New Agreement Exceeds $200 Million; Follows $300 Million Completed
Sale
TULSA, Okla.--(BUSINESS WIRE)--
WPX Energy (NYSE: WPX) announced today it signed an agreement to sell a
package of Marcellus Shale marketing contracts and release certain
related firm transportation capacity to an undisclosed buyer for in
excess of $200 million cash.
The sale includes various long-term natural gas purchase and sales
agreements, along with 135 million Btu per day of firm transportation
capacity on Transco’s Northeast Supply Link project.
This is WPX’s second transaction monetizing its holdings in the
Marcellus Shale. Earlier this year, WPX completed a $300 million sale of
its Northeast Pennsylvania assets.
“Unwinding noncore positions in an attractive fashion increases our
financial flexibility and is further proof of our solid execution,” said
Rick Muncrief
, president and chief executive officer.
“Our team continues to be opportunistic, build our balance sheet
strength and act quickly, decisively and creatively,” Muncrief added.
The parties expect to close the transaction in the second quarter,
subject to regulatory approval and typical closing conditions.
Upon completing the transaction, WPX will be released from various
long-term natural gas purchase and sales obligations and approximately
$390 million in future demand payment obligations associated with the
transport position.
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.
Over the past year, WPX has initiated more than $1 billion in
transactions to reshape the company’s holdings and further strengthen
its balance sheet.
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.
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