A month has gone by since the last earnings report for WPX Energy, Inc. . Shares have added about 9.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is WPX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
WPX Energy Q4 Loss Narrower Than Expected, Revenues Up
Independent oil & gas operator, WPX Energy Inc. incurred a loss of 2 cents per share in the fourth quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The quarterly loss was also narrower than the year-ago quarter’s loss of 67 cents.
Total Revenues
WPX Energy’s quarterly revenues of $439 million surpassed the Zacks Consensus Estimate of $411 million by 6.7%. Further, total revenues improved 90% from $231 million in the year-ago quarter.
Highlights of the Release
Total production in the fourth quarter was 130,600 barrels oil equivalent per day, up 47.0% year over year. Total liquids accounted for nearly 70% of the total production, reflecting the company’s increasing focus on oil. Oil production in the quarter was 75,000 barrels per day, nearly 68% higher than the year-ago quarter level of 44,700 barrels per day.
Total expenses were $367 million, up 18.7% from $309 million in the year-ago quarter. Interest expenses in the reported quarter were $47 million, down 2.1% from $48 million in the prior-year quarter.
WPX Energy’s proved reserves as of Dec 31, 2017 were 436.2 million barrels of oil equivalent (MMBoe). The company’s 60% of the proved reserves were oil, up from 50% in 2016.
Realized Prices & Hedges
Realized oil prices in the quarter were $51.50 per barrel, up 22.1% from the year-ago quarter. Realized natural gas prices were $1.91 per thousand cubic feet (Mcf), down 10.3%. Realized prices for natural gas liquids were up 48.3% to $27.49 per barrel.
For 2018, WPX Energy has 56,979 barrels per day of oil hedged at a weighted average price of $52.72 per barrel. The company also has 131,616 MMBtu per day of natural gas hedged at a weighted average price of $2.99 per MMBtu.
Financial Update
WPX Energy generated $189 million of cash and cash equivalents as of Dec 31, 2017 compared with $496 million at the end of 2016. Long-term debt as of Dec 31, 2017 was $2,575 million, unchanged from 2016-end levels.
Net cash from operating activities in 2017 was $507 million compared with $268 million in 2016. For the same period, capital expenditure was $1,161 million compared with $578 million in the year-ago period.
Guidance
WPX Energy expects total production in 2018 to be within 117-126 thousand barrels of oil-equivalent per day (MBoe/d), within which oil production amounts 75-80 thousand barrels per day (Mbbl/d).
WPX Energy’s capital budget for continuing operations and midstream equity investment in 2018 is expected to be in the range of $1,160-$1,310 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. There have been three revisions higher for the current quarter compared to two lower.
VGM Scores
At this time, WPX has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, WPX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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WPX Energy (WPX) Up 9.7% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for WPX Energy, Inc. . Shares have added about 9.7% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is WPX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
WPX Energy Q4 Loss Narrower Than Expected, Revenues Up
Independent oil & gas operator, WPX Energy Inc. incurred a loss of 2 cents per share in the fourth quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The quarterly loss was also narrower than the year-ago quarter’s loss of 67 cents.
Total Revenues
WPX Energy’s quarterly revenues of $439 million surpassed the Zacks Consensus Estimate of $411 million by 6.7%. Further, total revenues improved 90% from $231 million in the year-ago quarter.
Highlights of the Release
Total production in the fourth quarter was 130,600 barrels oil equivalent per day, up 47.0% year over year. Total liquids accounted for nearly 70% of the total production, reflecting the company’s increasing focus on oil. Oil production in the quarter was 75,000 barrels per day, nearly 68% higher than the year-ago quarter level of 44,700 barrels per day.
Total expenses were $367 million, up 18.7% from $309 million in the year-ago quarter. Interest expenses in the reported quarter were $47 million, down 2.1% from $48 million in the prior-year quarter.
WPX Energy’s proved reserves as of Dec 31, 2017 were 436.2 million barrels of oil equivalent (MMBoe). The company’s 60% of the proved reserves were oil, up from 50% in 2016.
Realized Prices & Hedges
Realized oil prices in the quarter were $51.50 per barrel, up 22.1% from the year-ago quarter. Realized natural gas prices were $1.91 per thousand cubic feet (Mcf), down 10.3%. Realized prices for natural gas liquids were up 48.3% to $27.49 per barrel.
For 2018, WPX Energy has 56,979 barrels per day of oil hedged at a weighted average price of $52.72 per barrel. The company also has 131,616 MMBtu per day of natural gas hedged at a weighted average price of $2.99 per MMBtu.
Financial Update
WPX Energy generated $189 million of cash and cash equivalents as of Dec 31, 2017 compared with $496 million at the end of 2016. Long-term debt as of Dec 31, 2017 was $2,575 million, unchanged from 2016-end levels.
Net cash from operating activities in 2017 was $507 million compared with $268 million in 2016. For the same period, capital expenditure was $1,161 million compared with $578 million in the year-ago period.
Guidance
WPX Energy expects total production in 2018 to be within 117-126 thousand barrels of oil-equivalent per day (MBoe/d), within which oil production amounts 75-80 thousand barrels per day (Mbbl/d).
WPX Energy’s capital budget for continuing operations and midstream equity investment in 2018 is expected to be in the range of $1,160-$1,310 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. There have been three revisions higher for the current quarter compared to two lower.
WPX Energy, Inc. Price and Consensus
WPX Energy, Inc. Price and Consensus | WPX Energy, Inc. Quote
VGM Scores
At this time, WPX has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, WPX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.