WPX Completes $910 Million Sale Of Piceance Subsidiary
Assets included about 200,000 net acres with 11,000 gross drilling locations in Colorado.
WPX Energy Inc. (NYSE: WPX) said April 8 it has completed the sale of its Piceance Basin assets to private equity backed Terra Energy Partners LLC for $910 million.
In February, the Tulsa, Okla.-based company entered into an agreement to sell its subsidiary WPX Energy Rocky Mountain LLC to Terra Energy.
Assets included about 200,000 net acres with 11,000 gross drilling locations in Colorado. Production is about 500 million cubic feet equivalent per day.
Proceeds from the sale should help ease concerns over the company’s leverage and motivate investors, according to the release.
WPX said it has a variety of options for the Piceance proceeds beyond paying debt, including additional drilling, infrastructure investments to its Permian gathering system and buying out of any retained transportation obligations including obligations associated with Piceance operations.
