WPX Energy Inc. (WPX) said Mayt 27 it completed the sale of a package of Marcellus Shale marketing contracts and the release of certain related firm transportation capacity to an undisclosed buyer.
WPX, based in Tulsa, Okla., received in excess of $200 million cash for various long-term natural gas purchase and sales agreements and was released from about $390 million in future demand payment obligations associated with 135 million British thermal units (MMBtu/d) of firm transportation capacity on Transco’s Northeast Supply Link project.
WPX has been active on the acquisitions and divestiture front, reaching more than $1.5 billion in transactions over the past 12 months that increased the company’s financial flexibility.
During first-quarter 2015, WPX used proceeds from sales to repay prior borrowings on its $1.5 billion senior unsecured credit facility and reduce its long-term debt by 12%.
“We’re very pleased with the rapid closing of this previously announced agreement,” said Rick Muncrief, president and CEO, in a statement. "Once again, our team continues to deliver value for our shareholders.”
WPX said it intends to exit the Marcellus Shale as it focuses its portfolio on oil and gas properties in the western U.S.
WPX’s only remaining assets in the Marcellus Shale primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania. These assets remain targeted for divestiture.
Earlier this year, WPX also monetized additional Marcellus Shale holdings in Northeast Pennsylvania and completed the exit of its international interests in Argentina and Colombia.
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