WPX Completes Sale of Van Hook Gathering System
Proceeds Represent More Progress on Debt Reduction
TULSA, Okla.--(BUSINESS WIRE)--
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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Source: WPX Energy Inc