WPX Energy Sells Powder River Basin Assets, $80M

WPX Energy

has completed the divestiture of its remaining mature coalbed methane properties in Wyoming's Powder River Basin and scheduled a related sale of its membership interest in Fort Union Gas Gathering L.L.C. to close in November. The buyer is Moriah Powder River L.L.C. The sales price for the assets is $80 million. Divesting the Powder River Basin operations further sharpens WPX's portfolio and supports the company's delevering plan following its acquisition of Permian Basin assets on Aug. 17. Yesterday, WPX also announced that it has signed an agreement to sell a North Dakota gathering system for approximately $185 million, which is expected to close in the fourth quarter. Combined, the asset sales place WPX more than half of the way toward its 2015 goal targeting $400-$500 million in divestitures by the end of the year. "We will remain diligent in our debt reduction efforts," said Rick Muncrief, WPX president and chief executive officer. Results from WPX's Powder River Basin assets in Wyoming were classified as discontinued operations prior to the divestiture. WPX has not actively drilled in the basin since 2011. WPX also is targeting another $400-$500 million in asset sales in 2016. Other portfolio rationalization opportunities include the monetization of additional midstream infrastructure, non-operated properties or other asset sales, along with evaluating creative options to unlock Piceance Basin value.