WPX Energy Inc. (WPX) has quickly hit the pavement, selling assets to free up capital for its newly acquired position in the Permian Basin.
WPX Energy said Aug. 31 it has agreed to sell a North Dakota gathering system to a private equity fund managed by the Ares EIF Group, a subsidiary of Ares Management LP (ARES). The transaction is worth about $185 million and is expected to close in 60 days.
The gathering system supports WPX's development in the Van Hook peninsula area in the Williston Basin. The Van Hook facility is an oil, natural gas and water gathering system.
The Tulsa, Okla.-based company is working to quickly reduce debt just two weeks after closing its acquisition of privately held RKI Exploration & Production LLC. The $2.75 billion deal added decades of drilling inventory in the core of the Permian's Delaware Basin.
Re-exports from European LNG import terminals could intensify given the wide spread between domestic gas hub prices, currently trading around $6.10 per million British thermal units, and Asian markets, Reuters said.
Oil-price volatility is creating a nightmare for petrochemical companies planning investments, according to Don Bari, vice president of technology and analytics for IHS Chemical and author of the report.
Gasoline stocks rose 1.7 million barrels, compared with forecasts for a 1.3 million-barrel drop. Distillates climbed 1.4 million barrels, vs. expectations for a 1.0 million barrels increase, Reuters said.