WPX Energy Inc (NYSE:WPX) has announced that it has signed an agreement sell its holdings in the Gallup oil play from San Juan Basin to Enduring Resources IV, LLC. Enduring Resources IV will pay $700 million before the closing adjustments.
WPX Energy a certain portion of the proceeds to service and reduce on its debt. The company has said it is now in a position to reduce its net debt/EBITDAX to a target level of 1.5x in 2019.
This transaction completes the company’s long planned exit from business in the San Juan Basin. It also signals WPX’s confidence in its two remaining strategic positions located in the Williston and Delaware (Permian) basins.
While commenting on the transaction, WPX chairman and CEO Rick Muncrief said the company has a clear and compelling path going forward. He added that the company intends to consistently work on executing its multi-year programs as well as continuing to create value for shareholders.
The current production of WPX is around 80 percent liquids and 20 percent natural gas. In the past, it was the opposite case with 80 percent natural gas and 20 percent liquids. The company has significantly changed its portfolio through around $8 billion of transactions. The company used CIBC Griffis & Small for advisory services during this transaction. WPX used Holland & Hart LLP as its external legal counsel
In other news, the company recently announced the appointment of Valerie M. Williams to the company’s board of directors. The appointment takes effect immediately.
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Williams brings on board over 35 years of experience in auditing and public accounting while working with Ernst & Young, LLP. Most recently, he was in a charge of a $500 million at Southwest Region Assurance Managing Partner. The project covered nine states, 1,200 and 14 offices. She retired from the company in 2016.
Some of her experience while working at Ernst & Young included giving support to energy clients as she worked with midstream companies, oil and gas producers as well as large integrated firms with international operations. Apart from her formal leadership positions, Williams also served on the partner advisory council, diversity task force and inclusiveness council at Ernst & Young.