WPX Energy Inc. (WPX) said Mayt 27 it completed the sale of a package of Marcellus Shale marketing contracts and the release of certain related firm transportation capacity to an undisclosed buyer.
WPX, based in Tulsa, Okla., received in excess of $200 million cash for various long-term natural gas purchase and sales agreements and was released from about $390 million in future demand payment obligations associated with 135 million British thermal units (MMBtu/d) of firm transportation capacity on Transco’s Northeast Supply Link project.
WPX has been active on the acquisitions and divestiture front, 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%.
“We’re very pleased with the rapid closing of this previously announced agreement,” said Rick Muncrief, president and CEO, in a statement. "Once again, our team continues to deliver value for our shareholders.”
WPX said it intends to exit the Marcellus Shale as it focuses its portfolio on oil and gas properties in the western U.S.
WPX’s only remaining assets in the Marcellus Shale primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania. These assets 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.
Recommended Reading
Marketed: Delta Minerals Non-producing Sale in Colorado
2024-05-02 - Delta Minerals LLC has retained EnergyNet for the sale of non-producing minerals in Bent, Cheyenne and Kiowa counties, Colorado.
NuStar Energy Unitholders Approve Merger with Sunoco
2024-05-02 - The transaction is expected to close on or about May 3, in which NuStar Energy LP will merge with and into a merger subsidiary of Sunoco LP.
FTC OKs Exxon-Pioneer Merger, but Bars Sheffield from Exxon’s Board
2024-05-02 - A megamerger between Exxon Mobil and Pioneer Natural Resources can proceed, but Pioneer Chairman Scott Sheffield is out, the Federal Trade Commission says.
Comstock Adds Four Whopper Wildcats; Takes Western Haynesville to 450K
2024-05-01 - Comstock Resources' four newest wells, which IP’ed at more than 35 MMcf/d, were landed at up to 19,400 feet total vertical depth.
Exxon Signals Potential Counter Offer for Hess’ Guyana Assets
2024-03-07 - Exxon Mobil has filed a contract arbitration claim related to Chevron’s proposed purchase of Hess Corp.’s interests in the Stabroek Block offshore Guyana.