WPX Energy Sells Powder River Basin Assets
September 01 2015 - 4:45PM
Business Wire
Quick Delevering Action Now Exceeds A Quarter
Billion Dollars
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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version on businesswire.com: http://www.businesswire.com/news/home/20150901006677/en/
WPX EnergyMedia Contact:Kelly Swan,
539-573-4944orInvestor Contact:David Sullivan,
539-573-9360
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