.
Resource estimates do not take into account the certainty of resource
recovery and are therefore not indicative of the expected future
recovery and should not be relied upon. Resource estimates might never
be recovered and are contingent on exploration success, technical
improvements in drilling access, commerciality and other factors.
Source: WPX Energy, Inc