A $910 million sale of a Colorado subsidiary of Tulsa-based WPX Energy was announced by the company. The sale of WPX Energy Rocky Mountain LLC was to Terra Energy Partners LLC and boosts the liquidity of WPX, improving its capital efficiency and returns. The Rocky Mountain LLC had operations in the Piceance Basin.
WPX said it also solidifies the company’s focus on the Permian Basin and balances the firm’s commodity mix. WPX expects oil to comprise nearly half of its future production volumes, up nearly 20 percent from 2015.
The sale comes on the heels of WPX’s sale of its San Juan Basin gathering system in March for $309 million.
“Over the past two years, we’ve built strong credibility by doing everything we said we’d do,” said Rick Muncrief, WPX President and CEO. “Our portfolio today is sharper and more focused than ever before, which is critical in the current environment.”
He said that after more than $5 billion in transactions in the past two years, the company’s re-shaped portfolio boasts acreage in the core of two prolific oil-dominant areas, the Permian’s Delaware Basin and North Dakota’s Williston Basin.
The annual meeting of WPX will be held May 19 in Tulsa.
