Company Continues to Aggressively Execute Despite Challenging
WPX Energy (NYSE: WPX) has added more hedges to protect cash flows and
repurchased a portion of notes that are due in early 2017.
Approximately three-fourths of WPX’s 2016 anticipated oil volumes are
hedged well above current prices. The company now has 29,380 barrels of
oil per day hedged at $60.85 per barrel in 2016. This includes another
2,000 bbl/d added since the company’s most recent quarterly report.
Roughly two-thirds of WPX’s anticipated 2016 natural gas production is
hedged at $3.63 per MMBtu. For 2017, WPX has 9,304 bbl/d of oil hedged
at $61.66 per barrel and 92,500 MMBtu per day of natural gas hedged at
Over the past two months, WPX reduced its long-term debt by repurchasing
approximately $68 million in notes – or 17 percent – of a $400 million
maturity due in early 2017 at a discount to par. The company’s next debt
maturity does not occur until 2020.
WPX has been increasing its liquidity through asset sales. WPX exceeded
its 2015 divestiture target with the previously announced agreement to
sell its San Juan Basin gathering system. WPX also remains engaged in
discussions with third parties relating to the disposition of all or a
portion of its assets in the Piceance Basin.
“We continue to proactively manage our finances,” stated Rick Muncrief,
WPX president and chief executive officer. “This positions us to grow
our portfolio when commodity prices rebound, especially our world-class
Permian Delaware asset. The results of our early work in the basin are
exceeding our expectations.”
Further details regarding WPX’s 2016 plans and guidance will be provided
in late February. The company’s next quarterly webcast takes place on
Feb. 25 beginning at 10 a.m. Eastern. Investors are encouraged to access
the event and the corresponding slides at www.wpxenergy.com.
About WPX Energy, Inc.
WPX is a domestic energy producer with operations in the western United
States. The company has transformed its portfolio through more than $4.5
billion of transactions, including the acquisition of a considerable
position in the core of the Permian’s Delaware Basin.
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the
control of the company. Statements regarding future drilling and
production are subject to all of the risks and uncertainties normally
incident to the exploration for and development and production of oil
and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks;
environmental risks; and political or regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by WPX Energy
on its website or otherwise. WPX Energy does not undertake and
expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our
filings with the Securities and Exchange Commission, available from us
at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa,
Okla., 74102, or from the SEC’s website at www.sec.gov.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160120005342/en/
Copyright Business Wire 2016
Source: Business Wire
(January 20, 2016 - 7:30 AM EST)
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