WPX EnergyInc. has completed its $910 million sale of subsidiary WPXEnergy Rocky Mountain LLC to Terra Energy Partners LLC, according toan April 8 news release.
The sale is expected to strengthen liquidity, reinforcethe company's focus on the Permian Basin and balance its commodity mix, WPX saidin the release. Oil is expected to make up about half of its future production volumes,from about 20% in 2015.
Over the past two years, WPX was able to by boosting acreagein the Permian's Delaware Basin and North Dakota's Williston Basin, as well as aleading position in the San Juan Basin, representing over $5 billion in transactions.
WPX plans to use the proceeds from the sale for a varietyof purposes, which include leverage reduction, additional drilling, infrastructureinvestments such as a possible Permian gathering system expansion and buying outany retained transportation obligations.
The results of the Piceance Basin operations, includingassociated production volumes, will be reclassified as discontinued operations,and its production volumes will not be reflected in WPX's first-quarter 2016 results,according to the release.