WPX Energy Inc. closed a deal to sell its holdings in the San Juan Basin of New Mexico and Colorado for $700 million as the company seeks to pay down its debt.
WPX will now focus its operations on its two core positions in the Delaware and Williston basins, according to a March 29 news release, and will reallocate capital previously budgeted for the San Juan Basin's Gallup oil play to those basins.
"Our path forward is clear and compelling," WPX Chairman and CEO Rick Muncrief said in the release. "It's about consistent execution, sticking with our multi-year plan and continuing to create value by looking ahead."
WPX said it hopes to be able to reduce its net debt/EBITDAX ratio to a target level of 1.5x during 2019.
In five years, WPX has transformed its portfolio through almost $8 billion in transactions to become 80% oil and NGLs and 20% natural gas on a pro forma basis, from 80% gas and 20% liquids. WPX previously divested legacy natural gas assets in the San Juan Basin for $175 million after closing adjustments, as well as a gathering system in the basin for $309 million.
CIBC Griffis & Small provided advisory services to WPX, while Holland & Hart LLP served as legal counsel for the deal.