Done deal: WPX, Legacy close on Piceance deal
WPX Energy expands board after CEO quits
18 December 2013 02:53 GMT
WPX warns on $1.4bn gas price hit
10 February 2014 10:02 GMT
WPX to set up new MLP
22 November 2013 12:00 GMT
WPX Energy appoints new CEO
01 May 2014 01:35 GMT
WPX in $355m deal for Piceance slice
06 May 2014 10:32 GMT
04 June 2014 20:48 GMT
Under the deal announced in May Legacy will take on an "escalating working interest" in 2680 natural gas wells that starts at 29% and rises to 41% by 2016.
WPX will also get a stake in a class of new incentive distribution rights (IDRs) created by Legacy, with the possibility to increase its share if other deals are done.
"Closing this transaction represents a key first step in our exciting strategic alliance with WPX Energy," Legacy chief executive Cary Brown said.
"This acquisition, combined with the ability to complete future transactions with WPX, greatly enhances our goal of delivering long-term unitholder value."
The MLP structure has gained favour among US onshore companies as a way to unlock value in assets that have predictable revenue streams while minimising corporate tax obligations.
The move marked a shift from WPX's previously stated intention to list its own MLP for areas in the basin.
Your message has been sent
E-mail this to a friend.
Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.
Already a member?
News from other NHST publications
All material published in the newspaper and on upstreamonline.com are Upstream's copyrighted material. Redistribution of any kind without a prior written permission of Upstream (including but not restricted to, redistribution by e-mail, publishing in part on your company's Intranet and publishing on Internet) of any material published by Upstream, will violate Upstream's copyright, and is prohibited by law. You may, however, download material from Upstream for your own personal use.
To protect your subscription investment, we've instituted a security system to protect against the electronic redistribution of copyrighted Upstream Online content.