WPX Energy: Transformation In Progress
WPX Energy: What To Expect In 2016
Richard Zeits • 10 Comments
Richard Zeits • 10 Comments
Tue, Feb. 9, 7:44 AM
- WPX Energy (NYSE:WPX) agrees to sell natural gas assets in Colorado's Piceance basin to privately-held Terra Energy Partners for $910M.
- WPX says the deal solidifies it as a Permian-focused company, provides a more balanced commodity mix, will enhance its liquidity, improve its capital efficiency and returns, and materially lower G&A expenses going forward.
- WPX expects oil to comprise ~50% of its future production volumes, up from ~20% during 2015.
Dec. 31, 2015, 10:34 AM
- In a deal that allows the company to exceed its 2015 deleveraging goal, WPX Energy is selling its San Juan Basin gathering system to a fund managed by I Squared Capital for $309M. The payout consists of "$285 million cash subject to closing adjustments and a commitment estimated at $24 million in capital designated by the purchaser to expand the system to support WPXs development in the Gallup oil play."
- As part of the deal, WPX will continue operating the gathering system for at least two years, and perhaps longer. Closing is expected in Q1.
- WPX reiterates it's evaluating options (previous) for its Piceance Basin holdings, and promises to continue prioritizing debt reduction in 2016. The company currently has $3.2B in net debt, and notes its Gallup play footprint now consists of "approximately 100,000 acres with oil production exceeding 10,000 barrels per day in [Q3]."
- Four months ago: WPX selling North Dakota gathering system for $185M
Jul. 14, 2015, 7:07 AM
- WPX Energy (NYSE:WPX) agrees to acquire privately held RKI Exploration & Production for $2.35B, in a deal that will give it access to the liquids-rich Permian Basin in Texas and New Mexico.
- RKI’s Permian leaseholds include 22K boe/day of existing production, roughly half of which is oil; 92K net acres in the core of the Permian’s Delaware Basin; and 375 miles of gas gathering and water infrastructure.
- With the purchase, WPX says oil will account for ~22% of equivalent production this year, 30% next year and 36% in 2017, after rising from 8% over the last three years.
- To help fund the deal, WPX plans to sell $1.2B in debt, 27M common shares and $300M in preferred stock.
Oct. 3, 2014, 11:56 AM
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.