Legacy Reserves LP has closed on its previously-announced agreement to purchase an escalating working interest in over 2,680 natural gas wells in the Piceance Basin from WPX Energy. Legacy purchased an initial 29% working interest that steps up to 37% on January 1, 2015, then 41% on January 1, 2016 for $355 million in cash (subject to customary purchase price adjustments) plus a portion of Legacy's newly-created Incentive Distribution Units.
Cary Brown, Chairman, President and Chief Executive Officer of Legacy Reserves GP, LLC, the general partner of Legacy, commented, "Closing this transaction represents a key first step in our exciting strategic alliance with WPX Energy. This acquisition, combined with the ability to complete future transactions with WPX, greatly enhances our goal of delivering long-term unitholder value. We look forward to realizing the benefits of these assets and remain hopeful of the potential of additional transactions together. I would like to thank all of our employees for their hard work during this process and would also like to thank the folks at WPX for all of their work as well."