WPX Energy sells northwest New Mexico assets to focus on Permian Basin
FARMINGTON, N.M. (AP) — An Oklahoma independent oil and gas company has moved out of northwest New Mexico to concentrate on operations in the Permian Basin and North Dakota.
The Tulsa, Oklahoma-based WPX Energy Inc. recently announced the sale of the last of its Four Corners assets for $700 million, the Daily Times of Farmington reports .
WPX sold some 150 oil wells on about 100,000 acres in Gallup to an undisclosed party in a transaction that is expected to close by the end of March, WPX spokesman Kelly Swan said.
Swan said WPX has been shifting its focus and funneling its resources to its operations in the Permian Basin of southeast New Mexico and west Texas and in the Williston Basin of North Dakota over the past few years.
“The decision was made basically to focus capital in those two areas, so that essentially then frees up that capital to flow to those areas where we’re a little more active,” Swan said.
WPX’s Aztec office has approximately 40 employees remaining after the company sold its natural gas assets in the San Juan Basin to Farmington-based Logos Resources II, LLC in December. Swan said WPX’s employees “should all have the opportunity to transition” to the incoming company.
WPX leaves San Juan Basin after 35 years in the Four Corners region, according to its website.
Last week, WPX reported a loss of $38 million in its fourth quarter. The company said it had a loss of 11 cents per share. Losses, adjusted for non-recurring costs and to account for discontinued operations, came to 2 cents per share.
The results surpassed Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for a loss of 8 cents per share.
Information from: The Daily Times, http://www.daily-times.com