WPX Energy hedges more production, reduces debt

WPX says it remains engaged in discussions to sell all or a portion of its assets in Piceance Basin

TULSA, Okla.- WPX Energy says it has shored up its balance sheet by selling assets and hedging about 75 per cent of its oil production.

WPX Energy says it added more hedges to protect cash flows and repurchased a portion of notes that are due in early 2017.

Approximately three-fourths of WPX’s 2016 anticipated oil volumes are hedged well above current prices. The company now has 29,380 barrels of oil per day hedged at $60.85 per barrel in 2016. This includes another 2,000 bbl/d added since the company’s most recent quarterly report.

“We continue to proactively manage our finances,” said CEO Rick Muncrief said in a press release.

“This positions us to grow our portfolio when commodity prices rebound, especially our world-class Permian Delaware asset. The results of our early work in the basin are exceeding our expectations.”

Roughly two-thirds of WPX’s anticipated 2016 natural gas production is hedged at $3.63 per MMBtu. For 2017, WPX has 9,304 bbl/d of oil hedged at $61.66 per barrel and 92,500 MMBtu per day of natural gas hedged at $3.22.

Rick Muncrief president and chief executive officer of WPX Energy

Over the past two months, WPX reduced its long-term debt by repurchasing approximately $68 million in notes – or 17 percent – of a $400 million maturity due in early 2017 at a discount to par. The company’s next debt maturity does not occur until 2020.

WPX has been increasing its liquidity through asset sales. WPX exceeded its 2015 divestiture target with the previously announced agreement to sell its San Juan Basin gathering system. WPX also remains engaged in discussions with third parties relating to the disposition of all or a portion of its assets in the Piceance Basin.