WPX Energy Earnings Impacted By NGL Sales Moved To Q4

WPX Energy reported worse than expected third quarter earnings after the close Wednesday. $WPX profit was affected by NGL sales with  165,000 barrels placed into storage with a majority to be sold in the fourth quarter.

WPX Energy reported worse than expected third quarter earnings after the close Wednesday. $WPX profit was affected by NGL sales with  165,000 barrels placed into storage with a majority to be sold in the fourth quarter.

WPX Plant

WPX Energy Inc NYSE: WPX Reported Earnings After Close Wednesday

$0.07 Missed $0.09 EPS and $484 M Missed $514 Million forecast in revenue 

Earnings

WPX Energy reported third quarter earnings missed EPS by $0.02,  and missing on revenues with earnings of $0.07 per share, consensus was $0.09; revenues rose 233.8% year/year to $484 mln vs the $514.08 mln consensus.

The timing of the plant’s startup, along with capacity and fractionation constraints with third-party processors, impacted third-quarter NGL volumes by about 4,000 bbl/d. WPX placed about half that amount (165,000 barrels) into storage with a majority to be sold in the fourth quarter.

WPX Energy Inc NYSE: WPX

Market Reaction After hours $15.52 − $0.52 (-3.24%)

Highlights

  • 3Q Delaware oil volumes up 9% vs. most recent quarter
  • 3Q realized prices for Delaware oil reflect benefit of marketing strategy
  • Early Third Bone Spring results comparable to Wolfcamp A performance
  • Williston Otter Woman well posts IP of 4,567 Boe/d (81% oil)
  • Startup of JV gas plant in Delaware Basin paves the way for processing reliability
  • Current oil production approaching 90,000 bbl/d following 3Q close
  • 2019 base capital plan is net cash flow positive; forecasting 25-30% oil growth

WPX Assets

Outlook

  • WPX has tightened its full-year 2018 guidance for oil to 79-82 Mbbl/d and total equivalent production to 123-130 Mboe/d.
  • For 2019, WPX is targeting 25-30 percent year-over-year growth in oil volumes, with expected production of 100-105 Mbbl/d.
  • Total equivalent production for 2019 is estimated at 159-171 Mboe/d.

WPX expects to be net cash flow positive in 2019 using a base capital plan of $1,450-$1,650 million for next year assuming $65 oil (WTI) and $3.00 natural gas. Additionally, WPX has identified another $250-$350 million of discretionary reinvestment opportunities such as rig additions, further midstream buildout, greater participation in non-op wells and land purchases. WPX expects to fund the potential items by monetizing its equity positions in the WhiteWater and Oryx pipeline systems. Actual sales proceeds are expected to exceed the reinvestment opportunities.

Source: WPX

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