WPX Energy has sold a subsidiary company involved in natural gas development in the Piceance Basin in Western Colorado as part of efforts to boost liquidity, pay down debt and shift focus to oil-producing regions.
WPX announced an agreement to sell WPX Energy Rocky Mountain to Terra Energy Partners for $910 million. The transaction is expected to close in the second quarter.
WPX Energy Rocky Mountain owns and operates natural gas and oil leases, wells and other facilities. Its assets include roughly 200,000 acres with net production of the equivalent of about 500 million cubic feet of natural gas a day.
“This divestiture will greatly enhance WPX’s liquidity, significantly improve its capital efficiency and returns and materially lower general and administrative expenses going forward,” WPX Energy stated in a news release.
The move also will further shift the focus of company operations to oil-producing regions in Texas, North Dakota and New Mexico. WPX expects oil to account for about half of future production volumes, up from 20 percent during 2015.
WPX has executed about $5.5 billion in transactions over the past 21 months as company operations and assets have changed.