WPX issued $1.2 billion in debt and another $300 million in convertible preferred stock to help cover the cash needed to close its $2.35 billion cash-and-stock deal for RKI, which gave WPX an entry into the Delaware sub-basin of the Permian.
“As disclosed in our Form 10-Q for the quarter ended September 30, 2015, this increased leverage – along with the lower commodity price environment in which our industry finds itself – resulted in our establishing goals for debt reduction via asset sales in 2015 and 2016 and in considering options for unlocking the value of our assets in the Piceance Basin,” WPX said in a filing with US Securities Regulators.
