Tulsa’s WPX Energy has wrapped up its $700 million sale of its holdings in the San Juan Basin’s Gallup oil play in northern New Mexico as part of continued debt-reduction efforts.
The company announced this week the agreement was closed as it reduces its net debt to a 2019 target level of 1.5x. The transaction finalizes WPX’s exit from operations in New Mexico and according to the announcement, “signaling the company’s confidence in its two remaining core positions in the Delaware (Permian) and Williston basins.”
“Our path forward is clear and compelling. It’s about consistent execution, sticking with our multi-year plan and continuing to create value by looking ahead,” said Rick Muncrief, WPX chairman and CEO.
WPX’s production is now approximately 80 percent liquids (oil and NGL) and 20 percent natural gas. Five years ago, it was the opposite at 80 percent gas and 20 percent liquids. WPX has aggressively transformed its portfolio through nearly $8 billion of transactions.