WPX Energy (NYSE: WPX) has signed an agreement to sell a package of Marcellus shale marketing contracts and to release certain related firm transportation capacity to an undisclosed buyer for more than $200 million cash.
The sale includes various long-term natural gas purchase and sales agreements, along with 135 million Btu per day of firm transportation capacity on Transco’s Northeast Supply Link project.
This is WPX’s second transaction monetizing its holdings in the Marcellus shale play. Earlier this year, WPX completed a $300 million sale of its Northeast Pennsylvania assets.
The parties expect to close the transaction in the second quarter of 2015. Upon completing the transaction, WPX will be released from various long-term natural gas purchase and sales obligations and approximately $390 million in future demand payment obligations associated with the transport position.
WPX’s only remaining assets in the Marcellus shale play primarily consist of its physical operations in Westmoreland County in southwestern Pennsylvania. These assets remain targeted for divestiture.
Over the past year, WPX has initiated more than $1 billion in transactions to reshape the company’s holdings and further strengthen its balance sheet.