On June 4, Legacy Reserves LP (NASDAQ: LGCY) said it closed an agreement with WPX Energy Inc. (NYSE: WPX) to purchase a working interest in WPX’s Piceance Basin acreage.
In the agreement, the working interest, which will move to 37% in 2015 from its current 29%, covered more than 2,680 natural gas wells in the basin, Legacy said. It will increase to 41% in 2016, the company noted.
Legacy purchased it for $355 million in cash and some of its new incentive distribution units, the company said.
"Closing this transaction represents a key first step in our exciting strategic alliance with WPX Energy. This acquisition, combined with the ability to complete future transactions with WPX, greatly enhances our goal of delivering long-term unitholder value,” said Cary Brown, the company’s chairman, president and CEO.
He added, “We look forward to realizing the benefits of these assets and remain hopeful of the potential of additional transactions together. I would like to thank all of our employees for their hard work during this process, and would also like to thank the folks at WPX for all of their work as well."
Midland, Texas-based Legacy Reserves LP is an MLP focused on domestic upstream.
WPX Energy, based in Tulsa, Okla., produces domestic oil, natural gas and NGL.
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