A Tulsa-based company WPX Energy – which holds oil and gas producing properties in North Dakota, New Mexico and Colorado – has announced the completion of its third asset-sale this year, closing the sale of a package of Marcellus Shale marketing contracts and the release of certain related firm transportation capacity to an undisclosed buyer.
The company received in excess of $200 million cash for various long-term natural gas purchase and sales agreements and was released from approximately $390 million in future demand payment obligations associated with 135 million Btu per day of firm transportation capacity on Transco’s Northeast Supply Link project.
WPX has been active on the acquisitions and divestiture front, according to the company’s statement, reaching more than $1.5 billion in transactions over the past 12 months that increased the company’s financial flexibility.
During first-quarter 2015, WPX used proceeds from sales to repay prior borrowings on its $1.5 billion senior unsecured credit facility and reduce its long-term debt by 12 percent.
“We’re very pleased with the rapid closing of this previously announced agreement,” says Rick Muncrief, president and chief executive officer. “Once again, our team continues to deliver value for our shareholders.”
According to a statement released by the company, WPX intends to exit the Marcellus Shale as it focuses its portfolio on oil and gas properties in the western United States.
Following the sale, WPX’s only remaining assets in the Marcellus Shale primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania. These assets also remain targeted for divestiture.
Earlier this year, WPX also monetized additional Marcellus Shale holdings in Northeast Pennsylvania and completed the exit of its international interests in Argentina and Colombia.
Article continues below this message
Have your opinion heard with Shale Gas International
We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.
If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.
If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com