WPX Energy (NYSE: WPX) has completed its third divestiture of the year, closing the sale of a package of Marcellus shale marketing contracts and the release of certain related firm transportation capacity to an undisclosed buyer.
WPX received in excess of $200 million cash for various long-term natural gas purchase and sales agreements and was released from approximately $390 million in future demand payment obligations associated with 135 million Btu per day of firm transportation capacity on Transco’s Northeast Supply Link project.
WPX has been active on the acquisitions and divestiture front, reaching more than $1.5 billion in transactions over the past 12 months that increased the company’s financial flexibility. During first-quarter 2015, WPX used proceeds from sales to repay prior borrowings on its $1.5 billion senior unsecured credit facility and reduce its long-term debt by 12%.
WPX intends to exit the Marcellus shale play as it focuses its portfolio on oil and gas properties in the western US. WPX’s only remaining assets in the Marcellus shale primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania. These assets remain targeted for divestiture. Earlier this year, WPX also monetized additional Marcellus shale play holdings in Northeast Pennsylvania and completed the exit of its international interests in Argentina and Colombia.