WPX High-Grades Portfolio

TULSA, Okla.--(BUSINESS WIRE)--

WPX Energy WPX announced today that it has executed multiple agreements to deepen the company's investment opportunities as it focuses on margin improvement.

The transactions, which are subject to normal closing conditions, will enable WPX to divest its mature coalbed methane holdings and bolster high-growth San Juan oil acreage by more than 50 percent.

“We're moving quickly to build scale and create additional shareholder value,” said Rick Muncrief, WPX president and chief executive officer. “These transactions largely offset and demonstrate our commitment to deploy capital where we can generate the highest returns.”

POWDER RIVER BASIN DIVESTITURE

WPX has agreed to sell its remaining mature, coalbed methane holdings in the Powder River Basin for $155 million in cash. As part of the transaction, WPX also releases firm transportation with $30 million in future demand obligations.

Mid-year reserves in the basin are 222 Bcfe and second-quarter production was 154 MMcf per day, which includes operated and non-operated working interests in approximately 5,000 wells. WPX has not actively drilled in the basin since 2011.

In 2013, production in the basin represented approximately 14 percent of the company's total production, but generated only 5 percent of WPX's adjusted EBITDAX results, excluding the impact of unutilized transportation.

The transaction should improve WPX's consolidated operating cost structure for lease operating, gathering and transport expenses.

26,000 MORE ACRES IN THE GALLUP OIL PLAY

WPX has executed multiple transactions and now controls 26,000 additional acres in the heart of the San Juan Basin's Gallup oil window, an acreage increase of more than 50 percent since May.

The transactions include approximately 800 barrels of oil equivalent per day. WPX now has 74,600 net acres exposed to San Juan Gallup oil. The majority of the acreage is held-by-production.

WPX now has an estimated 425 gross drillable locations for oil in the area assuming 160-acre spacing. WPX will add a third rig and possibly a fourth in 2015 to accelerate development.

CONFERENCE PRESENTATION

As previously disclosed, WPX Energy CEO Rick Muncrief is scheduled to speak at the EnerCom Oil and Gas Conference in Denver on Tuesday, Aug. 19.

Mr. Muncrief's presentation is scheduled to begin at approximately 12:20 p.m. Mountain. Please visit www.wpxenergy.com on the day of the event to confirm the time, see the slides and to listen to the webcast.

About WPX Energy, Inc.

WPX Energy is an independent exploration and production company formed during a spinoff two years ago. Overall, WPX has more than 30 years of experience in its sector along with more than 40 local, state and federal awards for efficiency, innovation and corporate social responsibility.

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC's website at www.sec.gov.

Additionally, the SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. From time to time, we elect to use “probable” reserves and “possible” reserves, excluding their valuation. The SEC defines “probable” reserves as “those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.” The SEC defines “possible” reserves as “those additional reserves that are less certain to be recovered than probable reserves.” The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC's reserves reporting guidelines. Investors are urged to consider closely the disclosure in our SEC filings that may be accessed through the SEC's website at www.sec.gov.

The SEC's rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.