WPX Completes Exit of International Interests
TULSA, Okla.--(BUSINESS WIRE)--
WPX Energy (NYSE:WPX) announced today that it has completed the
disposition of its international interests upon the successful merger of
Apco Oil and Gas International (NASDAQ:APAGF) with a subsidiary of
privately held Pluspetrol Resources Corporation. WPX is receiving
approximately $294 million.
In the merger, all of the outstanding equity interests of Apco,
including the shares comprising WPX’s 69 percent controlling equity
interest in Apco, were cancelled and converted into the right to receive
$14.50 per share.
In connection with its acquisition of Apco, Pluspetrol also acquired
WPX’s additional non-material Argentina-related assets.
Together, these non-operated, international holdings comprised 6 percent
of WPX’s third-quarter 2014 production volumes from continuing
operations and 3 percent of the company’s 2013 year-end proved reserves.
“We continue to execute, strengthen our financial position and implement
our long-term strategy,” said WPX President and Chief Executive Officer
Rick Muncrief. “WPX is solely focused now on domestic oil and natural
BofA Merrill Lynch acted as WPX’s exclusive financial advisor in
connection with this transaction.
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