- Oil volumes reached a new high of
41,500 barrels per day in 1Q
- Delaware oil volumes jump 32 percent in
Permian vs. sequential quarter
- Lindsay 2-4H Wolfcamp A well posts
24-hour IP of 2,060 Boed at 3,700 PSI
- Haley 36-1H Wolfcamp A well has 120-day
production of 121 Mboe (73% oil)
- 6-well Williston Basin pad has 24-hour
IP of 14,985 Boed (83% oil)
WPX Energy (NYSE: WPX) announced today that it is increasing its
estimated ultimate recoveries (EURs) for its Delaware Basin wells
in the Permian to 900 Mboe, up 34 percent from its acquisition type
curve of 670 Mboe.
The company plans to increase its rig count in the Delaware from
two to three during the second half of the year without increasing
its capital budget. WPX’s guidance for total drilling and
completion (D&C) capital for 2016 remains unchanged at $350
million to $450 million. Based on improving well costs and
productivity, WPX believes it can generate returns in excess of 40
percent in the Delaware Basin at current commodity prices.
WPX has made rapid progress toward its vision for Wolfcamp A
wells in the Delaware Basin. The company expects D&C costs –
including facilities and artificial lift – to approach $5.3 million
per well during the second quarter, down from $6 million at the end
of 2015 and from $7 million at the time of WPX’s acquisition of RKI
Exploration & Production last summer. The $5.3 million
projection includes larger completions using 2,000 pounds of sand
per foot.
In the Williston Basin, WPX is now recognizing a blended type
curve of 850 Mboe for its wells in the Middle Bakken and Three
Forks formations, up 13 percent from previous estimates of 750
Mboe. Current D&C costs – including facilities and artificial
lift – are approximately $5.9 million per well, down from $8.5
million in the first quarter a year ago.
“We accomplished a great deal this quarter and delivered solid
results, despite challenging commodity prices,” said Rick Muncrief,
President and CEO. “Our transformation is on track, evidenced by
lower operating costs, record oil volumes, higher EURs, the close
of two more asset sales and stronger liquidity. We also have
retired debt early and will continue to manage our balance sheet in
a responsible manner.
“I’m very proud of how our organization is executing in all
three of our asset areas. At current strip pricing, they each
deliver attractive returns. Continuous improvement is the norm, not
the exception. We can leverage this momentum as we start to
accelerate our development in the Delaware Basin,” Muncrief
added.
1Q FINANCIAL RESULTS
WPX reported an unaudited first-quarter 2016 net loss
attributable to common shareholders of $17 million, or a loss of
$0.06 per share on a diluted basis, including a $198 million gain
on the sale of assets.
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 $0.21 per share. Adjusted EBITDAX (a non-GAAP
financial measure) for the first quarter was $131 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 – for oil decreased 30 percent vs. a year ago to $26.78
per barrel in first-quarter 2016. Natural gas prices decreased 39
percent to $1.77 per Mcf. NGL prices decreased 36 percent to $11.60
per barrel.
Oil revenues of $97 million accounted for more than 75 percent
of total product revenues in a quarter for the first time. Total
product revenues were $127 million in first-quarter 2016. Prior to
WPX’s reclassification of its Piceance results to discontinued
operations, oil revenues comprised 44 percent of total product
revenues in full-year 2015.
WPX’s total liquidity at the close of business on May 3 was
approximately $1.6 billion, consisting of $1.025 billion in undrawn
capacity on the company’s revolving credit facility that was
amended in March and approximately $580 million in unrestricted
cash and cash equivalents.
WPX completed the previously announced sales of its San Juan
Basin gathering system in March and its Piceance subsidiary in
April for approximately $1.2 billion combined. The company applied
a portion of these funds for debt reduction to repay borrowings on
its revolver and to repurchase 29 percent of its outstanding 5.250
percent senior notes due in 2017.
OPERATIONS UPDATE
Total company production volumes were 80.1 Mboe per day in the
first quarter. Oil volumes accounted for 52 percent of production,
reaching a new company best of 41,500 barrels per day. Total
liquids accounted for 62 percent of production.
WPX’s commodity mix has shifted dramatically following the
acquisition of Delaware Basin properties in the Permian last year
and the recent sale of its Piceance Basin subsidiary.
Prior to the Piceance divestiture, natural gas volumes accounted
for 70 percent of WPX’s production a year ago. The results of
Piceance Basin operations, including associated production volumes,
have been reclassified as discontinued operations and are not
reflected in the table below.
Average Daily Production
1Q 4Q Sequential 2016
2015 Change
2015 Change
Oil (Mbbl/d)
Delaware Basin 12.0 - n/a 9.1 32 % Williston Basin 21.8 24.9 -12 %
20.9 4 % San Juan Basin 7.5 8.1 -7 % 8.6 -13 % Other
0.2 - NM - NM Subtotal
(Mbbl/d) 41.5 33.0 26 % 38.6 8 %
NGLs (Mbbl/d)
Delaware Basin 1.9 - n/a 2.8 -32 % Williston 2.0 1.8 11 % 1.9 5 %
San Juan Basin 3.8 2.3 65 % 4.1 -7 % Other 0.1
0.1 - 0.1 -
Subtotal (Mbbl/d) 7.8 4.2 86 % 8.9 -12 %
Natural gas
(MMcf/d) Delaware Basin 20.6 - n/a 27.3 -25 % Williston Basin
13.1 12.6 4 % 11.9 10 % San Juan Basin 130.8 117.7 11 % 141.1 -7 %
Other 20.3 45.6 -55 %
21.2 -4 % Subtotal (MMcf/d) 184.8 175.9 5 % 201.5 -8
%
Total Production (Mboe/d) 80.1 66.6
20 % 81.1 -1 %
For the remainder of 2016, WPX has 30,438 barrels per day of oil
hedged at a weighted-average price of $60.35 per barrel. Excluding
the derivatives assigned at closing in the sale of the Piceance
subsidiary, WPX has natural gas derivatives totaling 146,541 MMBtu
per day for the remainder of 2016 at a weighted price of $3.93 per
MMBtu.
For 2017, WPX has 22,804 barrels per day of oil hedged at a
weighted-average price of $50.71 per barrel. WPX also has 90,000
MMBtu per day of natural gas hedged at a weighted-average price of
$2.82 per MMBtu.
WPX participated in the completion of 42 gross (21.4 net) wells
from continuing operations in first-quarter 2016. Overall capital
spending was $170 million, including $24 million of Piceance
activity that will effectively be reimbursed in conjunction with
the sale’s closing. WPX expects a slower run rate for subsequent
periods in 2016.
1Q 2016 WELL COMPLETIONS
OPERATED NON-OPERATED Gross Net Gross
Net Permian Basin 10 10 1 0.01 Williston Basin 6 5.4
0 0 San Juan Basin 7 5.9 0 0 Other (excluding Piceance) - - 18 0.09
TOTAL 23 21.3 19 0.10
DELAWARE BASIN
WPX operates in the core of the Permian’s world-class Delaware
Basin, where the company has more than 1.1 billion barrels of
equivalent net resource potential. Current activity is concentrated
in the Wolfcamp play.
Delaware production averaged 17.4 Mboe per day in the first
quarter, up 6 percent vs. the sequential quarter. Notably, WPX’s
oil production increased 32 percent vs. the sequential quarter.
Natural gas and NGL production was impacted by an outage at a
third-party gas processing plant.
Subsequent to the close of the first quarter, WPX completed the
Lindsay 2-4H well in the Wolfcamp A that achieved a rate of 2,060
Boed at a flowing casing pressure of 3,700 PSI during initial
production.
The 2-4H follows another Lindsay Wolfcamp A well – the 16-2H –
completed in February that posted 30-day production averaging 1,342
Boed at a flowing casing pressure of 3,960 PSI. Both of the Lindsay
wells represent early-time production records for WPX’s 1-mile
Wolfcamp wells using 1,500-pound completions.
Additionally, three Wolfcamp A wells on WPX’s CBR 32 pad
completed in 2015 continue to track in line with the company’s
updated type curve. The average 6-month cumulative production for
each of the three wells is 146 Mboe. WPX is pilot testing the
spacing of seven wells per section on this pad.
WPX’s first completion in the Delaware using 2,000 pounds of
sand per foot – the Haley 36-1H – now has cumulative production of
121 Mboe through 120 days. The well is averaging 73 percent oil.
Production at the end of April was 868 Boed.
The company followed its first 2,000-pound completion from
December with three more trials on the Bunin pad at the end of
April. These wells are beginning initial flowback.
WPX drilled eight Wolfcamp A wells (gross) in the Delaware Basin
in the first quarter, reducing drilling times by 10 percent vs. a
year ago to an average of 34.8 days per well. The company’s vision
is to reach 20 days per well in the Wolfcamp.
One of the first-quarter spuds – the CBR 16-7H 1-mile lateral –
reached total depth of 15,915 feet in just 24.5 days. Additionally,
WPX drilled the lateral portion (4,944 feet) of the Boyd 21-1H well
in 3.1 days.
WILLISTON BASIN
WPX’s Williston Basin production comes from the Bakken and Three
Forks formations. Approximately 85 percent of the production stream
is oil. WPX has one rig deployed in the basin.
As planned, WPX is now deferring Williston completions for the
next few months after completing a six-well pad in March. This
results in a current inventory of 15 drilled and uncompleted wells.
The inventory is expected to increase to 29 by year-end if WPX
continues to forego completions in the basin during the second half
of the year.
Williston production averaged 26 Mboe per day in the first
quarter, which was 5 percent higher than the sequential quarter.
LOE averaged $4.50 per barrel in the quarter, down 39 percent vs.
$7.43 per barrel a year ago.
WPX drilled four Williston wells (gross) in the first quarter,
consisting of two in the Bakken and two in the Three Forks. All
four wells were 3-mile laterals. The drilling time per well
averaged 24.9 days. The North Segment 6-5-4HW lateral was drilled
in just 18.8 days, which is WPX’s best time in the basin. WPX’s
previous record for a 3-mile Williston lateral was 21.6 days.
In March, WPX finished completing the six-well Emma Owner pad in
28 days. Half of the wells were completed with 10-million-pound
stimulations. The other half were completed with six-million-pound
stimulations. All six of the wells are 2-mile laterals.
During initial production, the Emma Owner wells produced a peak
rate of 14,985 barrels of oil equivalent per day. The 30-day
average for the pad remained very strong at 12,367 Boed.
SAN JUAN BASIN
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
at higher commodity prices. WPX has one rig deployed in the
basin.
San Juan Basin production averaged 33.1 Mboe per day in the
first quarter, which is 10 percent higher than a year ago. Higher
natural gas volumes drove the increase. WPX’s LOE for all of its
operations in the basin averaged $4.04 per barrel in the first
quarter, down 22 percent vs. $5.16 per barrel a year ago.
WPX drilled seven wells (gross) in the Gallup oil play in the
first quarter. Drilling on a six-well pad in the West Lybrook unit
commenced in February. Completions on the pad are scheduled to
begin in May.
WPX is averaging 7.9 days for 1-mile laterals and 8.6 days for
1.5-mile laterals in the San Juan Basin so far this year. WPX’s
best time in the basin for a 1.5-mile lateral to date is 7.5
days.
Additionally, WPX received final approval from the Bureau of
Land Management to form the Kimbeto Wash unit. WPX has plans for up
to 23 laterals in the unit averaging 7,000 feet per lateral. The
company now has six federal units approved in its Gallup
development area.
THURSDAY WEBCAST
The company’s next webcast takes place on May 5 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 85604672.
UPCOMING CONFERENCE PRESENTATION
WPX CEO Rick Muncrief is scheduled to speak at the Citi 2016
Global Energy and Utilities Conference on Tuesday, May 10, 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
presentation.
Form 10-Q
WPX plans to file its first-quarter 2016 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 is an oil-focused energy company with operations in the
Permian’s Delaware Basin, the Williston Basin and the San Juan
Basin. The company has reshaped its holdings through more than $5
billion of transactions and posted double-digit oil volume growth
in each of the past four years.
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.
WPX Energy, Inc. Consolidated (GAAP) (UNAUDITED)
2015 2016 (Dollars in millions) 1st Qtr
2nd Qtr 3rd Qtr 4th Qtr YTD 1st
Qtr
Revenues: Product
revenues: Oil sales $ 112 $ 138 $ 120 $ 124 $ 494 $ 97 Natural gas
sales 41 26 37 34 138 25 Natural gas liquid sales 3
5 6 9
23 5 Total product
revenues 156 169 163 167 655 127 Gas management 157 56 35 38 286 31
Net gain (loss) on derivatives 105 (71 ) 205 179 418 57 Other
2 - 4
1 7 1 Total
revenues 420 154 407 385 1,366 216 Costs and expenses: Lease
and facility operating 35 32 34 44 145 42 Gathering, processing and
transportation 17 16 17 14 64 16 Taxes other than income 15 16 14
17 62 11 Gas management, including charges for unutilized pipeline
capacity 109 58 43 51 261 39 Exploration 7 6 56 16 85 9
Depreciation, depletion and amortization 117 123 136 152 528 152
Impairment of producing properties and costs of acquired unproved
reserves - - - - - - Net (gain) loss on sales of assets (69 ) (208
) (2 ) (70 ) (349 ) (198 ) General and administrative 54 53 45 58
210 53 Acquisition costs - - 23 - 23 - Other-net 22
3 8 30
63 2 Total costs and
expenses 307 99 374 312 1,092 126
Operating income
(loss) 113 55 33 73 274
90 Interest expense (33 ) (32 ) (65 ) (57 ) (187 )
(57 ) Gain (loss) on extinguishment of debt - - (65 ) - (65 ) 3
Investment income and other 1 1
- (4 ) (2 )
(1 ) Income (loss) from continuing operations before income
taxes $ 81 $ 24 $ (97 ) $ 12 $ 20 $ 35 Provision (benefit) for
income taxes 29 1
(27 ) 31 34 35
Income (loss) from continuing operations $
52 $ 23 $ (70 ) $
(19 ) $ (14 ) $ -
Income (loss) from discontinued operations 16
(53 ) (160 ) (1,515 )
(1,712 ) (12 )
Net income (loss) $
68 $ (30 ) $ (230
) $ (1,534 ) $ (1,726
) $ (12 ) Less: Net income (loss)
attributable to noncontrolling interests 1
- - -
1 -
Net income (loss)
attributable to WPX Energy, Inc. $ 67
$ (30 ) $ (230
) $ (1,534 ) $
(1,727 ) $ (12 ) Less: Dividends
on preferred stock - -
4 5 9
5
Net income (loss) attributable to WPX Energy,
Inc. common stockholders $ 67
$ (30 ) $ (234 )
$ (1,539 ) $
(1,736 ) $ (17 ) Amounts
attributable to WPX Energy, Inc. common stockholders: Income
(loss) from continuing operations $ 52 $ 23 $ (74 ) $ (24 ) $ (23 )
$ (5 ) Income (loss) from discontinued operations 15
(53 ) (160 ) (1,515 )
(1,713 ) (12 )
Net income (loss)
$ 67 $ (30 )
$ (234 ) $ (1,539
) $ (1,736 ) $ (17
)
Summary of Production Volumes
(1) Oil (MBbls) 2,972 2,832 3,123 3,551 12,479 3,774 Natural
gas (MMcf) 15,832 14,913 16,901 18,542 66,187 16,820 Natural gas
liquids (MBbls) 379 476 733 823 2,412 708 Combined equivalent
volumes (MBoe)
(2) 5,990 5,794 6,673 7,465 25,922 7,285
Per day volumes Oil (MBbls/d) 33.0 31.1 33.9 38.6 34.2 41.5
Natural gas (MMcf/d) 176 164 184 202 181 185 Natural gas liquids
(MBbls/d) 4.2 5.2 8.0 9.0 6.6 7.8 Combined equivalent volumes
(Mboe/d)
(2) 66.6 63.7 72.5 81.1 71.0 80.1
(1) Excludes our Piceance Basin,
Powder River Basin and international operations, which were
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) $ 37.69 $ 48.75 $ 38.23 $ 35.14 $ 39.61 $ 25.62
Natural gas (per Mcf) $ 2.59 $ 1.76 $ 2.18 $ 1.81 $ 2.08 $ 1.52
Natural gas liquids (per barrel) $ 9.30 $ 9.81 $ 8.76 $ 9.75 $ 9.39
$ 7.14
(1) Excludes our Piceance Basin,
Powder River Basin and international operations, which were
classified as discontinued operations.
Expenses per Boe
(1) Lease and facility operating $ 5.90 $ 5.54 $ 5.07 $ 5.82 $
5.59 $ 5.74 Gathering, processing and transportation $ 2.91 $ 2.65
$ 2.53 $ 1.95 $ 2.48 $ 2.17 Taxes other than income $ 2.45 $ 2.83 $
2.06 $ 2.26 $ 2.38 $ 1.47 Depreciation, depletion and amortization
$ 19.56 $ 21.21 $ 20.37 $ 20.43 $ 20.39 $ 20.93 General and
administrative $ 8.94 $ 9.21 $ 6.72 $ 7.88 $ 8.12 $ 7.34
(1) Excludes our Piceance Basin,
Powder River Basin and international operations, which were
classified as discontinued operations.
WPX Energy, Inc. Reconciliation of Adjusted EPS and
EBITDAX (NON-GAAP) (UNAUDITED) 2015 2016 (Dollars in
millions, except per share amounts) 1st Qtr
2nd Qtr 3rd Qtr 4th Qtr Year 1st
Qtr
Income (loss) from
continuing operations attributable to WPX Energy, Inc. available to
common stockholders $ 52 $ 23 $ (74
) $ (24 ) $ (23 ) $ (5 )
Income (loss) from
continuing operations - diluted earnings per share $ 0.25
$ 0.11 $ (0.29 ) $ (0.09 )
$ (0.10 ) $ (0.02 )
Pre-tax adjustments: Impairments-
exploratory related $ - $ - $ 47 $ 3 $ 50 $ - Net (gain) loss on
sales of assets $ (69 ) $ (208 ) $ (2 ) $ (70 ) $ (349 ) $ (198 )
Contract termination and early rig release expenses $ 26 $ - $ - $
5 $ 31 $ - Accrual for certain future gathering obligations
associated with an abandoned area $ - $ - $ - $ 23 $ 23 $ - Costs
related to severance and relocation $ 8 $ 7 $ 1 $ (1 ) $ 15 $ 3
Costs related to acquisition (including loss on acquired debt
extinguishment) $ - $ 1 $ 103 $ 1 $ 105 $ - Previously capitalized
costs expensed following credit facility amendment $ - $ - $ - $ -
$ - $ 4 Gain on retirement of debt $ - $ - $ - $ - $ - $ (3 )
Unrealized MTM (gain) loss $ 30 $ 203 $
(50 ) $ 16 $ 199 $ 76
Total
pre-tax adjustments $ (5 ) $ 3 $ 99 $ (23 ) $ 74 $ (118 ) Less
tax effect for above items $ 2 $ (1 ) $ (35 ) $ 7 $ (27 ) $ 43
Impact of state deferred tax rate change $ - $ - $ - $ 8 $ 8 $ 14
Impact of state valuation allowance $ - $ -
$ - $ - $ - $ 8
Total adjustments, after-tax $ (3 ) $ 2
$ 64 $ (8 ) $ 55 $ (53 )
Adjusted
income (loss) from continuing operations available to common
stockholders $ 49 $ 25 $ (10 )
$ (32 ) $ 32 $ (58 )
Adjusted diluted
earnings (loss) per common share $ 0.24 $ 0.12
$ (0.04 ) $ (0.11 ) $ 0.14 $
(0.21 )
Diluted weighted-average shares (millions) 205.9
206.8 251.2 275.4 234.2 276.1
Adjusted EBITDAX
Reconciliation to net income (loss): Net income (loss) $ 68
$ (30 ) $ (230 ) $ (1,534 ) $ (1,726 ) $ (12 ) Interest expense 33
32 65 57 187 57 Provision (benefit) for income taxes 29 1 (27 ) 31
34 35 Depreciation, depletion and amortization 117 123 136 152 528
152 Exploration expenses 7 6
56 16 85
9
EBITDAX 254 132
- (1,278 ) (892 ) 241
Accrual for certain future gathering obligations associated with an
abandoned area - - - 23 23 - Net (gain) loss on sales of assets (69
) (208 ) (2 ) (70 ) (349 ) (198 ) RKI acquisition costs and loss on
extinguishment of acquired debt - 1 87 - 88 - Net (gain) loss on
derivatives (105 ) 71 (205 ) (179 ) (418 ) (57 ) Net cash received
(paid) related to settlement of derivatives 135 132 155 195 617 133
(Income) loss from discontinued operations (16 )
53 160 1,515
1,712 12
Adjusted
EBITDAX $ 199 $ 181
$ 195 $ 206
$ 781 $ 131
WPX Energy, Inc. Consolidated Statements of
Operations (Unaudited)
Three months ended March 31, 2016 2015
(Millions, except per share amounts) Revenues: Product
revenues: Oil sales $ 97 $ 112 Natural gas sales 25 41 Natural gas
liquid sales 5 3 Total product revenues
127 156 Gas management 31 157 Net gain (loss) on derivatives 57 105
Other 1 2 Total revenues 216
420 Costs and expenses: Lease and facility
operating 42 35 Gathering, processing and transportation 16 17
Taxes other than income 11 15 Gas management, including charges for
unutilized pipeline capacity 39 109 Exploration 9 7 Depreciation,
depletion and amortization 152 117 Net (gain) loss on sales of
assets (198 ) (69 ) General and administrative 53 54 Other - net
2 22 Total costs and expenses
126 307 Operating income (loss) 90 113
Interest expense (57 ) (33 ) Investment income and other 2
1 Income (loss) from continuing operations
before income taxes 35 81 Provision (benefit) for income taxes
35 29 Income (loss) from continuing
operations - 52 Income (loss) from discontinued operations
(12 ) 16 Net income (loss) (12 ) 68 Less: Net income
(loss) attributable to noncontrolling interests -
1 Net income (loss) attributable to WPX Energy, Inc.
(12 ) 67 Less: Dividends on preferred stock 5
- Net income (loss) attributable to WPX Energy, Inc. common
stockholders $ (17 ) $ 67
Amounts attributable to
WPX Energy, Inc. common stockholders: Income (loss) from
continuing operations $ (5 ) $ 52 Income (loss) from discontinued
operations (12 ) 15 Net income (loss) $ (17 )
$ 67
Basic earnings (loss) per common share:
Income (loss) from continuing operations $ (0.02 ) $ 0.26 Income
(loss) from discontinued operations (0.04 ) 0.07
Net income (loss) $ (0.06 ) $ 0.33 Basic
weighted-average shares (millions) 276.1 204.1
Diluted
earnings (loss) per common share: Income (loss) from continuing
operations $ (0.02 ) $ 0.25 Income (loss) from discontinued
operations (0.04 ) 0.07 Net income (loss) $
(0.06 ) $ 0.32 Diluted weighted-average shares
(millions) 276.1 205.9
WPX Energy, Inc.
Consolidated Balance Sheets (Unaudited)
March 31,2016
December 31,2015
ASSETS (Millions) Current assets: Cash and cash
equivalents $ 11 $ 38
Accounts receivable, net of allowance of
$6 million as of March 31, 2016 and December 31, 2015
190 300 Derivative assets 240 308 Inventories 42 46 Assets
classified as held for sale 1,056 178 Other 24
23 Total current assets 1,563 893 Properties and equipment
(successful efforts method of accounting) 8,551 8,415 Less:
Accumulated depreciation, depletion and amortization (2,047
) (1,893 ) Properties and equipment, net 6,504 6,522
Derivative assets 41 51 Other noncurrent assets 32
927 Total assets $ 8,140 $ 8,393
LIABILITIES AND EQUITY Current liabilities: Accounts payable
$ 220 $ 278 Accrued and other current liabilities 223 301
Liabilities associated with assets held for sale 275 140 Current
portion of long-term debt, net 304 1 Derivative liabilities
7 13 Total current liabilities 1,029 733
Deferred income taxes 505 465 Long-term debt, net 2,746 3,189
Derivative liabilities 18 2 Asset retirement obligations 100 99
Other noncurrent liabilities 227 370 Equity: Stockholders'
equity: Preferred stock (100 million shares authorized at $0.01 par
value; 7 million shares issued at March 31, 2016 and December 31,
2015) 339 339 Common stock (2 billion shares authorized at $0.01
par value; 276.7 million shares issued at March 31, 2016 and 275.4
million shares issued at December 31, 2015) 3 3 Additional
paid-in-capital 6,156 6,164 Accumulated deficit (2,983 )
(2,971 ) Total stockholders' equity 3,515
3,535 Total liabilities and equity $ 8,140 $
8,393
WPX Energy,
Inc. Consolidated Statements of Cash Flows
(Unaudited) Three months ended March 31,
2016 2015 (Millions) Operating
Activities Net income (loss) $ (12 ) $ 68 Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: Depreciation, depletion and amortization 161 216
Deferred income tax provision (benefit) 34 4 Provision for
impairment of properties and equipment (including certain
exploration expenses) 9 15 Amortization of stock-based awards 7 9
Gain on extinguishment of debt (3 ) - Net gain on sales of domestic
assets and international interests (198 ) (110 ) Cash provided
(used) by operating assets and liabilities: Accounts receivable 117
110 Inventories 4 (3 ) Margin deposits and customer margin deposits
payable 2 8 Other current assets - (5 ) Accounts payable (26 ) (90
) Income taxes payable (33 ) Accrued and other current liabilities
(131 ) (62 ) Accrued liabilities for retained transportation and
gathering contracts related to discontinued operations (10 ) -
Changes in current and noncurrent derivative assets and liabilities
96 30 Other, including changes in other noncurrent assets and
liabilities (1 ) 4 Net cash provided by
operating activities (a) 16 194
Investing Activities Capital expenditures(b) (185 ) (480 )
Proceeds from sales of domestic assets and international interests
281 563 Other (1 ) 4 Net cash provided by
(used in) investing activities (a) 95 87
Financing Activities Proceeds from common
stock 1 2 Dividends paid on preferred stock (5 ) - Borrowings on
credit facility 370 181 Payments on credit facility (460 ) (461 )
Payments for retirement of debt (48 ) - Payments for credit
facility amendment and fees (3 ) - Other 7 9
Net cash provided by (used in) financing activities
(138 ) (269 ) Net increase (decrease) in cash and
cash equivalents (27 ) 12 Cash and cash equivalents at beginning of
period 38 70 Cash and cash equivalents
at end of period $ 11 $ 82
_____________
(a) Includes amounts related to discontinued operations. (b)
Increase to properties and equipment $ (170 ) $ (297 ) Changes in
related accounts payable and accounts receivable (15 )
(183 ) Capital expenditures $ (185 ) $ (480 )
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WPX Energy, Inc.Media Contact:Kelly Swan,
539-573-4944orInvestor Contact:David Sullivan,
539-573-9360
WPX Energy (NYSE:WPX)
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