Today's selloff Today's selloff is expected, is not a cause for concern, and is not an indicator of the stock's long-term performance. A number of investors were in WPX because they were hoping for a quick liquidity event (read: buyout). A joint venture effectively eliminates a buyout, in my opinion. Therefore, investors who were looking for a short turnound time for this stock are exiting hoping to invest in some other speculative play instead. Longer term investors, who are willing to wait until 2016 or 2017 before WPX starts generating cash, will hold their shares or gradually increase their positions. Just like KRN, WPX has transformed from a 12-month speculation play to a 5-year investment.
The upshot is that all current investors will probably make more in the longer-term through the joint venture than through a buyout, assuming they can wait that long.
Personally I preferred the idea of a buyout more than a JV, but either way it's not a big deal for me as my investment timeframe in WPX is very flexible. Also, since the JV is with CNOOC and I trust their due diligence, it bolsters my faith in WPX management and the project in general. Now that a JV is announced I may reallocate around 50% of my potash investments from WPX to KRN simply for the sake of diversification, but only after a KRN pullback.