Quick Delevering Action Now Exceeds A Quarter Billion Dollars
TULSA, Okla.--(BUSINESS WIRE)--
WPX Energy (NYSE: WPX) has completed the divestiture of its remaining
mature coalbed methane properties in Wyoming’s Powder River Basin and
scheduled a related sale of its membership interest in Fort Union Gas
Gathering L.L.C. to close in November.
The buyer is Moriah Powder River L.L.C. The sales price for the assets
is $80 million. Divesting the Powder River Basin operations further
sharpens WPX’s portfolio and supports the company’s delevering plan
following its acquisition of Permian Basin assets on Aug. 17.
Yesterday, WPX also announced that it has signed an agreement to sell a
North Dakota gathering system for approximately $185 million, which is
expected to close in the fourth quarter.
Combined, the asset sales place WPX more than half of the way toward its
2015 goal targeting $400-$500 million in divestitures by the end of the
year.
“We will remain diligent in our debt reduction efforts,” said Rick
Muncrief, WPX president and chief executive officer.
Results from WPX’s Powder River Basin assets in Wyoming were classified
as discontinued operations prior to the divestiture. WPX has not
actively drilled in the basin since 2011.
WPX also is targeting another $400-$500 million in asset sales in 2016.
Other portfolio rationalization opportunities include the monetization
of additional midstream infrastructure, non-operated properties or other
asset sales, along with evaluating creative options to unlock Piceance
Basin value.
About WPX Energy, Inc.
WPX is a domestic energy producer with operations in the western United
States. The company has reported double-digit oil volume growth in each
of the past three years and operates more than 5,000 natural gas wells.
WPX is reshaping its portfolio through more than $4 billion of
acquisitions and divestitures.
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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Source: WPX Energy Inc