Independent oil & gas operator WPX Energy Inc. reported a loss of 17 cents per share in the third quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of 18 cents.

 

 

 

WPX Energy’s quarterly revenues of $251 million missed the Zacks Consensus Estimate of $268 million by 6.5%. Total revenue also plummeted 38.3% from $407 million in the year-ago quarter.

 

 

Total production in the third quarter was 84,400 barrels per oil equivalent (boe) per day, up 16% year over year. Total liquids accounted for 60% of the total production, reflecting the company’s increasing focus on oil.

 

Total expenses were $552 million, up 47.6% from $374 million in the year-ago quarter.

 

Interest expenses in the reported quarter were $49 million, down 24.6% from $65 million in the year-ago quarter.

 

WPX ENERGY INC Price, Consensus and EPS Surprise
 

 

 

Realized oil prices in the quarter were $38.71 per barrel, up 1.2% from the year-ago quarter.

 

Realized natural gas prices were $1.97 per thousand cubic feet (Mcf), down 9.6%. Realized prices for natural gas liquids were down 31.3% to $11.50 per barrel.

 

For the remainder of 2016, WPX Energy has 30,403 barrels per day of oil hedged at a weighted average price of $60.13 per barrel. For 2017, the company has 34,554 barrels per day of oil hedged at a weighted average price of $51.45 per barrel.

 

 

WPX Energy had $623 million of cash and cash equivalents as of Sep 30, 2016, compared with $38 million at the end of 2015.

 

Long-term debt as of Sep 30, 2016 was $2,574 million, down from $3,189 million as of Dec 31, 2015.

 

Net cash from operating activities in first nine months of 2016 was $109 million, compared with $629 million in the same period a year ago.

 

Capital expenditure in the first nine months of 2016 was $440 million, compared with $890 million in the year-ago period.

 

 

WPX Energy expects fourth-quarter 2016 oil production of 42–44 Mbbl/d.

 

The company projects total production in 2017 to be in the range of 97–107 Mboe/d, which included 49–53 Mbbl/d of oil.

 

For 2017, WPX Energy has a capital budget for drilling and completion activity of $800–$860 million and it envisions total capital expenditure in the range from $835–$905 million.

 

In 2017, the company expects to complete more than 150 operated wells under its plan, consisting of roughly 70–80 Delaware wells, 38–42 Williston wells and 40–46 San Juan wells.

 

 

Devon Energy Corp. (DVN Quick QuoteDVN - Free Report) reported third-quarter 2016 adjusted earnings per share of 9 cents, beating the Zacks Consensus Estimate of 5 cents by 80%.

 

Anadarko Petroleum Corporation reported third-quarter 2016 adjusted loss of 89 cents per share, wider than the Zacks Consensus Estimate of a loss of 57 cents.

 

Noble Energy, Inc. reported adjusted loss of 7 cents per share for the third quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of 22 cents.

 

 

WPX Energy’s third-quarter loss was narrower than estimates for the first time after five consecutive quarters of a wider-than-expected loss.

 

The company continues to work on its strategy of increasing oil production, which was evident from the rising liquid mix in its total production. We believe WPX Energy’s exposure in the Delaware, Williston and San Juan basins will enable it to achieve its goal of doubling oil production over the next two years.

 

WPX Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

 

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