Tulsa’s WPX Energy has gained $350 million in the sale of its joint project in the Oryx II pipeline in the Permian Basin.The company announced the sale was completed this week.
WPX Energy had 25 percent equity interest and received the net proceeds of nearly $350 million after adjusting for debt financing related to Oryx II. The company also said it expects to save nearly $40 million in planned equity investments for the balance of the year due to the sale.
WPX is retaining its contractual rights as a shipper on Oryx and plans to deploy proceeds from the transaction to pay off its revolver balance.
The Oryx II transaction is WPX’s second midstream monetization in 2019. WPX already closed the sale of a 20 percent equity interest in WhiteWater Midstream’s Agua Blanca natural gas pipeline system.
WPX invested approximately $125 million in the Oryx and WhiteWater systems, primarily in 2017 and 2018. The investments generated approximately half of a billion dollars in net proceeds this year.
Oryx Midstream Services II, LLC announced plans to build the regional crude oil transportation line serving the Delaware Basin in 2017. At the time, an estimated 300,000 acres were dedicated to the nearly 220-mile long line that provides receipt points from the Carlsbad, Stateline, Pecos and Pyote areas. It delivers crude to Midland, Texas and consists of 16, 20 and 24-inch lines.