WPX Energy Inc.’s fourth-quarter earnings of 2 cents per share lagged the Zacks Consensus Estimate of 5 cents by 60%. The reported earnings also turned around from a loss of 2 cents incurred in the year-ago quarter.
Total Revenues
WPX Energy’s quarterly revenues of $544 million lagged the Zacks Consensus Estimate of $560 million by 2.9%. However, revenues improved 52.8% from $356 million recorded in the year-ago quarter.
Highlights of the Release
Total production in the fourth quarter was 156,400 barrels of oil equivalent per day, up 61% year over year. Liquids volumes accounted for nearly 78% of the total production, up from 59% in the year-ago comparable period, reflecting the company’s increasing focus on oil.
Oil production in the quarter was 96,000 barrels per day, which was nearly 49% higher than the year-ago level, courtesy of 55% increase in Delaware Basin and 44% growth in Williston Basin volumes over the past 12 months.
Total expenses were $497 million, up 68.5% from $295 million in the year-ago quarter.
Interest expenses in the reported quarter were $40 million, down 14.9% from $47 million in the prior-year period.
The company replaced its overall 2018 production at a rate of 308%, before consideration of divestitures.
Realized Prices & Hedges
Realized oil prices in the quarter were $52.05 per barrel, up 0.02% from the year-ago level.
Realized natural gas prices were $1.90 per thousand cubic feet, up 4.4% from a year ago. Realized prices for natural gas liquids were down 15.8% from the prior-year quarter to $20.14 per barrel.
For 2019, WPX Energy has 42,575 barrels per day of oil hedged at a weighted average price of $53.65 a barrel. The company also has 108,470 million British thermal units (MMBtu) per day of natural gas hedged at a weighted average price of $3.07 per MMBtu.
Financial Update
Cash and cash equivalents of WPX Energy as of Dec 31, 2018 were $3 million compared with $189 million at the end of 2017.
Its long-term debt as of Dec 31, 2018 was $2,485 million, down from the 2017-end level of $2,575 million.
Net cash from operating activities in 2018 was $883 million compared with $507 million recorded a year ago. Capital expenditure was $1,476 million compared with $1,161 million in the year-ago period.
Guidance
WPX Energy expects total production guidance for 2019 in the range of 149-161 thousand barrels of oil equivalent per day (Mboe/d), out of which 63% is supposed to be oil. The midpoint of the guided range is 155 Mboe/d, which is 225% higher than the 2018 production level.
Capital expenditure for 2019 is expected in the range of $1,100-$1,275 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.
Other Releases
Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2018 adjusted earnings per share of 10 cents, which lagged the Zacks Consensus Estimate of 31 cents by 67.7%.
Noble Energy, Inc. delivered adjusted earnings of 12 cents per share in fourth-quarter 2018, surpassing the Zacks Consensus Estimate of 11 cents by 9%.
CNX Resources Corporation (CNX - Free Report) delivered adjusted earnings of 67 cents per share in fourth-quarter 2018, beating the Zacks Consensus Estimate of 28 cents by a whopping 139.3%.
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WPX Energy Inc.’s fourth-quarter earnings of 2 cents per share lagged the Zacks Consensus Estimate of 5 cents by 60%. The reported earnings also turned around from a loss of 2 cents incurred in the year-ago quarter.
Total Revenues
WPX Energy’s quarterly revenues of $544 million lagged the Zacks Consensus Estimate of $560 million by 2.9%. However, revenues improved 52.8% from $356 million recorded in the year-ago quarter.
Highlights of the Release
Total production in the fourth quarter was 156,400 barrels of oil equivalent per day, up 61% year over year. Liquids volumes accounted for nearly 78% of the total production, up from 59% in the year-ago comparable period, reflecting the company’s increasing focus on oil.
Oil production in the quarter was 96,000 barrels per day, which was nearly 49% higher than the year-ago level, courtesy of 55% increase in Delaware Basin and 44% growth in Williston Basin volumes over the past 12 months.
Total expenses were $497 million, up 68.5% from $295 million in the year-ago quarter.
Interest expenses in the reported quarter were $40 million, down 14.9% from $47 million in the prior-year period.
The company replaced its overall 2018 production at a rate of 308%, before consideration of divestitures.
Realized Prices & Hedges
Realized oil prices in the quarter were $52.05 per barrel, up 0.02% from the year-ago level.
Realized natural gas prices were $1.90 per thousand cubic feet, up 4.4% from a year ago. Realized prices for natural gas liquids were down 15.8% from the prior-year quarter to $20.14 per barrel.
For 2019, WPX Energy has 42,575 barrels per day of oil hedged at a weighted average price of $53.65 a barrel. The company also has 108,470 million British thermal units (MMBtu) per day of natural gas hedged at a weighted average price of $3.07 per MMBtu.
Financial Update
Cash and cash equivalents of WPX Energy as of Dec 31, 2018 were $3 million compared with $189 million at the end of 2017.
Its long-term debt as of Dec 31, 2018 was $2,485 million, down from the 2017-end level of $2,575 million.
Net cash from operating activities in 2018 was $883 million compared with $507 million recorded a year ago. Capital expenditure was $1,476 million compared with $1,161 million in the year-ago period.
Guidance
WPX Energy expects total production guidance for 2019 in the range of 149-161 thousand barrels of oil equivalent per day (Mboe/d), out of which 63% is supposed to be oil. The midpoint of the guided range is 155 Mboe/d, which is 225% higher than the 2018 production level.
Capital expenditure for 2019 is expected in the range of $1,100-$1,275 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.
Other Releases
Devon Energy Corp. (DVN - Free Report) reported fourth-quarter 2018 adjusted earnings per share of 10 cents, which lagged the Zacks Consensus Estimate of 31 cents by 67.7%.
Noble Energy, Inc. delivered adjusted earnings of 12 cents per share in fourth-quarter 2018, surpassing the Zacks Consensus Estimate of 11 cents by 9%.
CNX Resources Corporation (CNX - Free Report) delivered adjusted earnings of 67 cents per share in fourth-quarter 2018, beating the Zacks Consensus Estimate of 28 cents by a whopping 139.3%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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