WPX Completes Sale of Van Hook Gathering System
November 19 2015 - 11:58AM
Business Wire
Proceeds Represent More Progress on Debt
Reduction
WPX Energy (NYSE: WPX) announced today that it has completed the
sale of a North Dakota gathering system for approximately $185
million to a private equity fund managed by the Ares EIF Group, a
subsidiary of Ares Management, L.P. (NYSE: ARES).
The sale is part of WPX’s deleveraging plan targeting $400-$500
million in divestitures by the end of 2015. WPX also recently
completed an $80 million sale of its coalbed methane properties in
Wyoming.
WPX is working to reduce debt from a transformative acquisition
in August that added decades of drilling inventory in the core of
the Permian’s Delaware Basin.
The company also has processes under way to market a San
Juan Basin gathering system and to evaluate opportunities for
accelerating value in the Piceance Basin.
“We are fully engaged in debt reduction efforts,”
stated Rick Muncrief, WPX president and chief executive
officer. “Our ability to move quickly and decisively is one of our
strengths.”
The sale of the North Dakota asset consists of an oil, natural
gas and water gathering system. Under the terms of the agreement,
WPX will continue to operate the system which supports its
development in the Van Hook peninsula in the basin.
The system can be expanded and will be managed on behalf of Ares
EIF Group by an affiliate of MCP Asset Development Group.
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 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/20151119006257/en/
WPX Energy, Inc.Media Contact:Kelly Swan,
539-573-4944orInvestor Contact:David Sullivan,
539-573-9360
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