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WPX Energy (WPX) Q1 Loss Wider Than Expected, Revenues Beat
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WPX Energy Inc. , an independent oil & gas operator, incurred a loss of 6 cents per share in the first quarter of 2018, wider than the Zacks Consensus Estimate of a loss of 2 cents. However, the quarterly loss was narrower than the year-ago quarter’s figure of 15 cents.
Total Revenues
WPX Energy’s quarterly revenues of $374 million surpassed the Zacks Consensus Estimate of $373 million by 0.4%. However, total revenues declined 5.3% from $395 million in the year-ago quarter.
Highlights of the Release
Total production in the first quarter was 102,700 barrels oil equivalent per day, up 76.0% year over year. Total liquids accounted for nearly 79% of the total production, reflecting the company’s increasing focus on oil.
Oil production in the quarter was 65,800 barrels per day, nearly 69% higher than the year-ago quarter level of 38,900 barrels per day, thanks to 149% increase in Delaware Basin volumes in the past 12 months.
Total expenses were $368 million, up 65.8% from $222 million in the year-ago quarter.
Interest expenses in the reported quarter were $46 million, down 2.1% from $47 million in the prior-year quarter.
WPX Energy, Inc. Price, Consensus and EPS Surprise
Realized oil prices in the quarter were $60.91 per barrel, up 34.4% from the year-ago quarter.
Realized natural gas prices were $1.44 per thousand cubic feet, down 33.9%. Realized prices for natural gas liquids were up 35.7% to $22.14 per barrel.
For the remaining of 2018, WPX Energy has 57,500 barrels per day of oil hedged at a weighted average price of $52.82 per barrel. The company also has 130,000 MMBtu per day of natural gas hedged at a weighted average price of $2.99 per MMBtu.
Financial Update
WPX Energy generated $681 million of cash and cash equivalents as of Mar 31, 2018 compared with $189 million at the end of 2017.
Long-term debt as of Mar 31, 2018 was $2,576 million, practically unchanged from 2017 end levels.
Net cash from operating activities in the first quarter of 2018 was $145 million compared with $22 million in the first quarter of 2017. For the same period, capital expenditure was $321 million compared with $237 million in the year-ago period.
Guidance
WPX Energy reiterated its total production for 2018 to be within 117-126 thousand barrels of oil-equivalent per day, within which oil production amounts to 75-80 thousand barrels per day.
WPX Energy’s capital budget for continuing operations and midstream equity investment for 2018 is expected to be in the range of $1,160-$1,310 million.
WPX Energy's performance in the first quarter was lower than expected, owing to production loss at Williston Basin due to adverse winter weather.
The company has taken a strategic decision to exit San Juan Basin after operating in the region for more than three decades. WPX Energy has transformed itself from a natural gas focused company to an oil focused one. The company has been able to do so through nearly $8 billion of transactions.
At present, the primary focus of the company is to concentrate on oil development in the Delaware and Williston Basins.
Peer Releases
Anadarko Petroleum Corporation reported first-quarter 2018 earnings of 52 cents per share, beating the Zacks Consensus Estimate of 43 cents by 20.9%.
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2018 adjusted earnings per share of 20 cents, beating the Zacks Consensus Estimate of 19 cents by 5.3%
Noble Energy, Inc. reported adjusted earnings of 35 cents per share in the first quarter of 2018, beating the Zacks Consensus Estimate of 28 cents by 25%.
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WPX Energy (WPX) Q1 Loss Wider Than Expected, Revenues Beat
WPX Energy Inc. , an independent oil & gas operator, incurred a loss of 6 cents per share in the first quarter of 2018, wider than the Zacks Consensus Estimate of a loss of 2 cents. However, the quarterly loss was narrower than the year-ago quarter’s figure of 15 cents.
Total Revenues
WPX Energy’s quarterly revenues of $374 million surpassed the Zacks Consensus Estimate of $373 million by 0.4%. However, total revenues declined 5.3% from $395 million in the year-ago quarter.
Highlights of the Release
Total production in the first quarter was 102,700 barrels oil equivalent per day, up 76.0% year over year. Total liquids accounted for nearly 79% of the total production, reflecting the company’s increasing focus on oil.
Oil production in the quarter was 65,800 barrels per day, nearly 69% higher than the year-ago quarter level of 38,900 barrels per day, thanks to 149% increase in Delaware Basin volumes in the past 12 months.
Total expenses were $368 million, up 65.8% from $222 million in the year-ago quarter.
Interest expenses in the reported quarter were $46 million, down 2.1% from $47 million in the prior-year quarter.
WPX Energy, Inc. Price, Consensus and EPS Surprise
WPX Energy, Inc. Price, Consensus and EPS Surprise | WPX Energy, Inc. Quote
Realized Prices & Hedges
Realized oil prices in the quarter were $60.91 per barrel, up 34.4% from the year-ago quarter.
Realized natural gas prices were $1.44 per thousand cubic feet, down 33.9%. Realized prices for natural gas liquids were up 35.7% to $22.14 per barrel.
For the remaining of 2018, WPX Energy has 57,500 barrels per day of oil hedged at a weighted average price of $52.82 per barrel. The company also has 130,000 MMBtu per day of natural gas hedged at a weighted average price of $2.99 per MMBtu.
Financial Update
WPX Energy generated $681 million of cash and cash equivalents as of Mar 31, 2018 compared with $189 million at the end of 2017.
Long-term debt as of Mar 31, 2018 was $2,576 million, practically unchanged from 2017 end levels.
Net cash from operating activities in the first quarter of 2018 was $145 million compared with $22 million in the first quarter of 2017. For the same period, capital expenditure was $321 million compared with $237 million in the year-ago period.
Guidance
WPX Energy reiterated its total production for 2018 to be within 117-126 thousand barrels of oil-equivalent per day, within which oil production amounts to 75-80 thousand barrels per day.
WPX Energy’s capital budget for continuing operations and midstream equity investment for 2018 is expected to be in the range of $1,160-$1,310 million.
Zacks Rank
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our View
WPX Energy's performance in the first quarter was lower than expected, owing to production loss at Williston Basin due to adverse winter weather.
The company has taken a strategic decision to exit San Juan Basin after operating in the region for more than three decades. WPX Energy has transformed itself from a natural gas focused company to an oil focused one. The company has been able to do so through nearly $8 billion of transactions.
At present, the primary focus of the company is to concentrate on oil development in the Delaware and Williston Basins.
Peer Releases
Anadarko Petroleum Corporation reported first-quarter 2018 earnings of 52 cents per share, beating the Zacks Consensus Estimate of 43 cents by 20.9%.
Devon Energy Corp. (DVN - Free Report) reported first-quarter 2018 adjusted earnings per share of 20 cents, beating the Zacks Consensus Estimate of 19 cents by 5.3%
Noble Energy, Inc. reported adjusted earnings of 35 cents per share in the first quarter of 2018, beating the Zacks Consensus Estimate of 28 cents by 25%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>