June 13, 2017 / 10:35 AM / a month ago

BRIEF-WPX agrees to form JV to develop Permian midstream assets

2 Min Read

June 13 (Reuters) - Wpx Energy Inc

* WPX agrees to form JV to develop Permian midstream assets

* WPX to receive $300mm cash, $132mm capital carry and retain 50 pct ownership in $850mm+ entity at closing

* WPX secured additional takeaway capacity for its Delaware Basin natural gas volumes and an equity position in related pipeline

* Howard Energy Partners will finish constructing JV assets and serve as operator

* Transaction implies a value of $863 million for stateline oil gathering and gas processing projects

* Howard Energy Partners to fund first $263 million of JV capital expenditures, including a $132 million carry for co

* WPX has a 50 percent voting interest in joint venture and operational influence

* Parties expect to complete first 200 MMCF/D train for cryogenic natural gas processing complex in first half of 2018

* Trunkline is designed to have a capacity of approximately 125,000 barrels of oil per day

* Parties plan to add a second train to double capacity for cryogenic natural gas processing complex by middle of 2019 Source text for Eikon: Further company coverage:

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