WPX closes public stock and senior notes offerings

WPX Energy (NYSE: WPX) has closed its concurrent public offerings of 30,000,000 shares of its common stock at a public offering price of $10.10 per share, 7,000,000 shares of 6.25% Series A mandatory convertible preferred stock with a purchase price and liquidation preference of $50 per share and $500 million aggregate principal amount of 7.50% senior unsecured notes due 2020 at par, and $500 million aggregate principal amount of 8.25% senior unsecured notes due 2023 at par.

In addition, WPX has granted the applicable underwriters options to purchase from WPX up to an additional 4,500,000 shares of common stock and up to an additional 1,050,000 shares of mandatory convertible preferred stock, in each case at the public offering price per share, less the applicable underwriting discount.

WPX intends to use the net proceeds from the offerings, together with cash on hand and borrowings under its revolving credit facility, to finance the acquisition of RKI Exploration & Production LLC and to pay related fees and expenses.

If for any reason the RKI acquisition is not consummated, then WPX Energy may use the net proceeds from the common stock offering and the mandatory convertible preferred stock offering (to the extent WPX Energy does not exercise its option to redeem the mandatory convertible preferred stock pursuant to its terms) for working capital needs or general corporate purposes, including the repayment of indebtedness and other acquisitions. The notes are subject to a special mandatory redemption if the RKI acquisition is not consummated.

Barclays Capital Inc., Tudor, Pickering, Holt & Co. Securities Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC, BofA Merrill Lynch, and Wells Fargo Securities LLC acted as joint book-running managers for the common stock offering.

Barclays Capital Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, and BNP Paribas Securities Corp. acted as joint book-running managers for the mandatory convertible preferred stock offering.

Barclays Capital Inc., Citigroup Global Markets Inc., JP Morgan Securities LLC, BofA Merrill Lynch, Wells Fargo Securities LLC, Credit Agricole Securities (USA) Inc., and Scotia Capital (USA) Inc. acted as joint book-running managers for the notes offering.

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