WPX Energy sells Piceance subsidiary for $910M

WPX Energy (NYSE: WPX) has signed an agreement to sell its wholly owned subsidiary WPX Energy Rocky Mountain LLC to Terra Energy Partners LLC for $910 million. The parties expect to close the sale in the second quarter.

Additionally, Terra is assuming approximately $100 million in transportation obligations in exchange for more than $90 million of WPX’s natural gas hedge value. WPX will retain more than $110 million in additional hedge gains, which will be realized throughout the year.

The divested assets consist of an approximate 200,000-net-acre position in the Piceance Basin of Colorado boasting recent net production of approximately 500 million cubic feet equivalent per day. The assets also include deep rights across approximately 150,000 net acres prospective for the emerging horizontal Mancos-Niobrara play.

Credit Suisse acted as the exclusive financial advisor to WPX on the Piceance transaction.

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