WPX Energy (NYSE:WPX) announced today that it has completed the
previously announced sale of its San Juan Basin gathering system for
consideration of approximately $309 million.
WPX received $285 million cash subject to closing adjustments and a
commitment by the purchaser estimated at $24 million to expand the
system to support WPX’s development in the basin’s Gallup oil play.
WPX has rapidly grown its footprint in the Gallup oil play to
approximately 100,000 acres. Year-over-year, WPX increased Gallup oil
volumes by 128 percent in 2015 to an average of 8,900 barrels per day.
The company also expects to complete the previously announced sale of
its Piceance Basin subsidiary for $910 million in the second quarter.
“These actions provide us with flexibility to manage our balance sheet,
enhance our liquidity and develop the world-class resources we have in
our portfolio,” said Rick Muncrief, WPX president and chief executive
officer.
About WPX Energy, Inc.
WPX is an oil-focused energy company with operations in the Permian’s
Delaware Basin, the Williston Basin and the San Juan Basin. The company
reshaped its holdings through more than $5 billion of transactions and
posted double-digit oil volume growth in each of the past four years.
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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