WPX Energy Completes Gallup Sale for $700 Million
WPX Energy (NYSE: WPX) has closed an agreement to sell its holdings in the San Juan Basin’s Gallup oil play to Enduring
Resources IV, LLC for $700 million prior to closing adjustments.
A significant portion of the proceeds are 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 operations in the San Juan Basin, signaling the company’s confidence in its two
remaining core positions in the Delaware (Permian) and Williston basins.
“Our path forward is clear and compelling. It’s about consistent execution, sticking with our multi-year plan and continuing to
create value by looking ahead,” said Rick Muncrief, WPX chairman and CEO.
WPX’s production is now 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 $8 billion of
transactions.
CIBC Griffis & Small provided advisory services to WPX for the transaction. Holland & Hart LLP served as WPX’s external
legal counsel.
About WPX Energy, Inc.
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 Permian Basin.
Visit www.wpxenergy.com for more information.
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 .
Additionally, the SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are
those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty
to be economically producible – from a given date forward, from known reservoirs, under existing economic conditions, operating
methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. From time to
time, we elect to use “probable” reserves and “possible” reserves, excluding their valuation. The SEC defines “probable” reserves
as “those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves,
are as likely as not to be recovered.” The SEC defines “possible” reserves as “those additional reserves that are less certain to
be recovered than probable reserves.” The Company has applied these definitions in estimating probable and possible reserves.
Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve
estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include
estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC’s reserves reporting guidelines.
Investors are urged to consider closely the disclosure in our SEC filings that may be accessed through the SEC’s website at
www.sec.gov .
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
Media Contact:
Kelly Swan, 539-573-4944
or
Investor Contact:
David Sullivan, 539-573-9360
View source version on businesswire.com: https://www.businesswire.com/news/home/20180329005850/en/