WPX Energy to form new partnership

WPX Energy Inc. intends to form a master limited partnership to hold some of its producing natural gas assets in Colorado.
by Jay F. Marks Published: November 16, 2013

WPX Energy Inc. will form a master limited partnership to cash in on its mature natural gas properties in Colorado.

The new firm, WPX Energy Partners LP, will be launched next year with an initial public offering of common units, WPX announced late Thursday. It is expected to own producing assets in Colorado's Piceance Basin.

WPX's stock gained 2 cents on Friday, closing at $18.40 a share.

Jake Dollarhide, CEO of Longbow Asset Management Co. in Tulsa, said the move should bolster WPX, which is carrying a lot of debt like many other small exploration and production companies.

The company also is trying to move away from natural gas in light of continued low commodity prices.

“They're doing their best,” Dollarhide said. “They're being very aggressive in trying to get to even 30 percent liquids.”

He said selling units in a new MLP will allow WPX to monetize mature assets, providing cash to fund ongoing operations and repay debt.

“First and foremost they're looking to raise money,” Dollarhide said.

by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
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