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WPX Energy (WPX) Q3 Earnings Lag Estimates, Revenues Up Y/Y

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WPX Energy Inc.’s (WPX - Free Report) third-quarter earnings of 7 cents per share lagged the Zacks Consensus Estimate of 9 cents by 22.2%. The company incurred a loss of 10 cents in the year-ago quarter.

Total Revenues

WPX Energy’s quarterly revenues of $484 million lagged the Zacks Consensus Estimate of $527 million by 8.2%. However, total revenues improved a whopping 233.8% from $145 million recorded in the year-ago quarter.

Highlights of the Release
 
Total production in the third quarter was 123,800 barrels of oil equivalent per day, up 59.7% year over year. Total liquids accounted for nearly 78.4% of the total production, reflecting the company’s increasing focus on oil.

Oil production in the quarter was 83,400 barrels per day, nearly 54.4% higher than the year-ago level, courtesy of 89% increase in Delaware Basin volumes over the past 12 months.

Total expenses were $458 million, up 195.5% from $155 million in the year-ago quarter.

Interest expenses in the reported quarter were $38 million, down 20.8% from $48 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 $65.52 per barrel, up 21.1% from the year-ago quarter.

Realized natural gas prices were $1.22 per thousand cubic feet, down 26.9% from a year ago. Realized prices for natural gas liquids were up 38.4% to $26.68 per barrel.

For the remaining of 2018, WPX Energy has 70,500 barrels per day of oil hedged at a weighted average price of $53.94 a barrel. The company also has 128,315 MMBtu per day of natural gas hedged at a weighted average price of $2.99 per MMBtu.

Financial Update
 
Cash and cash equivalents of WPX Energy as of Sep 30, 2018 were $36 million compared with $189 million at the end of 2017.

Its long-term debt as of Sep 30, 2018 was $2,243 million, down from the 2017-end level of $2,575 million.
 
Net cash from operating activities in the first nine months of 2018 was $652 million compared with $228 million in the corresponding period of 2017. During the same period, capital expenditure was $1,013 million compared with $855 million in the year-ago period.
 
Guidance

WPX Energy’s total production guidance for 2018 is now expected in the range of 123-130 thousand barrels of oil-equivalent per day (Mboe/d) compared with prior expectation of 122-130 Mboe/d.

The expected oil production for 2018 is now in the range of 79,000-82,000 bbl/d. compared with prior projection of 78,000-82,000 bbl/d

The company is targeting to improve oil volumes by 25-30% and produce 100,000-105,000 bbl/d in 2019.

For 2019, the company expects total production in the range of 159-171 Mboe/d and capital expenditure within $1,450-$1,650 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

Anadarko Petroleum Corporation’s (APC - Free Report) third-quarter 2018 earnings of 82 cents per share missed the Zacks Consensus Estimate of 88 cents by 6.8%.

Continental Resources, Inc. (CLR - Free Report) reported third-quarter 2018 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 81 cents.

Patterson-UTI Energy, Inc. (PTEN - Free Report) recently reported third-quarter adjusted net loss per share of 10 cents, narrower than the Zacks Consensus Estimate of 12 cents.

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