Shares of WPX Energy will begin trading “regular way” on the New York Stock Exchange today following a successful spinoff from Williams that concluded on Dec. 31.
WPX Energy is an active developer and producer of oil, natural gas and gas liquids in resource-rich areas such as North Dakota’s Bakken Shale, Pennsylvania’s Marcellus Shale and Colorado’s Piceance Basin.
“We have a significant inventory of drilling opportunities in our existing acreage that we believe will allow us to continue to deliver solid results like double-digit production growth,” said Ralph Hill, chief executive officer.
“We’re also targeting a more balanced approach in our commodity mix. With that, we’re expecting approximately 37 percent of our 2012 revenues to come from oil and natural gas liquids,” Hill added.
Executives and guests of WPX Energy will celebrate the company’s new start as an independent, publicly traded company at the NYSE this morning when CEO Ralph Hill rings The Opening Bell.
Hill also is scheduled to appear on Bloomberg at approximately 10:45 a.m. Eastern this morning via a live interview from the NYSE trading floor.
WPX has total proved, probable and possible (3P) reserves of 15.9 trillion cubic feet equivalent as of year-end 2010; daily production of 1.3 billion cubic feet equivalent – including 14,800 barrels per day of oil and 26,800 barrels per day of natural gas liquids – as of October 2011; and more than 1.6 million net acres under lease.
WPX has its headquarters in Tulsa, Okla., and a regional office in Denver. Overall, the company employs more than 1,200 people. Its largest offices are in Tulsa, Denver, Parachute, Colo., and Gillette, Wyo.
Internationally, WPX has a 69 percent controlling interest in Apco Oil and Gas International(APAGF). International reserves and production are included in the company’s key operating statistics.
The CUSIP number for WPX common stock is 98212B 10 3. WPX is also included in the S&P 500 index.
Former parent Williams issued its own press release describing its new structure and prospects after spinning off its E&P assets
Williams has completed the process of separating the company’s businesses into two stand-alone, publicly traded corporations. The company’s former exploration and production business, WPX Energy, Inc., will begin trading on the New York Stock Exchange today under the ticker symbol “WPX.”
The separation process was completed with the Dec. 31 distribution of one share of WPX Energy common stock for every three shares of Williams common stock held by Williams shareholders.
Williams, including its assets held through Williams Partners L.P. (WPZ), is now an energy infrastructure company focused on connecting North America’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGLs) and olefins. Williams’ operations span from the deepwater Gulf of Mexico to the Canadian oil sands.
“We’ve now fully executed on our plans to create two separate and strong companies, each with a clear focus,” said Alan Armstrong, Williams’ president and chief executive officer. “This effort has been all about unlocking value for shareholders and creating the best possible growth prospects for our businesses.
“Williams now has an intense focus on providing our customers with the reliable infrastructure services that will help them optimize the value of North America’s significant and growing resource plays.
“And we offer a clear focus for our investors – we are a high-dividend, high-growth energy infrastructure company with investment-grade credit ratings,” Armstrong said.
Williams in 2012 and Beyond – By the Numbers
Williams’ interstate gas pipeline and domestic midstream interests are largely held through its significant investment in Williams Partners L.P., one of the largest energy master limited partnerships. Williams owns the general-partner interest and a 73-percent limited-partner interest in Williams Partners.
Williams Partners’ three major interstate gas pipelines (Transco, Northwest Pipeline, Gulfstream) run 15,000 miles and deliver approximately 14 percent of the natural gas consumed in the United States. With a combined design capacity of more than 14 billion cubic feet per day (Bcf/d), these pipelines transport enough natural gas in one day to serve the needs of more than 30 million homes. The partnership’s large-scale midstream business includes approximately 1,000 miles of natural gas liquid (NGL) transportation pipelines, and more than 10,000 miles of oil and gas gathering pipelines. The partnership’s midstream facilities have daily gas processing capacity of 6.6 Bcf of natural gas and NGL production of more than 200,000 barrels per day.
Williams also owns a growing Canadian midstream and domestic olefins production business. The company’s facilities in Canada process the off-gas created by the oil sands production into 14,000 barrels per day of an NGL/olefins mixture. Expansions to those facilities are underway, as well as construction of a new Canadian NGL pipeline. Williams’ Geismar facility in Louisiana currently produces 1.35 billion pounds of ethylene annually. It is also in the process of being expanded to further serve the petrochemical industry.
Williams’ corporate headquarters is in Tulsa, Okla., and the company has approximately 4,100 employees in the United States and Canada.
WPX Energy is trading at $18.40 having traded in a range of $17.01 to $23.42 as a when-issued stock.
Disclosure: The author holds no position in any stock mentioned