WPX Energy Increases Hedge Position and Reduces Debt
January 20 2016 - 7:30AM
Business Wire
Company Continues to Aggressively Execute
Despite Challenging Environment
WPX Energy (NYSE: WPX) has added more hedges to protect cash
flows and repurchased a portion of notes that are due in early
2017.
Approximately three-fourths of WPX’s 2016 anticipated oil
volumes are hedged well above current prices. The company now has
29,380 barrels of oil per day hedged at $60.85 per barrel in 2016.
This includes another 2,000 bbl/d added since the company’s most
recent quarterly report.
Roughly two-thirds of WPX’s anticipated 2016 natural gas
production is hedged at $3.63 per MMBtu. For 2017, WPX has
9,304 bbl/d of oil hedged at $61.66 per barrel and 92,500 MMBtu per
day of natural gas hedged at $3.22.
Over the past two months, WPX reduced its long-term debt by
repurchasing approximately $68 million in notes – or 17 percent –
of a $400 million maturity due in early 2017 at a discount to
par. The company’s next debt maturity does not occur until
2020.
WPX has been increasing its liquidity through asset sales. WPX
exceeded its 2015 divestiture target with the previously announced
agreement to sell its San Juan Basin gathering system. WPX also
remains engaged in discussions with third parties relating to the
disposition of all or a portion of its assets in the Piceance
Basin.
“We continue to proactively manage our finances,”
stated Rick Muncrief, WPX president and chief executive
officer. “This positions us to grow our portfolio when commodity
prices rebound, especially our world-class Permian Delaware asset.
The results of our early work in the basin are exceeding our
expectations.”
Further details regarding WPX’s 2016 plans and guidance will be
provided in late February. The company’s next quarterly webcast
takes place on Feb. 25 beginning at 10 a.m. Eastern. Investors are
encouraged to access the event and the corresponding slides
at www.wpxenergy.com.
About WPX Energy, Inc.
WPX is a domestic energy producer with operations in the western
United States. The company has transformed its portfolio through
more than $4.5 billion of transactions, including the acquisition
of a considerable position in the core of the Permian’s Delaware
Basin.
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/20160120005342/en/
WPX Energy, Inc.Media Contact:Kelly Swan,
539-573-4944orInvestor Contact:David Sullivan,
539-573-9360
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