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WPX Energy (WPX) Earnings and Revenues Miss Estimates in Q4

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WPX Energy Inc.’s (WPX - Free Report) 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.

WPX Energy, Inc. Price, Consensus and EPS Surprise

WPX Energy, Inc. Price, Consensus and EPS Surprise | WPX Energy, Inc. Quote

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. (NBL - Free Report) 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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