WPX Increases Delaware Basin Inventory with Bolt-On Acquisition

Tulsa, OK (January 12, 2017) –WPX Energy (NYSE: WPX) announced today that it has agreed to acquire assets that would increase its Permian operations to more than 120,000 net acres and deepen its drilling inventory of top-tier Delaware locations while enhancing key financial metrics and margin expansion.

The acquisition includes approximately 6,500 Boe/d (55% oil) of existing production from 23 producing wells (17 horizontals), two drilled but uncompleted horizontal laterals, 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin. WPX expects the acquisition to be immediately accretive and accelerate its deleveraging progress without increasing its projected 2017 capital outspend.

WPX expects the incremental cash flow from the purchase to fund the existing two-rig program on the acquired acreage. This will bring WPX’s rig count in the Permian to seven. The sellers are Panther Energy Company II, LLC and Carrier Energy Partners, LLC. WPX plans to close the $775 million cash transaction in approximately 60 days using a combination of proceeds from an equity issuance and cash on hand.

ACQUISITION HIGHLIGHTS

• Expected to be immediately accretive to WPX shareholders on a cash flow and NAV basis
• Projected IRR on wells ranging from 55%-95% at current strip pricing
• Estimated acreage cost excluding flowing production is ~ $28,500 per acre
• Transaction valued primarily on three zones with upside in five additional zones
• EUR’s of ~ 1.0 MMBoe for Wolfcamp A and X/Y 1-mile laterals (55% oil)
• Increases WPX’s total gross drillable Delaware locations from ~5,500 to ~6,400
• New drillable locations include more than 150 long laterals (1.5-2 miles)
• Increases WPX’s growth trajectory for 2017-2020
• Offset operators: RSP Permian, Anadarko, Shell, Matador, Cimarex, Concho and Centennial.

Including the Panther transaction, WPX has added approximately 32,000 net acres in the core of the Delaware Basin at an average cost of $18,600 per acre since its transformative purchase of RKI Exploration and Production in August 2015. The average cost excludes flowing production.

“In just 18 months, WPX has firmly established itself as a leader in the Delaware Basin,” said Rick Muncrief, WPX chairman, president and chief executive officer.

“The acquisition leverages our experience to create long-term shareholder value, further builds our inventory of core acreage and accelerates our oil growth with cash on hand and operating cash flow without adding incremental debt,” Muncrief added.

On a pro forma basis, WPX is now targeting 30 percent oil growth and 25 percent overall production growth in 2017, along with a targeted net debt/EBITDAX ratio at the lower end of the company’s previously announced range of 2.0x to 2.5x by year-end 2018.

A presentation with pro forma guidance, capital spending and operating plans is available at www.wpxenergy.com. The forecast targets 52,000-56,000 barrels of oil per day in 2017. This estimate includes nine months of production associated with the bolt-on purchase.

WPX also is reaffirming its full-year 2016 production guidance and announcing that its fourth-quarter 2016 oil production is expected to exceed the company’s 42-44 Mbbl/d range, despite recent weather conditions in North Dakota’s Williston Basin. Additionally, WPX’s 2017 guidance remains unchanged prior to the pro forma impact of the bolt-on acquisition.

Tudor, Pickering, Holt & Co. acted as financial advisor to WPX on the Panther and Carrier bolt-on transaction.

Panther is a Tulsa-based E&P company run by Chief Executive Officer Berry Mullennix and Chief Operating Officer Roy Grossman.