WPX Energy Completes $350 Million Sale of Pipeline Interest

Source Press Release
Company WPX Energy, Inc.Concho Resources IncQuantum Energy PartnersStonepeak Infrastructure Partners 
Tags Corporate Deals, Deals, LNG & Gas Storage/Processing, Pipelines/ tankers/ distribution
Date May 23, 2019

A subsidiary of WPX Energy (NYSE: WPX) and its joint venture partner in the Oryx II pipeline have completed the sale of the project.

WPX received net proceeds of approximately $350 million for its 25 percent equity interest after adjusting for debt financing related to Oryx II.

In addition, WPX expects to save approximately $40 million in planned equity investments for the balance of the year due to the sale.

WPX is retaining its contractual rights as a shipper on Oryx and plans to deploy proceeds from the transaction to pay off its revolver balance.

The Oryx II transaction is WPX’s second midstream monetization in 2019. WPX already closed the sale of a 20 percent equity interest in WhiteWater Midstream’s Agua Blanca natural gas pipeline system.

WPX invested approximately $125 million in the Oryx and WhiteWater systems, primarily in 2017 and 2018. The investments generated approximately half of a billion dollars in net proceeds this year.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd