Ares Management subsidiary Ares EIF Group has acquired a North Dakota gathering system from WPX Energy. The price of the acquisition is about $185 million.
PRESS RELEASE
TULSA, Okla.–(BUSINESS WIRE)–WPX Energy (NYSE: WPX) announced today that it 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, L.P. (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.
“We are fully engaged in debt reduction efforts,” stated Rick Muncrief, WPX president and chief executive officer. “Our ability to move quickly and decisively is one of our strengths.”
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.
About WPX Energy, Inc.
WPX is a domestic energy producer with operations in the western United States. The company has reported double-digit oil volume growth in each of the past three years and is reshaping its portfolio through more than $4 billion of acquisitions and divestitures.
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