WPX Energy Announces Plan to Form Master Limited Partnership
- WPX Energy Partners, L.P. to Hold Working Interests in Mature, Producing Natural Gas Properties Located in the Piceance Basin of Colorado
- Common Units Representing Limited Partner Interests in the MLP to be Offered to the Public in Initial Public Offering
- Formation of MLP and Offering to the Public Expected to Occur in the First Half of 2014
TULSA, Okla. – WPX Energy, Inc. (NYSE:WPX) (“WPX Energy” or the “Company”) announced today that it intends to form a master limited partnership, or “MLP,” in the first half of 2014 and to offer to the public common units representing limited partner units in the MLP, which will hold working interests in mature, producing natural gas properties located in the Piceance Basin in Colorado.
The MLP, to be called WPX Energy Partners, L.P., expects to file a registration statement with the U.S. Securities and Exchange Commission in early 2014 for an initial public offering of the common units. The Company expects to initially contribute to the MLP mature, producing natural gas properties located in the Piceance Basin of Colorado.
Subject to final board approval and favorable market conditions, WPX Energy expects to sell interests in the MLP in the initial public offering. Proceeds from the offering are expected to be used to fund ongoing operations, repay debt under the Company’s revolving credit facility and for general corporate purposes. Additional details will be included in the registration statement.
There can be no assurance that an initial public offering of the MLP or any other transaction will occur. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About WPX Energy, Inc.
WPX Energy is an exploration and production company focused on developing its significant oil and gas reserves, particularly in the Piceance, Williston and Appalachian basins. WPX also has domestic operations in the San Juan and Powder River basins, as well as a 69 percent interest in Apco Oil and Gas International. Go to http://www.wpxenergy.com/investors.aspx to join our e-mail list.
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Some of the statements included in this press release constitute “forward-looking statements” (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Such forward-looking statements are based on management’s beliefs and assumptions and on information currently available. You should not put undue reliance on any forward-looking statements. Forward-looking statements include all statements that are not historical facts and may be identified by the use of forward-looking terminology such as the words “believe,” “expects,” “plan,” “project,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “will,” “should” or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and assumptions.
Risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements include economic, business, competitive and/or regulatory factors affecting the Company’s business, as well as uncertainties related to the outcomes of pending or future litigation, legislation, or regulatory actions. Among such risks are: changes in timing or structure of the planned MLP; unanticipated developments that may delay or negatively affect the planned MLP; regulatory approvals and compliance with contractual obligations; impact of the planned MLP on the Company’s relationships with its employees, customers and vendors and the Company’s credit rating and cost of funds; changes in market conditions; and future opportunities that the Company’s board of directors may determine present greater potential value to shareholders than the planned MLP. No assurance can be given as to the value of the common units of the planned MLP, the price at which they may trade or whether a liquid market may develop for such units. Unpredictable or unknown factors not discussed in this release could also have material adverse effects on forward-looking statements.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, WPX Energy has included in its filings with the Securities and Exchange Commission cautionary language identifying important factors (but not necessarily all important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by WPX Energy. For more information concerning these factors, see WPX Energy’s Securities and Exchange Commission filings. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. WPX Energy does not have any intention or obligation to update any forward-looking statement (or its associated cautionary language), whether as a result of new information or future events, after the date of this press release, except as required by applicable law.