Williams separates functions into two stand-alone entities
An energy exploration, production and transportation corporation with operations in Western Colorado has completed the process of separating its business functions into two companies.
Williams has spun off its exploration and production operations into a new corporation called WPX Energy.
Williams now focuses on transportation operations, including processing, gathering and shipping natural gas.
Both companies operate headquarters in Tulsa, Okla., and are traded on the New York Stock Exchange.
“We’ve now fully executed on our plans to create two separate and strong companies, each with a clear focus,” said Alan Armstrong, president and chief executive officer of Williams. “This effort has been all about unlocking value for shareholders and creating the best possible growth prospects for our businesses.”
WPX Energy will continue to produce natural gas in the Piceance Basin in Western Colorado as well as natural gas and oil in the Bakken formation in North Dakota and Marcellus formation in Pennsylvania.
“We have a significant inventory of drilling opportunities in our existing acreage that we believe will allow us to continue to deliver solid results, like double-digit production growth,” said Ralph Hill, CEO of WPX Energy.
“We’re also targeting a more balanced approach in our commodity mix,” Hill added. “With that, we’re expecting approximately 37 percent of our 2012 revenues to come from oil and natural gas liquids.”
WPX Energy has total proved, probable and possible reserves of the equivalent of 15.9 trillion cubic feet in natural gas and oil with daily production of the equivalent of 1.3 billion cubic feet. Production figures include 14,800 barrels of oil and 26,800 barrels of natural gas liquids a day.
The company employs more than 1,200 people with offices in Tulsa and Denver as well as Parachute and Gillette, Wyo.
WPX owns a 69 percent controlling interest in Apco Oil and Gas International.
Through its investment in Williams Partners, an energy master limited partnership, Williams operates three major interstate pipelines through which flows about 14 percent of the natural gas consumed in the United States.
In addition to 15,000 miles of interstate gas pipelines, Williams operates 10,000 miles of oil and gas gathering pipelines and 1,000 miles of natural gas liquid transportation pipelines.