Production Ramp Starts in Earnest Following
Quarter Close
- 1Q oil averaged 46,100 bbl/d; current
production ~55,000 bbl/d
- Wolfcamp A Spacing Test Shows
Encouraging Results
- Approaching 10,000 bbls/d on WPX’s new
Delaware Basin oil gathering system
- Permian acreage climbs to approximately
135,000 net acres after closing two transactions
- Wells from Panther transaction
exceeding expectations
- Permian Midstream JV process on track
with agreement expected midyear
- Signs transportation agreement to ship
up to 200,000 MMBtu out of Waha hub
- Grizzly 24-13HG well in Williston hits
peak rate of 3,343 Boe/d (81% oil)
WPX Energy (NYSE:WPX) posted its second consecutive quarterly
high for oil output and reported unaudited first-quarter 2017 net
income available to common shareholders of $88 million, or income
of $0.22 per share on a diluted basis.
First-quarter oil volumes of 46,100 barrels per day has since
been eclipsed by higher rates. Current production is approximately
55,000 bbl/d following the startup of 14 new wells that began
flowback in April.
Oil production also is benefitting from the close of the Panther
bolt-on acquisition in the Delaware Basin and better than expected
performance from its recent wells. Volumes associated with the
acquisition are included in WPX’s guidance for 2017.
“I like how our growth story is unfolding,” said Rick Muncrief,
chairman, president and chief executive officer. “WPX 2.0 is all
about showing what we can do with an oil-focused portfolio that’s
anchored by assets in one of the world’s most prolific plays. The
key to achieving our ambitious goals for the next four years is
continued, fundamental execution.”
RECENT EVENTS
On March 10, WPX completed a previously announced transaction to
acquire Delaware Basin assets from Panther Energy Company II, LLC
and Carrier Energy Partners, LLC. The operations include existing
production, approximately 18,000 net acres, more than 900 gross
undeveloped locations and an existing two-rig program.
During the first quarter, WPX also completed another acquisition
in the Delaware Basin for acreage that is exploratory in nature.
This is a large contiguous area covering approximately 17,900 acres
on a ranch in Culberson County. The purchase price was
approximately $38 million. The terms include a 1-well commitment in
2018, two wells in 2019 and five more in 2020-2021.
Also in the Delaware Basin, WPX already has installed about half
of its planned 50-mile crude oil gathering system in the Stateline
area that initiated service in late 2016. WPX has 27 wells tied in,
with flows approaching 10,000 barrels per day.
WPX is considering a joint venture for the Stateline oil
gathering system and natural gas processing infrastructure. The
evaluation process is on track, with an agreement expected midyear
as planned.
Subsequent to the close of the first quarter, WPX signed an
agreement with a major pipeline company to begin shipping natural
gas from the Waha hub in the Permian Basin to Katy, Texas, in
November of this year. The agreement initially starts with 100,000
MMBtu per day and ramps up to 200,000 MMBtu per day, providing WPX
with multiple sales outlets in the Katy area.
RECENT WELL RESULTS
WPX’s CBR-22 pad successfully tested nine wells at 15
wells-per-section in the upper and lower Wolfcamp A landing zones
using wine-racked spacing. This represents the industry’s most
densely spaced test in the Delaware Basin to date. Initial flowback
started as planned at the end of the first quarter.
The nine wells have 30-day production averaging 1,538 Boe/d (51%
oil) per well during controlled flowback with an initial flowing
tubing pressure of 3,000 PSI per well. Total cumulative production
from the nine wells exceeds 250,000 barrels of oil to date. The
highest single well peak rate so far is 2,193 Boe/d (50% oil).
Early time production data and downhole pressure gauges in each
well indicate minimal communication. WPX continues to monitor
production, pressures and will conduct interference tests in the
coming months.
Three 1-mile laterals in the Wolfcamp A interval associated with
the newly acquired Panther operations in the first quarter are
tracking above the original offset well that has a projected type
curve of 1 million barrels of oil. These three wells are in central
Reeves County.
The Mac State 20-1H well had a peak rate of 2,328 Boe/d and
30-day production averaging 2,234 Boe/d (56% oil). The Fiver State
18-1H well had a peak rate of 2,073 Boe/d and 30-day production
averaging 1,914 Boe/d (55% oil). The Titan State 16-1H well had a
peak rate of 2,086 Boe/d with 30-day production averaging 1,987
Boe/d (53% oil).
In the Williston Basin, WPX completed nine two-mile laterals on
three pads during the first quarter. The highest peak rate among
the nine was 3,343 Boe/d (81% oil) on the Grizzly 24-13HG well.
The three wells on the Grizzly pad had a combined average peak
of 2,806 Boe/d during initial flowback, along with 30-day
production averaging 1,703 Boe/d per well. Three wells on the
Caribou pad had a combined average peak of 2,885 Boe/d along with
30-day production averaging 2,145 Boe/d per well. The three wells
on the Behr pad had a combined average peak of 1,977 Boe/d along
with 30-day production averaging 1,375 Boe/d per well. These nine
wells averaged 80 percent oil.
WPX’s first San Juan Basin completion of 2017– the 713H in the
northeast portion of the West Lybrook unit – posted initial
production of 1,410 Boe/d (74% oil).
1Q FINANCIAL RESULTS
Oil and NGL sales of $209 million accounted for 83 percent of
WPX’s first-quarter 2017 total product revenues of $253 million.
Quarterly oil sales grew by 94 percent vs. the same period a year
ago driven by higher average prices and production volumes.
WPX’s first-quarter 2017 net income of $88 million was primarily
driven by $203 million of net gains associated with its hedge book
that resulted from forward commodity price decreases.
Cash operating expenses – excluding exploration and DD&A –
were 7 percent higher vs. the first quarter a year ago due to
increased production volumes, but general and administrative
expenses decreased 19 percent.
The adjusted net loss from continuing operations (a non-GAAP
financial measure that excludes certain items typically excluded
from published analyst estimates) in the first quarter was $59
million, or a loss of $0.15 per share. Adjusted EBITDAX (a non-GAAP
financial measure) for the first quarter was $115 million.
Reconciliations for non-GAAP financial measures are available in
the tables that accompany this press release.
The weighted average gross sales price – prior to revenue
deductions – was $46.38 per barrel for oil, $3.01 for natural gas
and $22.14 per barrel for NGL during first-quarter 2017.
Subsequent to the close of the first quarter, WPX’s borrowing
base under its credit facility increased to $1.2 billion from
$1.025 billion following the semi-annual redetermination process.
WPX’s current liquidity is now approximately $1.3 billion,
including unrestricted cash and cash equivalents.
Cash flow from operations of $22 million in first-quarter 2017
was impacted by the timing of interest payments and the payout of
the company’s annual incentive program.
1Q PRODUCTION
Total company production volumes of 90.0 Mboe/d in first-quarter
2017 were up 1 percent vs. fourth-quarter 2016 and 12 percent
higher than the same period a year ago. Liquids volumes accounted
for 64 percent of first-quarter 2017 production.
First quarter oil volumes of 46,100 barrels per day represent a
new quarterly high for WPX. Oil volumes were 3 percent higher than
the most recent quarter and 11 percent higher vs. the same period a
year ago.
As previously announced, WPX expects to grow oil volumes by 30
percent this year vs. 2016. First-quarter volumes were expected to
be relatively flat compared to fourth-quarter 2016 based on the
timing of anticipated first sales, which is driven by pad drilling
and the batching of completions.
WPX completed 25 gross operated wells (23.81 net) in its three
basins during first-quarter 2017 and participated in another four
gross (0.76 net) non-operated wells in the Delaware Basin.
Average Daily Production
1Q 4Q Sequential 2017
2016 Change
2016 Change
Oil (Mbbl/d)
Delaware Basin 13.6 12.0 13% 12.0 13% Williston Basin 25.3 21.8 16%
24.0 5% San Juan Basin 7.2 7.5 -4% 8.7 -17% Other
0.0 0.2 NM 0.0 0%
Subtotal (Mbbl/d) 46.1 41.5 11% 44.7 3%
NGLs (Mbbl/d)
Delaware Basin 5.7 1.9 200% 4.5 27% Williston Basin 2.1 2.0 5% 2.4
-13% San Juan Basin 3.4 3.8 -11% 3.7 -8% Other
0.1 0.1 0% 0.1 0%
Subtotal (Mbbl/d) 11.3 7.8 45% 10.7 6%
Natural gas
(MMcf/d) Delaware Basin 58 21 176% 52 12% Williston Basin 12 13
-8% 14 -14% San Juan Basin 110 131 -16% 117 -6% Other
16 20 -20% 17 -6%
Subtotal (MMcf/d) 196 185 6% 200 -2%
Total Production
(Mboe/d) 90.0 80.1 12% 88.7
1%
Note: 1Q 2016 NGL and natural gas volumes in the Delaware Basin
were negatively impacted by an outage at a third-party gas
processing plant.
For the remainder of 2017, WPX has 39,392 barrels per day of oil
hedged at a weighted average price of $50.84 per barrel. WPX also
has 170,000 MMBtu per day of natural gas hedged at a weighted
average price of $3.02 per MMBtu.
For 2018, WPX has 42,000 barrels per day of oil hedged at a
weighted average price of $54.36 per barrel. WPX also has
185,000 MMBtu per day of natural gas hedged at a weighted average
price of $2.98 per MMBtu.
DELAWARE BASIN SUMMARY
WPX operates in the core of the Permian’s world-class Delaware
Basin where the company has more than 6,400 gross drillable
locations following the completion of the Panther bolt-on
acquisition in the first quarter. Following the transaction, WPX
has seven rigs in the basin.
WPX’s total Delaware production averaged 28.9 Mboe/d in the
first quarter, up 15 percent vs. fourth-quarter 2016. First-quarter
Delaware oil production rose 13 percent vs. the most recent
quarter.
In the first quarter, WPX brought 12 Wolfcamp A 1-mile laterals
online – including four from the Panther operations – and two
vertical DUCs from a prior bolt-on acquisition in 2016. WPX also is
completing a 2-mile Wolfcamp A lateral from the Panther properties
and is in the process of bringing its fourth and fifth Wolfcamp D
wells online.
WPX spud 20 Delaware wells in the first quarter, including three
wells associated with the Panther operations. The spuds include 14
Wolfcamp A wells, four Wolfcamp D wells, a Wolfcamp C well and a
well in the Third Bone Spring Lime interval. Nine of the spuds were
long laterals ranging from 1.5 to 2 miles.
Of the first-quarter spuds, the CBR 6-7B-3H Wolfcamp A 2-mile
lateral currently ranks as the longest single run, conventionally
drilled slim-hole lateral in Loving County, Texas. The new record
is 10,580 feet.
Additionally, the Lindsay 10-15G-20H is WPX’s first Wolfcamp C
well, scheduled for completion in June.
WILLISTON BASIN SUMMARY
WPX’s Williston Basin production comes from the Bakken and Three
Forks formations. Approximately 85 percent of the production stream
is oil.
WPX has two rigs deployed in the basin. The company spud 11
Williston wells in the first quarter, including three Bakken wells
and eight Three Forks wells. All of WPX’s first-quarter 2017 spuds
and completions in the Williston were two-mile laterals.
The company’s first-quarter oil production in the Williston rose
5 percent to 25,300 barrels per day vs. fourth-quarter 2016 driven
by volumes from nine new completions (five in the Bakken and four
in the Three Forks).
Overall Williston Basin production averaged 29.4 Mboe/d in the
first quarter, up 2 percent vs. 28.8 Mboe/d in the fourth quarter
and 13 percent above results for the first quarter a year ago.
On April 17, WPX recorded its single-day high for oil output in
the Williston Basin with 29,000 barrels for the day, surpassing the
company’s previous daily high of nearly 27,100 barrels of oil on
Nov. 27, 2014, when it had five rigs operating in the basin.
Starting this month, WPX expects to realize an improvement on
netbacks for its Williston oil volumes as the Dakota Access
Pipeline begins deliveries. WPX estimates an improvement of
$2.00-$2.50 per barrel vs. 2016 basis differentials.
SAN JUAN BASIN SUMMARY
WPX produces oil in the southern end of the San Juan Basin from
the Gallup Sandstone and has a legacy natural gas position in the
northern end of the basin, including considerable dry Mancos
upside.
San Juan Basin production averaged 28.8 Mboe/d in the first
quarter, down 10 percent vs. 31.9 Mboe/d in fourth-quarter
2016.
WPX has one rig deployed in the basin performing batch drilling
on multi-well pads, including a two-well pad and WPX’s second and
third six-well pads in the West Lybrook unit.
Five of the 14 new wells started flowback in April. Two more are
scheduled to begin producing in May, with the balance set for
production at the end of the second quarter.
WPX’s recent San Juan drilling includes its first two laterals
in the basin exceeding 10,000 feet. One of the laterals represents
a new WPX company-wide record for lateral length drilled in a
24-hour period – 6,258 feet.
WPX’s first six-well pad in West Lybrook now has 240-day
cumulative production of more than 1.3 million Boe (70% oil), which
represents an average of more than 900 Boe/d per well.
THURSDAY WEBCAST
The company’s next webcast takes place on May 4 beginning at 10
a.m. Eastern. Investors are encouraged to access the event and the
corresponding slides at www.wpxenergy.com.
A limited number of phone lines also will be available at (844)
215-3288. International callers should dial (615) 247-5915. The
conference identification code is 6860949.
UPCOMING CONFERENCE PRESENTATION
WPX Chief Operating Officer Clay Gaspar is scheduled to speak at
the Citi 2017 Global Energy and Utilities Conference on Thursday,
May 11, at 11 a.m. Eastern. Please visit www.wpxenergy.com on the
day of the event to confirm the time, see the slides and listen to
the discussion.
FORM 10-Q
WPX plans to file its first-quarter 2017 Form 10-Q with the
Securities and Exchange Commission this week. Once filed, the
document will be available on the SEC and WPX websites.
ABOUT WPX ENERGY, INC.
WPX has posted double-digit oil volume growth each of the past
five years. The company is active in the Delaware, Williston
and San Juan basins. The Delaware Basin is the western
portion of the greater Permian Basin.
This press release includes “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical facts,
included in this press release that address activities, events or
developments that the company expects, believes or anticipates will
or may occur in the future are forward-looking statements. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the company.
Statements regarding future drilling and production are subject to
all of the risks and uncertainties normally incident to the
exploration for and development and production of oil and gas.
These risks include, but are not limited to, the volatility of oil,
natural gas and NGL prices; uncertainties inherent in estimating
oil, natural gas and NGL reserves; drilling risks; environmental
risks; and political or regulatory changes. Investors are cautioned
that any such statements are not guarantees of future performance
and that actual results or developments may differ materially from
those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the
date of this press release, even if subsequently made available by
WPX Energy on its website or otherwise. WPX Energy does not
undertake and expressly disclaims any obligation to update the
forward-looking statements as a result of new information, future
events or otherwise. Investors are urged to consider carefully the
disclosure in our filings with the Securities and Exchange
Commission, available from us at WPX Energy, Attn: Investor
Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s
website at www.sec.gov.
Additionally, the SEC requires oil and gas companies, in filings
made with the SEC, to disclose proved reserves, which are those
quantities of oil and gas, which, by analysis of geoscience and
engineering data, can be estimated with reasonable certainty to be
economically producible – from a given date forward, from known
reservoirs, under existing economic conditions, operating methods,
and governmental regulations. The SEC permits the optional
disclosure of probable and possible reserves. From time to time, we
elect to use “probable” reserves and “possible” reserves, excluding
their valuation. The SEC defines “probable” reserves as “those
additional reserves that are less certain to be recovered than
proved reserves but which, together with proved reserves, are as
likely as not to be recovered.” The SEC defines “possible” reserves
as “those additional reserves that are less certain to be recovered
than probable reserves.” The Company has applied these definitions
in estimating probable and possible reserves. Statements of
reserves are only estimates and may not correspond to the ultimate
quantities of oil and gas recovered. Any reserve estimates provided
in this presentation that are not specifically designated as being
estimates of proved reserves may include estimated reserves not
necessarily calculated in accordance with, or contemplated by, the
SEC’s reserves reporting guidelines. Investors are urged to
consider closely the disclosure in our SEC filings that may be
accessed through the SEC’s website at www.sec.gov.
The SEC’s rules prohibit us from filing resource estimates. Our
resource estimations include estimates of hydrocarbon quantities
for (i) new areas for which we do not have sufficient information
to date to classify as proved, probable or even possible reserves,
(ii) other areas to take into account the low level of certainty of
recovery of the resources and (iii) uneconomic proved, probable or
possible reserves. Resource estimates do not take into account the
certainty of resource recovery and are therefore not indicative of
the expected future recovery and should not be relied upon.
Resource estimates might never be recovered and are contingent on
exploration success, technical improvements in drilling access,
commerciality and other factors.
WPX Energy, Inc.
Consolidated (GAAP) (UNAUDITED) 2016 2017 (Dollars in
millions) 1st Qtr 2nd Qtr
3rd Qtr 4th Qtr YTD
1st Qtr
Revenues: Product
revenues: Oil sales $ 97 $ 142 $ 139 $ 173 $ 551 $ 188 Natural gas
sales 25 24 37 39 125 44 Natural gas liquid sales 5
10 12
19 46
21 Total product revenues 127 176 188 231 722 253 Net
gain (loss) on derivatives 57 (154 ) 38 (148 ) (207 ) 203 Gas
management 31 116 25 5 177 5 Other 1
- -
- 1 - Total
revenues 216 138 251 88 693 461 Costs and expenses:
Depreciation, depletion and amortization 152 163 150 158 623 147
Lease and facility operating 42 41 40 40 163 48 Gathering,
processing and transportation 16 20 19 21 76 21 Taxes other than
income 11 16 14 19 60 19 Exploration 9 12 10 11 42 39 General and
administrative 53 55 51 55 214 43 Gas management 39 132 31 6 208 5
Net (gain) loss on sales of assets and divestment of transportation
contracts (198 ) (4 ) 227 (3 ) 22 (35 ) Other-net 2
2 10
2 16 4
Total costs and expenses 126 437 552 309 1,424 291
Operating income (loss) 90 (299 )
(301 ) (221 ) (731 )
170 Interest expense (57 ) (53 ) (49 ) (48 ) (207 )
(47 )
Investment income and other
2 (1 ) -
- 1
2 Income (loss) from continuing operations before
income taxes $ 35 $ (353 ) $ (350 ) $ (269 ) $ (937 ) $ 125
Provision (benefit) for income taxes 35
(130 ) (132 ) (98
) (325 ) 31
Income (loss)
from continuing operations $ - $
(223 ) $ (218 ) $
(171 ) $ (612 ) $
94 Income (loss) from discontinued operations (12 )
25 (1 )
(1 ) 11 (2 )
Net income (loss) $ (12 ) $
(198 ) $ (219 ) $
(172 ) $ (601 ) $
92 Less: Dividends on preferred stock 5 6 4 3 18 4 Less:
Loss on induced conversion of preferred stock -
- 22
- 22 -
Net income (loss) available to WPX Energy, Inc. common
stockholders $ (17 )
$ (204 ) $ (245
) $ (175 )
$ (641 ) $ 88 Amounts
available to WPX Energy, Inc. common stockholders: Income
(loss) from continuing operations $ (5 ) $ (229 ) $ (244 ) $ (174 )
$ (652 ) $ 90 Income (loss) from discontinued operations (12
) 25 (1 )
(1 ) 11 (2 )
Net income (loss) $ (17 )
$ (204 ) $ (245
) $ (175 )
$ (641 ) $ 88
Summary of Production Volumes
(1) Oil (MBbls) 3,774 3,719 3,576 4,108 15,178 4,149 Natural
gas (MMcf) 16,820 18,764 18,845 18,414 72,842 17,605 Natural gas
liquids (MBbls) 708 909 1,047 981 3,645 1,015 Combined equivalent
volumes (MBoe)
(2) 7,285 7,755 7,764 8,159 30,963 8,098
Per day volumes Oil (MBbls/d) 41.5 40.9 38.9 44.7 41.5 46.1
Natural gas (MMcf/d) 185 206 205 200 199 196 Natural gas liquids
(MBbls/d) 7.8 10.0 11.4 10.7 10.0 11.3 Combined equivalent volumes
(Mboe/d)
(2) 80.1 85.2 84.4 88.7 84.6 90.0
(1) Excludes activity classified as
discontinued operations.
(2) Mboe is converted using the
ratio of one barrel of oil, condensate or natural gas liquids to
six thousand cubic feet of natural gas.
Realized average price per unit
(1) Oil (per barrel) $ 25.62 $ 38.38 $ 38.71 $ 42.18 $ 36.31 $
45.31 Natural gas (per Mcf) $ 1.52 $ 1.23 $ 1.97 $ 2.13 $ 1.72 $
2.51 Natural gas liquids (per barrel) $ 7.14 $ 11.21 $ 11.50 $
18.54 $ 12.48 $ 20.85
(1) Excludes activity classified as
discontinued operations.
Expenses per Boe (1) Depreciation,
depletion and amortization $ 20.93 $ 21.02 $ 19.30 $ 19.27 $ 20.11
$ 18.11 Lease and facility operating $ 5.74 $ 5.34 $ 5.07 $ 4.93 $
5.26 $ 5.87 Gathering, processing and transportation $ 2.17 $ 2.57
$ 2.51 $ 2.54 $ 2.45 $ 2.65 Taxes other than income $ 1.47 $ 2.05 $
1.84 $ 2.37 $ 1.94 $ 2.31 General and administrative $ 7.34 $ 7.09
$ 6.50 $ 6.71 $ 6.90 $ 5.27 Interest expense $ 7.89 $ 6.72 $ 6.40 $
5.87 $ 6.69 $ 5.75
(1) Excludes activity classified as
discontinued operations.
WPX Energy, Inc.
Reconciliation of Adjusted EPS and EBITDAX (NON-GAAP)
(UNAUDITED) 2016 2017 (Dollars in millions, except per share
amounts) 1st Qtr 2nd Qtr
3rd Qtr 4th Qtr Year
1st Qtr
Income (loss) from
continuing operations available to WPX Energy, Inc. common
stockholders $ (5 ) $ (229 ) $ (244
) $ (174 ) $ (652 ) $ 90
Income (loss) from continuing operations - diluted earnings per
share $ (0.02 ) $ (0.76 ) $ (0.72 )
$ (0.51 ) $ (2.08 ) $ 0.22
Pre-tax adjustments: Impairments reported in exploration
expense $ - $ - $ - $ - $ - $ 23 Impairments- exploratory related
and inventory $ - $ - $ 4 $ - $ 4 $ - Net (gain) loss on sales of
assets and divestment of transportation contracts $ (198 ) $ (4 ) $
227 $ (3 ) $ 22 $ (35 ) Accrual for Denver office lease $ - $ - $ 5
$ - $ 5 $ - Costs related to severance and relocation $ 3 $ 7 $ 3 $
2 $ 15 $ - Previously capitalized costs expensed following credit
facility amendment $ 4 $ - $ - $ - $ 4 $ - (Gain) loss on
retirement of debt $ (3 ) $ 3 $ - $ 1 $ 1 $ - Unrealized MTM (gain)
loss $ 76 $ 223 $ 20
$ 190 $ 509 $ (208
)
Total pre-tax adjustments $ (118 ) $ 229 $ 259 $ 190 $ 560
$ (220 ) Less tax effect for above items $ 43 $ (85 ) $ (96 ) $ (71
) $ (208 ) $ 83 Impact of state deferred tax rate change $ 14 $ - $
- $ 1 $ 15 $ (6 ) Impact of state tax valuation allowance $ 8 $ - $
- $ - $ 8 $ (6 ) Loss on induced conversion of preferred stock $ -
$ - $ 22
$ - $ 22 $ -
Total
after-tax adjustments $ (53 ) $ 144
$ 185 $ 120 $ 397
$ (149 )
Adjusted loss from continuing operations
available to common stockholders $ (58 ) $ (85 )
$ (59 ) $ (54 ) $ (255 )
$ (59 )
Adjusted diluted loss per common share $ (0.21 )
$ (0.28 ) $ (0.17 ) $
(0.16 ) $ (0.82 ) $ (0.15 )
Diluted
weighted-average shares (millions) 276.1 300.7 341.5 344.6
313.3
410.4
Adjusted diluted weighted-average shares (millions) (1)
276.1 300.7 341.5 344.6 313.3 386.3 (1) Adjusted diluted
weighted-average shares excludes the impact of dilutive securities
due to the adjusted loss from continuing operations available to
common stockholders for the period.
Adjusted EBITDAX Reconciliation to net income (loss):
Net income (loss) $ (12 ) $ (198 ) $ (219 ) $ (172 ) $ (601 ) $ 92
Interest expense 57 53 49 48 207 47 Provision (benefit) for income
taxes 35 (130 ) (132 ) (98 ) (325 ) 31 Depreciation, depletion and
amortization 152 163 150 158 623 147 Exploration expenses 9
12 10
11 42
39
EBITDAX 241 (100
) (142 ) (53 ) (54
) 356 Accrual for Denver office lease - - 5 - 5 - Net
(gain) loss on sales of assets and divestment of transportation
contracts (198 ) (4 ) 227 (3 ) 22 (35 ) Impairment of inventory - -
4 - 4 - Net (gain) loss on derivatives (57 ) 154 (38 ) 148 207 (203
) Net cash received (paid) related to settlement of derivatives 133
69 58 42 302 (5 ) (Income) loss from discontinued operations
12 (25 ) 1
1 (11 ) 2
Adjusted EBITDAX $ 131
$ 94 $ 115
$ 135
$ 475 $ 115
WPX Energy, Inc. Consolidated Statements of
Operations (Unaudited)
Three months ended March 31, 2017 2016
(Millions, except per share
amounts)
Revenues: Product revenues: Oil sales $ 188 $ 97 Natural gas
sales 44 25 Natural gas liquid sales 21 5
Total product revenues 253 127 Net gain on derivatives 203
57 Gas management 5 31 Other - 1 Total
revenues 461 216 Costs and expenses:
Depreciation, depletion and amortization 147 152 Lease and facility
operating 48 42 Gathering, processing and transportation 21 16
Taxes other than income 19 11 Exploration 39 9 General and
administrative (including equity-based compensation of $7 million
and $6 million for the respective periods) 43 53 Gas management 5
39 Net gain on sales of assets (35 ) (198 ) Other - net 4
2 Total costs and expenses 291
126 Operating income 170 90 Interest expense
(47 ) (57 ) Investment income and other 2 2
Income from continuing operations before income taxes 125 35
Provision for income taxes 31 35 Income
from continuing operations 94 - Loss from discontinued operations
(2 ) (12 ) Net income (loss) 92 (12 ) Less: Dividends
on preferred stock 4 5 Net income
(loss) available to WPX Energy, Inc. common stockholders $ 88
$ (17 )
Amounts available to WPX Energy, Inc.
common stockholders: Income (loss) from continuing operations $
90 $ (5 ) Loss from discontinued operations (2 ) (12
) Net income (loss) $ 88 $ (17 )
Basic earnings
(loss) per common share: Income (loss) from continuing
operations $ 0.23 $ (0.02 ) Loss from discontinued operations
- (0.04 ) Net income (loss) $ 0.23 $
(0.06 ) Basic weighted-average shares (millions) 386.3 276.1
Diluted earnings (loss) per common share: Income
(loss) from continuing operations $ 0.22 $ (0.02 ) Loss from
discontinued operations - (0.04 ) Net income
(loss) $ 0.22 $ (0.06 ) Diluted weighted-average
shares (millions)
410.4
276.1
WPX Energy, Inc. Consolidated Balance
Sheets (Unaudited)
March 31, 2017 December 31, 2016 ASSETS
(Millions) Current assets: Cash and cash equivalents $ 142 $
496 Accounts receivable, net of allowance of $1 million as of March
31, 2017 and $3 million as of December 31, 2016 170 168 Derivative
assets 59 26 Inventories 35 36 Assets classified as held for sale -
8 Other 22 20 Total current assets 428
754 Properties and equipment (successful efforts method of
accounting) 9,976 8,929 Less: Accumulated depreciation, depletion
and amortization (2,581 ) (2,455 ) Properties and
equipment, net 7,395 6,474 Derivative assets 65 12 Other noncurrent
assets 22 24 Total assets $ 7,910
$ 7,264
LIABILITIES AND EQUITY Current
liabilities: Accounts payable $ 294 $ 222 Accrued and other current
liabilities 217 301 Liabilities associated with assets held for
sale - 2 Derivative liabilities 77 152
Total current liabilities 588 677 Deferred income taxes 281 251
Long-term debt, net 2,575 2,575 Derivative liabilities 17 63 Asset
retirement obligations 101 100 Other noncurrent liabilities 126 132
Equity: Stockholders' equity: Preferred stock (100 million
shares authorized at $0.01 par value; 4.8 million shares
outstanding at March 31, 2017 and December 31, 2016) 232 232 Common
stock (2 billion shares authorized at $0.01 par value; 397.6
million shares and 344.7 million shares issued and outstanding at
March 31, 2017 and December 31, 2016) 4 3 Additional
paid-in-capital 7,466 6,803 Accumulated deficit (3,480 )
(3,572 ) Total stockholders' equity 4,222
3,466 Total liabilities and equity $ 7,910 $
7,264
WPX Energy, Inc. Consolidated
Statements of Cash Flows (Unaudited)
Three months ended March 31,
2017 2016 (Millions) Operating
Activities(a) Net income (loss) $ 92 $ (12 ) Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: Depreciation, depletion and amortization 147 161
Deferred income tax provision 30 34 Provision for impairment of
properties and equipment (including certain exploration expenses)
38 9 Net gain on derivatives in continuing operations (203 ) (57 )
Net settlements related to derivatives in continuing operations (5
) 133 Net loss on derivatives included in discontinued operations -
20 Amortization of stock-based awards 7 7 Gain on extinguishment of
debt - (3 ) Net gain on sales of assets (35 ) (198 ) Cash
provided (used) by operating assets and liabilities: Accounts
receivable (14 ) 117 Inventories 2 4 Margin deposits and customer
margin deposits payable - 2 Other current assets 2 - Accounts
payable 29 (26 ) Federal income taxes receivable (payable) 12 (33 )
Accrued and other current liabilities (76 ) (128 ) Payments on
liabilities accrued in 2015 for retained transportation and
gathering contracts related to discontinued operations (11 ) (10 )
Other, including changes in other noncurrent assets and liabilities
7 (1 ) Net cash provided by operating
activities (a) 22 19
Investing Activities(a) Capital expenditures(b) (237 ) (185
) Proceeds from sales of assets 8 281 Purchase of business, net of
cash acquired (802 ) - Other (2 ) (1 ) Net cash
provided by (used in) investing activities (a) (1,033 )
95
Financing Activities Proceeds from
common stock 671 1 Dividends paid on preferred stock (4 ) (5 )
Borrowings on credit facility - 370 Payments on credit facility -
(460 ) Taxes paid for shares withheld (10 ) (3 ) Payments for
retirement of long-term debt - (48 ) Payments for credit facility
amendment fees - (3 ) Other - 7 Net
cash provided by (used in) financing activities 657
(141 ) Net decrease in cash and cash equivalents (354
) (27 ) Cash and cash equivalents at beginning of period 496
38 Cash and cash equivalents at end of period
$ 142 $ 11
__________
(a) Amounts reflect continuing and discontinued operations unless
otherwise noted. (b) Increase to properties and equipment $ (280 )
$ (170 ) Changes in related accounts payable and accounts
receivable 43 (15 ) Capital expenditures $
(237 ) $ (185 )
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170503006447/en/
WPX Energy, Inc.Media Contact:Kelly Swan,
539-573-4944orInvestor Contact:David Sullivan,
539-573-9360
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