In accordance with NYSE Rule 303A.08, WPX Energy (NYSE:WPX) today
announced that it has granted an employment inducement award in the form
of restricted stock units to Richard E. Muncrief who has been named as
the company’s president and chief executive officer.
The inducement grant for restricted stock units provides for the
issuance of 481,157 shares of WPX’s common stock, subject to vesting
conditions.
Forty-percent of the inducement grant is comprised of time-based
restricted stock units that will vest one year after the effective date,
May 15, 2014, provided that Mr. Muncrief remains an active employee of
the company on such date.
Sixty-percent of the inducement grant is comprised of performance-based
restricted stock units. Half of these restricted stock units will vest
if, at any time between the effective date and a date that is three
years after the effective date, the closing price of WPX common stock on
the NYSE is equal to or exceeds 115 percent of $21.01 for 20 consecutive
trading days. The remaining half of the performance-based shares will
vest if, at any time during the performance period, the closing price
equals or exceeds 130 percent of $21.01 for 20 consecutive trading days.
Vested shares of common stock, if any, will be issued to Mr. Muncrief on
the applicable vesting date, but in no event earlier than the second
anniversary of the effective date. The performance-based restricted
stock units will expire after three years if vesting conditions are not
achieved.
For each restricted stock unit that vests, Mr. Muncrief shall have the
right to receive one share of the company’s common stock. The restricted
stock units contain certain acceleration provisions in the event of a
change in control. Mr. Muncrief would forfeit unvested restricted stock
units under certain circumstances involving a termination for cause.
The total inducement grant for restricted stock units was made outside
of the company’s 2013 Incentive Plan. The independent directors of WPX’s
board of directors approved the employment inducement award in reliance
on the employment inducement exception to shareholder approval provided
under NYSE Rule 303A.08.
About WPX Energy, Inc.
WPX Energy is an independent exploration and production company formed
during a spinoff two years ago. Overall, WPX has more than 30 years of
experience in its sector along with 40 local, state and federal awards
for efficiency, innovation and corporate social responsibility.
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.
Copyright Business Wire 2014