WPX Energy (NYSE: WPX) has completed the sale of a North Dakota gathering system for approximately $185 million to a private equity fund managed by the Ares EIF Group, a subsidiary of Ares Management LP (NYSE: ARES).
The sale is part of WPX’s deleveraging plan targeting $400–$500 million in divestitures by the end of 2015. WPX also recently completed an $80 million sale of its coalbed methane properties in Wyoming.
WPX is working to reduce debt from a transformative acquisition in August that added decades of drilling inventory in the core of the Permian’s Delaware Basin. The company also has processes under way to market a San Juan Basin gathering system and to evaluate opportunities for accelerating value in the Piceance Basin.
The sale of the North Dakota asset consists of an oil, natural gas, and water gathering system. Under the terms of the agreement, WPX will continue to operate the system which supports its development in the Van Hook peninsula in the basin.
The system can be expanded and will be managed on behalf of Ares EIF Group by an affiliate of MCP Asset Development Group.