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Wpx Energy Completes $910 Million Sale Of Piceance Subsidiary

The following excerpt is from the company's SEC filing.

TULSA, Okla. WPX Energy (NYSE: WPX) announced today that it has completed the sale of its wholly owned subsidiary WPX Energy Rocky Mountain, LLC, to Terra Energy Partners LLC for $910 million subject to closing adjustments.

The divestiture greatly enhances WPXs liquidity, will significantly improve its capital efficiency and returns, and lead to materially lower general and administrative expenses going forward.

The move also solidifies WPXs focus on the Permian Basin and balances the companys commodity mix. WPX expects oil to comprise approximately half of its future production volumes, up fr om roughly 20 percent in 2015.

The results of WPXs Piceance Basin operations, including associated production volumes, will be reclassified as discontinued operations. Piceance production volumes will not be reflected in the companys first-quarter 2016 financial and operations results.

WPX has a variety of options for the Piceance proceeds, including leverage reduction, additional drilling, infrastructure investments such as expanding its Permian gathering system, and buying out of any retained transportation obligations.

As previously announced, WPX also closed the sale its San Juan Basin gathering system in March for $309 million in total consideration and recently strengthened its liquidity by amending its revolving credit facility. WPX received $1.2 billion of commitments on a senior...