A subsidiary of oil and gas producer WPX Energy Inc. and its joint venture partner closed the sale of Oryx Midstream Services LLC's Oryx II pipeline to Stonepeak Partners LP, as part of the investment firm's acquisition of Oryx's crude oil transportation assets in the Permian Basin.
In return for its 25% stake in Oryx II, WPX received about $350 million in net proceeds, adjusted for debt financing related to the project. The Permian Basin-focused driller would use the proceeds from the sale to repay revolver debt, according to a May 23 news release.
Under the agreement, WPX would retain its contractual rights as a shipper on the pipeline. WPX anticipates saving about $40 million in planned equity investments for the rest of the year as a result of the sale.
Stonepeak, which does business as Stonepeak Infrastructure Partners, in April agreed to acquire all the assets of Oryx Midstream Services for about $3.6 billion. Besides WPX, Stonepeak also acquired stakes in Oryx assets from oil and gas producer Concho Resources Inc. and private equity firms Quantum Energy Partners and Post Oak Energy Capital LP.