WPX Energy Provides Operational Update
June 06 2016 - 6:30AM
Business Wire
Raises 2016 Expectation for Oil Output by 5
Percent
D&C Capex Remains within Guidance Range
WPX Energy (NYSE: WPX) announced today that it is increasing its
full-year oil production guidance to an average of 39 to 41
Mbbl/day, up 5 percent from previous guidance of 37 to 39
Mbbl/day.
Guidance for total equivalent production is up 3 percent to 77
to 82 Mboe/day from a previous estimate of 75 to 80 Mboe/d.
The increase is driven by better-than-expected well performance
and an expected increase in drilling and completion activity in the
Delaware and Williston basins during the second half of 2016.
WPX’s previously announced plan to add a third rig in the
Delaware Basin is scheduled to occur in October, along with new
plans to complete 15 to 20 drilled but uncompleted wells in the
Williston Basin beginning in August.
Despite the planned increase in activity, the company’s updated
drilling and completion budget for 2016 – $400 million to $450
million – remains within the original guidance range of $350
million to $450 million.
Additionally, WPX is initiating an expansion of its owned and
operated midstream infrastructure in the Delaware Basin with the
addition of a crude oil gathering system. This infrastructure
supports the company’s large contiguous acreage position in the
Stateline area of the basin.
WPX plans to commission the crude line in 2017. Once in service,
the new infrastructure will improve oil differentials for the
company’s production in the Delaware Basin. WPX’s existing
infrastructure in the basin is comprised of natural gas gathering
and water gathering and transfer lines.
“We are well positioned to leverage our operational momentum in
ways that can accelerate and enhance the value we deliver to
stockholders,” said Rick Muncrief, president and chief executive
officer. “The steps we’re taking to increase activity in our
world-class assets are consistent with our emphasis on remaining
opportunistic.”
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160606005649/en/
WPX Energy, Inc.Media Contact:Kelly Swan,
539-573-4944orInvestor Contact:David Sullivan,
539-573-9360
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