WPX Begins Delevering with Sale of Van Hook Gathering System
$185 Million Transaction Part of Plan Targeting $400-$500 Million in
Divestitures by Year-End
TULSA, Okla.--(BUSINESS WIRE)--
WPX Energy (NYSE: WPX) announced today that it has agreed to sell 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 parties expect to close the transaction in approximately 60 days.
The sale is part of WPX’s delevering plan targeting $400-$500 million in
divestitures by the end of 2015. WPX also is targeting another $400-$500
million in asset sales in 2016.
WPX is working to quickly reduce debt just two weeks after closing a
transformative acquisition that added decades of drilling inventory in
the core of the Permian’s Delaware Basin.
“We are aggressively moving on our delevering plan just as we said we
would do,” stated Rick Muncrief, WPX president and chief executive
The sale of the North Dakota asset consists of an oil, natural gas and
water gathering system. WPX previously installed the infrastructure
coinciding with its drilling program in the Williston Basin.
Under the terms of the agreement, WPX will continue to operate the
system which currently gathers approximately 11,000 barrels per day of
oil, approximately 6,500 Mcf/d of natural gas, approximately 5,000
barrels per day of water, and can be expanded. The system supports WPX's
development in the Van Hook peninsula area.
WPX produced an average of 22,600 barrels per day of oil in the
Williston Basin during second-quarter 2015, up 20 percent from the same
period a year ago.
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
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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Source: WPX Energy Inc