TULSA, Okla.--(BUSINESS WIRE)--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.