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WPX Energy concludes USD350m pipeline sale.

M2 EQUITYBITES-May 24, 2019-WPX Energy concludes USD350m pipeline sale

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Energy company WPX Energy (NYSE:WPX) announced on Thursday that a subsidiary of the company and its joint venture partner in the Oryx II pipeline have completed the sale of the project.

WPX received net proceeds of about USD350m for its 25% equity interest after adjusting for debt financing related to Oryx II, and it expects to save approximately USD40m in planned equity investments for the balance of the year.

The company is retaining its contractual rights as a shipper on Oryx and plans to deploy proceeds from the transaction to pay off its revolver balance.

The Oryx II transaction is reportedly WPX's second midstream monetisation in 2019. It sold a 20% equity interest in WhiteWater Midstream's Agua Blanca natural gas pipeline system.

WPX invested USD125m in the Oryx and WhiteWater systems in 2017 and 2018. The investments generated half of a billion dollars in net proceeds this year, the company said.

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Publication:M2 EquityBites (EQB)
Date:May 24, 2019
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