WPX Energy to Shed Colorado Assets

Oil and gas producer WPX Energy Inc said it would sell natural gas assets in Colorodo's Piceance basin for $910 million to boost its liquidity amid a prolonged slump in oil prices.

WPX said its unit, WPX Energy Rocky Mountain LLC, will be bought by Terra Energy Partners LLC, a private company owned by investment manger Kayne Anderson and private equity firm Warburg Pincus.

WPX Energy Rocky Mountain holds assets that include about 200,000 net acres, with net production of about 500 million cubic feet equivalent per day.

WPX Energy, which is focused on its operations in Texas's Permain basin, expects oil to comprise about half of its production volumes going forward, up from roughly 20 percent during 2015.

Terra will also get more than $90 million of natural gas hedges and, in exchange, assume about $100 million of WPX Energy's transportation obligations.

Terra has secured $800 million of equity commitment from existing investor Kayne and new investor Warburg Pincus, to fund the deal, which is expected to close in the second quarter.

WPX Energy's stock closed at $4.52 on Tuesday, easing off a record low of $2.53 hit on Jan. 20.

Reporting by Anet Josline Pinto