The divestiture accelerates WPX’s stated deleveraging efforts, with a significant portion of the proceeds slated for debt reduction. WPX now believes it can reduce its net debt/EBITDAX to a target level of 1.5x during 2019.
The transaction completes WPX’s exit from the
In addition to the
The purchaser of the Gallup assets also is assuming the associated
transportation commitments. Upon closing, WPX will not have any future
commercial obligations in the
“WPX is now completely focused on our outstanding assets in the top two
oil-prone basins in North America– the Permian’s
“Our bias for action has completely reshaped our story and our outlook, evidenced by the positive trends in our financial results. WPX is opportunistic, disciplined and committed to a strong balance sheet, ample liquidity and ongoing value creation,” Muncrief added.
On a pro forma basis, WPX’s production is approximately 80 percent
liquids (oil and NGL) and 20 percent natural gas. Five years ago, it was
the opposite at 80 percent gas and 20 percent liquids. WPX has
aggressively transformed its portfolio through nearly
Gallup production from last year will be reflected in continuing
operations for fourth-quarter 2017 and full-year 2017 results.
With the Gallup sale, WPX is revising its 2018 volume guidance. WPX is
now forecasting 75-80 Mbbl/d of oil and 117-126 Mboe/d of production in
2018 following the Gallup sale. Further guidance can be found in a presentation
WPX’s original 2018 capital budget of
Gallup oil production averaged 10.8 Mbbl/d in third-quarter 2017. Overall, the Gallup position represented less than 5 percent of WPX’s gross undeveloped locations.
CIBC Griffis & Small provided advisory services to WPX for the
WPX is an independent energy producer with core positions in the Permian
and Williston basins. WPX’s production is approximately 80 percent
oil/liquids and 20 percent natural gas. The company also has an emerging
infrastructure portfolio in the
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
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.
WPX Energy, Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360