WPX Energy Provides 2Q Operations and Financial Report: Increases Footprint and Opportunities in Delaware Basin
• Joins the 100,000-acre club in the Delaware Basin
• Raises estimate for net resource potential in Delaware to
2.4 billion boe
• Increases gross drilling locations in Delaware to 5,500+
• 2Q Delaware oil volumes jump 15 percent vs. 1Q 2016
• Completions to resume in Williston Basin this month
WPX reported an unaudited second-quarter 2016 net loss attributable to
common shareholders of $204 million, or a loss of $0.68 per share on a
diluted basis.
Second-quarter 2016 financial results were impacted by unrealized
non-cash net losses on WPX’s hedge portfolio; higher depreciation,
depletion and amortization related to higher than expected Williston
Basin production; severance and relocation costs; and managing
transportation arrangements associated with selling the Piceance Basin
subsidiary.
“We continue to work through the final aspects of our transformation.
We’re executing very well, reporting higher volumes, reducing debt and
building a cash position that can support an acceleration of activity in
2017 and 2018,” said Rick Muncrief, president and chief executive
officer.
EXPANDING IN THE DELAWARE BASIN
WPX is more than doubling its estimate for net resource potential in the
Permian’s Delaware Basin from 1.1 billion barrels of oil equivalent to
approximately 2.4 billion boe and raising the projected number of gross
drillable locations from more than 3,600 to more than 5,500.
WPX’s original estimate was conducted a year ago when it acquired
Delaware properties from RKI Exploration and Production. The new
assessment comes on the heels of increasing estimated ultimate
recoveries (EURs) earlier this year, identifying additional benches
(such as Wolfcamp X/Y), down-spacing opportunities in targeted
intervals, and purchasing more acreage.
Subsequent to the close of the second quarter, WPX acquired another
7,800 net acres in the Delaware basin from a privately held undisclosed
seller.
The acreage is close to WPX’s acreage position in central Eddy County,
New Mexico. It has multiple stacked horizontal targets, including the
Wolfcamp and Bone Spring intervals.
The bolt-on acquisition increases WPX’s position in the Permian Basin to
over 100,000 net acres. The purchase also includes existing production
of approximately 425 boe per day (55 percent oil) from 16 vertical wells.
As previously announced, WPX plans to add a third rig in the Delaware
Basin in October to support delineation of the Wolfcamp D and X/Y
intervals. WPX’s development has primarily focused on the Wolfcamp A to
date.
Additionally, WPX is proceeding to expand its owned and operated
midstream infrastructure in the Delaware Basin with the addition of a
crude oil gathering system. This will increase reliability, increase the
optionality for market access and improve oil differentials.
Planning and engineering are under way, with groundbreaking scheduled to
occur before year-end. The first phase of the project is expected to be
complete in mid-2017, with further build-out to follow. WPX is planning
a total installation of approximately 50 miles of pipe to support its
Delaware production.
“We have a tremendous opportunity in the basin,” said Clay Gaspar, chief
operating officer. “The Delaware is a world-class oil play, whose upside
is being understood more and more through ongoing resource assessment.
We’re extremely pleased with our own results, as well as the performance
we’re seeing from offset operators.”
SECOND-QUARTER FINANCIAL RESULTS
WPX reported an unaudited second-quarter 2016 net loss attributable to
common shareholders of $204 million, or a loss of $0.68 per share on a
diluted basis. A 46 percent increase in oil sales vs. the preceding
quarter was more than offset by a non-cash net loss on derivatives as
underlying commodity prices improved causing a reduction in the value of
those contracts.
The adjusted net loss from continuing operations (a non-GAAP financial
measure that excludes certain items typically excluded from published
analyst estimates) in the second quarter was $85 million, or a loss of
$0.28 per share. Adjusted EBITDAX (a non-GAAP financial measure) for the
second quarter was $94 million. For the first half of 2016, adjusted
EBITDAX was $225 million. Reconciliations for non-GAAP financial
measures are available in the tables that accompany this press release.
The weighted average gross sales price – prior to revenue deductions –
for oil decreased 20 percent vs. a year ago to $39.81 per barrel in
second-quarter 2016. Natural gas prices decreased 26 percent to $1.63
per Mcf. NGL prices decreased 11 percent to $15.02 per barrel. The
weighted average gross sales price for oil and NGLs, however, rose 49
percent and 29 percent respectively compared with the preceding quarter.
Second-quarter oil revenues of $142 million accounted for more than 80
percent of total product revenues in a quarter for the first time. Total
product revenues were $176 million in second-quarter 2016, up 39 percent
vs. the preceding quarter. Total product revenues for the first half of
2016 were $303 million, including $239 million of oil sales.
LIQUIDITY REMAINS ROBUST
WPX’s total liquidity at the close of business on June 30 was
approximately $2.1 billion, consisting of $1.025 billion in undrawn
capacity on a revolving credit facility and the company’s unrestricted
cash and cash equivalents.
During the second quarter, WPX received approximately $538 million in
net proceeds from a public offering of common stock. In July, WPX
applied a portion of the net proceeds to acquire additional acreage in
the Delaware Basin.
Based on current operating conditions, WPX believes it has ample cash
on-hand to accelerate drilling and completion activities if conditions
warrant, for midstream infrastructure development in the Delaware Basin,
and to fully fund planned operating capital expenditures in excess of
operating cash flows through 2018.
Since the end of the first quarter, the company repurchased $179 million
of its 5.250 percent Senior Notes due 2017. The initial $400 million
balance on the 2017 maturity now stands at $125 million.
OIL PRODUCTION REMAINS ABOVE 40,000 BARRELS PER DAY
Total company production volumes were 85.2 Mboe per day in the second
quarter. Production was up 6 percent vs. the preceding quarter,
primarily from Delaware gas volumes that were previously impacted by an
outage at a third-party gas processing plant in prior quarters.
Second-quarter oil volumes of 40,900 barrels per day were comparable to
the company’s high of 41,500 barrels per day in the first quarter
despite reduced development activity in the Williston and San Juan
basins. Total liquids accounted for 60 percent of production.
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Average Daily Production
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2Q
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1Q
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2016
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2015
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Change
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2016
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Change
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Oil (Mbbl/d)
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Delaware Basin
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13.8
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-
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n/a
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12
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15
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%
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Williston Basin
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20
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22.6
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-12
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%
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21.8
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-8
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%
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San Juan Basin
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7
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8.5
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-18
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%
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7.5
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-7
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%
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Other
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0
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0
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0
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%
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0.2
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NM
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Subtotal (Mbbl/d)
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40.9
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31.1
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32
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%
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41.5
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-1
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%
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NGLs (Mbbl/d)
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Delaware Basin
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4.1
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-
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n/a
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1.9
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116
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%
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Williston Basin
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2.1
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2
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5
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%
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2
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5
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%
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San Juan Basin
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3.7
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3.1
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19
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%
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3.8
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-3
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%
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Other
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0.1
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0.1
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0
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%
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0.1
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0
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%
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Subtotal (Mbbl/d)
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10
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5.2
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92
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%
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7.8
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28
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%
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|
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|
|
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Natural gas (MMcf/d)
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|
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|
|
|
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Delaware Basin
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49
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-
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n/a
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21
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133
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%
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Williston Basin
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12
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|
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12
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0
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%
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13
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-8
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%
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San Juan Basin
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127
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126
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1
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%
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131
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-3
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%
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Other
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18
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|
|
26
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|
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-31
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%
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|
|
20
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|
|
-20
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%
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Subtotal (MMcf/d)
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|
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206
|
|
|
164
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|
|
26
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%
|
|
|
185
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|
|
11
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%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total Production (MMcfe/d)
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|
|
511
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|
|
382
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|
|
34
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%
|
|
|
480
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|
|
6
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%
|
Total Production (Mboe/d)
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|
|
85.2
|
|
|
63.7
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|
|
34
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%
|
|
|
80.1
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|
|
6
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%
|
|
|
|
|
|
|
|
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|
|
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|
For the remainder of 2016, WPX has 30,712 barrels per day of oil hedged
at a weighted average price of $60.16 per barrel. WPX has natural gas
derivatives totaling 145,965 MMBtu per day for the remainder of 2016 at
a weighted average price of $3.93 per MMBtu.
For 2017, WPX has 25,054 barrels per day of oil hedged at a weighted
average price of $50.74 per barrel. WPX also has 110,000 MMBtu per day
of natural gas hedged at a weighted average price of $2.91 per MMBtu.
For 2018, WPX has 6,000 barrels per day of oil hedged at a weighted
average price of $60.14 per barrel.
WPX participated in the completion of 26 gross (14.1 net) wells from
continuing operations in second-quarter 2016. Capital spending for
drilling and completion in the first half of 2016 was $264 million,
including $94 million in the second quarter. These amounts are in line
with the company’s guidance range of $400 million to $450 million for
the full year.
Amounts for 2016 capital spending also include $26 million of Piceance
activity that will effectively be reimbursed in conjunction with the
sale of the Piceance subsidiary.
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2Q 2016 WELL COMPLETIONS
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OPERATED
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NON-OPERATED
|
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|
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Gross
|
|
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Net
|
|
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Gross
|
|
|
Net
|
Delaware Basin
|
|
|
8
|
|
|
8
|
|
|
3
|
|
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0.20
|
Williston Basin
|
|
|
0
|
|
|
0
|
|
|
0
|
|
|
0
|
San Juan Basin
|
|
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6
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5.9
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0
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|
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0
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Other (Green River)
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0
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0
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9
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0.04
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TOTAL
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14
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13.9
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|
12
|
|
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0.24
|
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DELAWARE BASIN
WPX operates in the core of the Permian’s world-class Delaware Basin,
where the company has more than 5,500 gross drillable locations across
13 prospective intervals based on a recent resource assessment.
Delaware production averaged 26 Mboe per day in the second quarter, up
50 percent vs. the preceding quarter primarily from gas volumes that
were previously impacted due to a third-party plant outage. WPX’s oil
volumes in the basin increased 15 percent vs. the preceding quarter.
For the first half of 2016, the maximum initial production rates for
Wolfcamp A wells averaged 1,024 barrels of oil per day, 36 percent
higher than 2015 IP rates. Sixty-day rates for Wolfcamp A wells in the
first half of 2016 averaged 716 barrels of oil per day, 43 percent
higher than 2015 results.
The Lindsay 2-4H well continues to represent an early-time production
record for WPX’s 1-mile Wolfcamp A wells using larger completions. It
posted 30-day production averaging 1,944 Boe per day and has cumulative
production of 166 Mboe through 90 days. The well is averaging 50 percent
oil.
WPX has various spacing tests under way in the basin and continues to
conduct trials on completion designs including different sand volumes
and perforation cluster spacing. These tests are designed to optimize
production and result in operational efficiencies and cost savings. WPX
is self-sourcing sand for its Delaware completions, providing the
company with direct access to mines.
WILLISTON BASIN
WPX’s Williston Basin production comes from the Bakken and Three Forks
formations. Approximately 85 percent of the production stream is oil.
Williston production averaged 24.1 Mboe per day in the second quarter,
compared with 26 Mboe per day in the preceding quarter. WPX did not
complete any wells in the basin during the second quarter.
Completion activity in the basin will resume in August. WPX expects to
complete three to four wells per month through December.
WPX drilled four Williston wells (gross) in the second quarter,
consisting of two in the Bakken and two in the Three Forks. All four
wells were 2-mile laterals. The drilling time per well averaged 17.7
days.
The Owl Comes Out 8-9HC lateral was drilled in just 16.3 days, which is
WPX’s best time in the basin for a 2-mile lateral. WPX’s goal is to
achieve spud-to-rig release in 12 days for a 2-mile lateral in the basin.
SAN JUAN BASIN
WPX produces oil in the southern end of the San Juan Basin from the
Gallup Sandstone and has a legacy natural gas position in the northern
end of the basin, including considerable dry Mancos upside.
San Juan Basin production averaged 31.9 Mboe per day in the second
quarter, compared with 33.1 Mboe per day in the preceding quarter.
WPX completed a six-well pad in the West Lybrook unit in the second
quarter. The combined lateral length of the wells exceeded eight miles.
Drilling averaged 7.7 days per well. Four of the wells were completed
with 1,000-pound-per-foot completion designs. The other two were
completed with a 1,500-pound design. D&C costs, including facilities,
averaged $4.1 million for the 1.5-mile laterals (3).
WPX brought the six wells online sequentially utilizing a controlled
flowback procedure. The wells were subsequently shut-in during initial
production after a fire impacted temporary storage tanks and surface
equipment at the pad.
In the day prior to being shut in, the pad hit a peak rate of 6,000
barrels of oil while none of the wells were fully open. WPX is in the
process of bringing the wells back on production.
UPDATED GUIDANCE
As previously announced in June, WPX increased its full-year oil
production guidance for 2016 to an average of 39 to 41 Mbbl per day, up
5 percent from previous guidance of 37 to 39 Mbbl per day. Guidance for
total equivalent production in 2016 is 77 to 82 Mboe per day.
Additionally, WPX is tightening the range for its expected commodity
price differentials in 2016 and modifying its estimates for certain
expenses this year, including lower expected cash operating expenses and
higher DD&A.
Full information about WPX’s 2016 guidance is available in the
second-quarter slide presentation at www.wpxenergy.com.
JOIN THURSDAY’S WEBCAST
The company’s next webcast takes place on Aug. 4 beginning at 10 a.m.
Eastern. Investors are encouraged to access the event and the
corresponding slides at www.wpxenergy.com.
A limited number of phone lines also will be available at (844)
215-3288. International callers should dial (615) 247-5915. The
conference identification code is 36768570.
UPCOMING CONFERENCE PRESENTATIONS
WPX Chief Operating Officer Clay Gaspar is scheduled to speak at the
Enercom Oil and Gas Conference on Tuesday, Aug. 16, at 10:55 a.m.
Eastern.
WPX CEO Rick Muncrief is scheduled to present at Barclays Capital CEO
Energy-Power Conference on Tuesday, Sept. 6, at 1:05 p.m. Eastern.
Please visit www.wpxenergy.com
on the day of each event to confirm the time, see the slides and listen
to the presentations.
Form 10-Q
WPX plans to file its second-quarter 2016 Form 10-Q with the Securities
and Exchange Commission this week. Once filed, the document will be
available on the SEC and WPX websites.
About WPX Energy, Inc.
WPX is an oil-focused energy company with operations in the Permian’s
Delaware Basin, the Williston Basin and the San Juan Basin. The company
has reshaped its holdings through more than $5 billion of transactions
and posted double-digit oil volume growth in each of the past four years.
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.
Additionally, the SEC requires oil and gas companies, in filings made
with the SEC, to disclose proved reserves, which are those quantities of
oil and gas, which, by analysis of geoscience and engineering data, can
be estimated with reasonable certainty to be economically producible –
from a given date forward, from known reservoirs, under existing
economic conditions, operating methods, and governmental regulations.
The SEC permits the optional disclosure of probable and possible
reserves. From time to time, we elect to use “probable” reserves and
“possible” reserves, excluding their valuation. The SEC defines
“probable” reserves as “those additional reserves that are less certain
to be recovered than proved reserves but which, together with proved
reserves, are as likely as not to be recovered.” The SEC defines
“possible” reserves as “those additional reserves that are less certain
to be recovered than probable reserves.” The Company has applied these
definitions in estimating probable and possible reserves. Statements of
reserves are only estimates and may not correspond to the ultimate
quantities of oil and gas recovered. Any reserve estimates provided in
this presentation that are not specifically designated as being
estimates of proved reserves may include estimated reserves not
necessarily calculated in accordance with, or contemplated by, the SEC’s
reserves reporting guidelines. Investors are urged to consider closely
the disclosure in our SEC filings that may be accessed through the SEC’s
website at www.sec.gov.
The SEC’s rules prohibit us from filing resource estimates. Our
resource estimations include estimates of hydrocarbon quantities for (i)
new areas for which we do not have sufficient information to date to
classify as proved, probable or even possible reserves, (ii) other areas
to take into account the low level of certainty of recovery of the
resources and (iii) uneconomic proved, probable or possible reserves.
Resource estimates do not take into account the certainty of resource
recovery and are therefore not indicative of the expected future
recovery and should not be relied upon. Resource estimates might never
be recovered and are contingent on exploration success, technical
improvements in drilling access, commerciality and other factors.
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WPX Energy, Inc.
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Consolidated (GAAP)
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(UNAUDITED)
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2015
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2016
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(Dollars in millions)
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|
1st Qtr
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|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
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YTD
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1st Qtr
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2nd Qtr
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YTD
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Revenues:
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Product revenues:
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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|
Oil sales
|
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|
$
|
112
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|
|
|
$
|
138
|
|
|
|
$
|
120
|
|
|
|
$
|
124
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|
|
|
$
|
494
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|
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|
$
|
97
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|
|
|
$
|
142
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|
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|
$
|
239
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|
Natural gas sales
|
|
|
|
41
|
|
|
|
|
26
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|
|
|
|
37
|
|
|
|
|
34
|
|
|
|
|
138
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|
|
|
|
25
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|
|
|
|
24
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|
|
|
|
49
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|
Natural gas liquid sales
|
|
|
|
3
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|
|
|
|
5
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|
|
|
|
6
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|
|
|
|
9
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|
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|
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23
|
|
|
|
|
5
|
|
|
|
|
10
|
|
|
|
|
15
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Total product revenues
|
|
|
|
156
|
|
|
|
|
169
|
|
|
|
|
163
|
|
|
|
|
167
|
|
|
|
|
655
|
|
|
|
|
127
|
|
|
|
|
176
|
|
|
|
|
303
|
|
Gas management
|
|
|
|
157
|
|
|
|
|
56
|
|
|
|
|
35
|
|
|
|
|
38
|
|
|
|
|
286
|
|
|
|
|
31
|
|
|
|
|
116
|
|
|
|
|
147
|
|
Net gain (loss) on derivatives
|
|
|
|
105
|
|
|
|
|
(71
|
)
|
|
|
|
205
|
|
|
|
|
179
|
|
|
|
|
418
|
|
|
|
|
57
|
|
|
|
|
(154
|
)
|
|
|
|
(97
|
)
|
Other
|
|
|
|
2
|
|
|
|
|
-
|
|
|
|
|
4
|
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
1
|
|
Total revenues
|
|
|
|
420
|
|
|
|
|
154
|
|
|
|
|
407
|
|
|
|
|
385
|
|
|
|
|
1,366
|
|
|
|
|
216
|
|
|
|
|
138
|
|
|
|
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and facility operating
|
|
|
|
35
|
|
|
|
|
32
|
|
|
|
|
34
|
|
|
|
|
44
|
|
|
|
|
145
|
|
|
|
|
42
|
|
|
|
|
41
|
|
|
|
|
83
|
|
Gathering, processing and transportation
|
|
|
|
17
|
|
|
|
|
16
|
|
|
|
|
17
|
|
|
|
|
14
|
|
|
|
|
64
|
|
|
|
|
16
|
|
|
|
|
20
|
|
|
|
|
36
|
|
Taxes other than income
|
|
|
|
15
|
|
|
|
|
16
|
|
|
|
|
14
|
|
|
|
|
17
|
|
|
|
|
62
|
|
|
|
|
11
|
|
|
|
|
16
|
|
|
|
|
27
|
|
Gas management, including charges for unutilized pipeline capacity
|
|
|
|
109
|
|
|
|
|
58
|
|
|
|
|
43
|
|
|
|
|
51
|
|
|
|
|
261
|
|
|
|
|
39
|
|
|
|
|
132
|
|
|
|
|
171
|
|
Exploration
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
56
|
|
|
|
|
16
|
|
|
|
|
85
|
|
|
|
|
9
|
|
|
|
|
12
|
|
|
|
|
21
|
|
Depreciation, depletion and amortization
|
|
|
|
117
|
|
|
|
|
123
|
|
|
|
|
136
|
|
|
|
|
152
|
|
|
|
|
528
|
|
|
|
|
152
|
|
|
|
|
163
|
|
|
|
|
315
|
|
Net (gain) loss on sales of assets
|
|
|
|
(69
|
)
|
|
|
|
(208
|
)
|
|
|
|
(2
|
)
|
|
|
|
(70
|
)
|
|
|
|
(349
|
)
|
|
|
|
(198
|
)
|
|
|
|
(4
|
)
|
|
|
|
(202
|
)
|
General and administrative
|
|
|
|
54
|
|
|
|
|
53
|
|
|
|
|
45
|
|
|
|
|
58
|
|
|
|
|
210
|
|
|
|
|
53
|
|
|
|
|
55
|
|
|
|
|
108
|
|
Acquisition costs
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Other-net
|
|
|
|
22
|
|
|
|
|
3
|
|
|
|
|
8
|
|
|
|
|
30
|
|
|
|
|
63
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
4
|
|
Total costs and expenses
|
|
|
|
307
|
|
|
|
|
99
|
|
|
|
|
374
|
|
|
|
|
312
|
|
|
|
|
1,092
|
|
|
|
|
126
|
|
|
|
|
437
|
|
|
|
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
113
|
|
|
|
|
55
|
|
|
|
|
33
|
|
|
|
|
73
|
|
|
|
|
274
|
|
|
|
|
90
|
|
|
|
|
(299
|
)
|
|
|
|
(209
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(33
|
)
|
|
|
|
(32
|
)
|
|
|
|
(65
|
)
|
|
|
|
(57
|
)
|
|
|
|
(187
|
)
|
|
|
|
(57
|
)
|
|
|
|
(53
|
)
|
|
|
|
(110
|
)
|
Gain (loss) on extinguishment of debt
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(65
|
)
|
|
|
|
-
|
|
|
|
|
(65
|
)
|
|
|
|
3
|
|
|
|
|
(3
|
)
|
|
|
|
-
|
|
Investment income and other
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
(4
|
)
|
|
|
|
(2
|
)
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
$
|
81
|
|
|
|
$
|
24
|
|
|
|
$
|
(97
|
)
|
|
|
$
|
12
|
|
|
|
$
|
20
|
|
|
|
$
|
35
|
|
|
|
$
|
(353
|
)
|
|
|
$
|
(318
|
)
|
Provision (benefit) for income taxes
|
|
|
|
29
|
|
|
|
|
1
|
|
|
|
|
(27
|
)
|
|
|
|
21
|
|
|
|
|
24
|
|
|
|
|
35
|
|
|
|
|
(130
|
)
|
|
|
|
(95
|
)
|
Income (loss) from continuing operations
|
|
|
$
|
52
|
|
|
|
$
|
23
|
|
|
|
$
|
(70
|
)
|
|
|
$
|
(9
|
)
|
|
|
$
|
(4
|
)
|
|
|
$
|
-
|
|
|
|
$
|
(223
|
)
|
|
|
$
|
(223
|
)
|
Income (loss) from discontinued operations
|
|
|
|
16
|
|
|
|
|
(53
|
)
|
|
|
|
(160
|
)
|
|
|
|
(1,525
|
)
|
|
|
|
(1,722
|
)
|
|
|
|
(12
|
)
|
|
|
|
25
|
|
|
|
|
13
|
|
Net income (loss)
|
|
|
$
|
68
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(230
|
)
|
|
|
$
|
(1,534
|
)
|
|
|
$
|
(1,726
|
)
|
|
|
$
|
(12
|
)
|
|
|
$
|
(198
|
)
|
|
|
$
|
(210
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net income (loss) attributable to WPX Energy, Inc.
|
|
|
$
|
67
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(230
|
)
|
|
|
$
|
(1,534
|
)
|
|
|
$
|
(1,727
|
)
|
|
|
$
|
(12
|
)
|
|
|
$
|
(198
|
)
|
|
|
$
|
(210
|
)
|
Less: Dividends on preferred stock
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
9
|
|
|
|
|
5
|
|
|
|
|
6
|
|
|
|
|
11
|
|
Net income (loss) attributable to WPX Energy, Inc. common
stockholders
|
|
|
$
|
67
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(234
|
)
|
|
|
$
|
(1,539
|
)
|
|
|
$
|
(1,736
|
)
|
|
|
$
|
(17
|
)
|
|
|
$
|
(204
|
)
|
|
|
$
|
(221
|
)
|
Amounts attributable to WPX Energy, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
52
|
|
|
|
$
|
23
|
|
|
|
$
|
(74
|
)
|
|
|
$
|
(14
|
)
|
|
|
$
|
(13
|
)
|
|
|
$
|
(5
|
)
|
|
|
$
|
(229
|
)
|
|
|
$
|
(234
|
)
|
Income (loss) from discontinued operations
|
|
|
|
15
|
|
|
|
|
(53
|
)
|
|
|
|
(160
|
)
|
|
|
|
(1,525
|
)
|
|
|
|
(1,723
|
)
|
|
|
|
(12
|
)
|
|
|
|
25
|
|
|
|
|
13
|
|
Net income (loss)
|
|
|
$
|
67
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(234
|
)
|
|
|
$
|
(1,539
|
)
|
|
|
$
|
(1,736
|
)
|
|
|
$
|
(17
|
)
|
|
|
$
|
(204
|
)
|
|
|
$
|
(221
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Production Volumes (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
|
|
|
2,972
|
|
|
|
|
2,832
|
|
|
|
|
3,123
|
|
|
|
|
3,551
|
|
|
|
|
12,479
|
|
|
|
|
3,774
|
|
|
|
|
3,719
|
|
|
|
|
7,493
|
|
Natural gas (MMcf)
|
|
|
|
15,832
|
|
|
|
|
14,913
|
|
|
|
|
16,901
|
|
|
|
|
18,542
|
|
|
|
|
66,187
|
|
|
|
|
16,820
|
|
|
|
|
18,764
|
|
|
|
|
35,583
|
|
Natural gas liquids (MBbls)
|
|
|
|
379
|
|
|
|
|
476
|
|
|
|
|
733
|
|
|
|
|
823
|
|
|
|
|
2,412
|
|
|
|
|
708
|
|
|
|
|
909
|
|
|
|
|
1,617
|
|
Combined equivalent volumes (MBoe) (2)
|
|
|
|
5,990
|
|
|
|
|
5,794
|
|
|
|
|
6,673
|
|
|
|
|
7,465
|
|
|
|
|
25,922
|
|
|
|
|
7,285
|
|
|
|
|
7,755
|
|
|
|
|
15,041
|
|
Per day volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls/d)
|
|
|
|
33.0
|
|
|
|
|
31.1
|
|
|
|
|
33.9
|
|
|
|
|
38.6
|
|
|
|
|
34.2
|
|
|
|
|
41.5
|
|
|
|
|
40.9
|
|
|
|
|
41.2
|
|
Natural gas (MMcf/d)
|
|
|
|
176
|
|
|
|
|
164
|
|
|
|
|
184
|
|
|
|
|
202
|
|
|
|
|
181
|
|
|
|
|
185
|
|
|
|
|
206
|
|
|
|
|
196
|
|
Natural gas liquids (MBbls/d)
|
|
|
|
4.2
|
|
|
|
|
5.2
|
|
|
|
|
8.0
|
|
|
|
|
9.0
|
|
|
|
|
6.6
|
|
|
|
|
7.8
|
|
|
|
|
10.0
|
|
|
|
|
8.9
|
|
Combined equivalent volumes (Mboe/d) (2)
|
|
|
|
66.6
|
|
|
|
|
63.7
|
|
|
|
|
72.5
|
|
|
|
|
81.1
|
|
|
|
|
71.0
|
|
|
|
|
80.1
|
|
|
|
|
85.2
|
|
|
|
|
82.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes our Piceance Basin, Powder River Basin and
international operations, which were classified as discontinued
operations.
|
(2) Mboe is converted using the ratio of one barrel of oil,
condensate or natural gas liquids to six thousand cubic feet of
natural gas.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized average price per unit (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per barrel)
|
|
|
$
|
37.69
|
|
|
|
$
|
48.75
|
|
|
|
$
|
38.23
|
|
|
|
$
|
35.14
|
|
|
|
$
|
39.61
|
|
|
|
$
|
25.62
|
|
|
|
$
|
38.38
|
|
|
|
$
|
31.96
|
|
Natural gas (per Mcf)
|
|
|
$
|
2.59
|
|
|
|
$
|
1.76
|
|
|
|
$
|
2.18
|
|
|
|
$
|
1.81
|
|
|
|
$
|
2.08
|
|
|
|
$
|
1.52
|
|
|
|
$
|
1.23
|
|
|
|
$
|
1.37
|
|
Natural gas liquids (per barrel)
|
|
|
$
|
9.30
|
|
|
|
$
|
9.81
|
|
|
|
$
|
8.76
|
|
|
|
$
|
9.75
|
|
|
|
$
|
9.39
|
|
|
|
$
|
7.14
|
|
|
|
$
|
11.21
|
|
|
|
$
|
9.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes our Piceance Basin, Powder River Basin and
international operations, which were classified as discontinued
operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses per Boe (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and facility operating
|
|
|
$
|
5.90
|
|
|
|
$
|
5.54
|
|
|
|
$
|
5.07
|
|
|
|
$
|
5.82
|
|
|
|
$
|
5.59
|
|
|
|
$
|
5.74
|
|
|
|
$
|
5.34
|
|
|
|
$
|
5.53
|
|
Gathering, processing and transportation
|
|
|
$
|
2.91
|
|
|
|
$
|
2.65
|
|
|
|
$
|
2.53
|
|
|
|
$
|
1.95
|
|
|
|
$
|
2.48
|
|
|
|
$
|
2.17
|
|
|
|
$
|
2.57
|
|
|
|
$
|
2.38
|
|
Taxes other than income
|
|
|
$
|
2.45
|
|
|
|
$
|
2.83
|
|
|
|
$
|
2.06
|
|
|
|
$
|
2.26
|
|
|
|
$
|
2.38
|
|
|
|
$
|
1.47
|
|
|
|
$
|
2.05
|
|
|
|
$
|
1.77
|
|
Depreciation, depletion and amortization
|
|
|
$
|
19.56
|
|
|
|
$
|
21.21
|
|
|
|
$
|
20.37
|
|
|
|
$
|
20.43
|
|
|
|
$
|
20.39
|
|
|
|
$
|
20.93
|
|
|
|
$
|
21.02
|
|
|
|
$
|
20.98
|
|
General and administrative
|
|
|
$
|
8.94
|
|
|
|
$
|
9.21
|
|
|
|
$
|
6.72
|
|
|
|
$
|
7.88
|
|
|
|
$
|
8.12
|
|
|
|
$
|
7.34
|
|
|
|
$
|
7.09
|
|
|
|
$
|
7.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes our Piceance Basin, Powder River Basin and
international operations, which were classified as discontinued
operations.
|
|
|
WPX Energy, Inc.
|
Reconciliation of Adjusted EPS and EBITDAX (NON-GAAP)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2016
|
(Dollars in millions, except per share amounts)
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to WPX
Energy, Inc. available to common stockholders
|
|
|
$
|
52
|
|
|
|
$
|
23
|
|
|
|
$
|
(74
|
)
|
|
|
$
|
(14
|
)
|
|
|
$
|
(13
|
)
|
|
|
$
|
(5
|
)
|
|
|
$
|
(229
|
)
|
|
|
$
|
(234
|
)
|
Income (loss) from continuing operations - diluted earnings per
share
|
|
|
$
|
0.25
|
|
|
|
$
|
0.11
|
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
(0.06
|
)
|
|
|
$
|
(0.02
|
)
|
|
|
$
|
(0.76
|
)
|
|
|
$
|
(0.81
|
)
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments- exploratory related
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
47
|
|
|
|
$
|
3
|
|
|
|
$
|
50
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Net (gain) loss on sales of assets
|
|
|
$
|
(69
|
)
|
|
|
$
|
(208
|
)
|
|
|
$
|
(2
|
)
|
|
|
$
|
(70
|
)
|
|
|
$
|
(349
|
)
|
|
|
$
|
(198
|
)
|
|
|
$
|
(4
|
)
|
|
|
$
|
(202
|
)
|
Contract termination and early rig release expenses
|
|
|
$
|
26
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
5
|
|
|
|
$
|
31
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Accrual for certain future gathering obligations associated with an
abandoned area
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
23
|
|
|
|
$
|
23
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Costs related to severance and relocation
|
|
|
$
|
8
|
|
|
|
$
|
7
|
|
|
|
$
|
1
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
15
|
|
|
|
$
|
3
|
|
|
|
$
|
7
|
|
|
|
$
|
10
|
|
Costs related to acquisition (including loss on acquired debt
extinguishment)
|
|
|
$
|
-
|
|
|
|
$
|
1
|
|
|
|
$
|
103
|
|
|
|
$
|
1
|
|
|
|
$
|
105
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
Previously capitalized costs expensed following credit facility
amendment
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
4
|
|
|
|
$
|
-
|
|
|
|
$
|
4
|
|
(Gain) loss on retirement of debt
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
(3
|
)
|
|
|
$
|
3
|
|
|
|
$
|
-
|
|
Unrealized MTM (gain) loss
|
|
|
$
|
30
|
|
|
|
$
|
203
|
|
|
|
$
|
(50
|
)
|
|
|
$
|
16
|
|
|
|
$
|
199
|
|
|
|
$
|
76
|
|
|
|
$
|
223
|
|
|
|
$
|
299
|
|
Total pre-tax adjustments
|
|
|
$
|
(5
|
)
|
|
|
$
|
3
|
|
|
|
$
|
99
|
|
|
|
$
|
(23
|
)
|
|
|
$
|
74
|
|
|
|
$
|
(118
|
)
|
|
|
$
|
229
|
|
|
|
$
|
111
|
|
Less tax effect for above items
|
|
|
$
|
2
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
(35
|
)
|
|
|
$
|
7
|
|
|
|
$
|
(27
|
)
|
|
|
$
|
43
|
|
|
|
$
|
(85
|
)
|
|
|
$
|
(41
|
)
|
Impact of state deferred tax rate change
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
7
|
|
|
|
$
|
7
|
|
|
|
$
|
14
|
|
|
|
$
|
-
|
|
|
|
$
|
14
|
|
Impact of state valuation allowance
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
8
|
|
|
|
$
|
-
|
|
|
|
$
|
8
|
|
Total adjustments, after-tax
|
|
|
$
|
(3
|
)
|
|
|
$
|
2
|
|
|
|
$
|
64
|
|
|
|
$
|
(9
|
)
|
|
|
$
|
54
|
|
|
|
$
|
(53
|
)
|
|
|
$
|
144
|
|
|
|
$
|
92
|
|
Adjusted income (loss) from continuing operations available to
common stockholders
|
|
|
$
|
49
|
|
|
|
$
|
25
|
|
|
|
$
|
(10
|
)
|
|
|
$
|
(23
|
)
|
|
|
$
|
41
|
|
|
|
$
|
(58
|
)
|
|
|
$
|
(85
|
)
|
|
|
$
|
(142
|
)
|
Adjusted diluted earnings (loss) per common share
|
|
|
$
|
0.24
|
|
|
|
$
|
0.12
|
|
|
|
$
|
(0.04
|
)
|
|
|
$
|
(0.08
|
)
|
|
|
$
|
0.17
|
|
|
|
$
|
(0.21
|
)
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.49
|
)
|
Diluted weighted-average shares (millions)
|
|
|
|
205.9
|
|
|
|
|
206.8
|
|
|
|
|
251.2
|
|
|
|
|
275.4
|
|
|
|
|
234.2
|
|
|
|
|
276.1
|
|
|
|
|
300.7
|
|
|
|
|
288.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
68
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(230
|
)
|
|
|
$
|
(1,534
|
)
|
|
|
$
|
(1,726
|
)
|
|
|
$
|
(12
|
)
|
|
|
$
|
(198
|
)
|
|
|
$
|
(210
|
)
|
Interest expense
|
|
|
|
33
|
|
|
|
|
32
|
|
|
|
|
65
|
|
|
|
|
57
|
|
|
|
|
187
|
|
|
|
|
57
|
|
|
|
|
53
|
|
|
|
|
110
|
|
Provision (benefit) for income taxes
|
|
|
|
29
|
|
|
|
|
1
|
|
|
|
|
(27
|
)
|
|
|
|
21
|
|
|
|
|
24
|
|
|
|
|
35
|
|
|
|
|
(130
|
)
|
|
|
|
(95
|
)
|
Depreciation, depletion and amortization
|
|
|
|
117
|
|
|
|
|
123
|
|
|
|
|
136
|
|
|
|
|
152
|
|
|
|
|
528
|
|
|
|
|
152
|
|
|
|
|
163
|
|
|
|
|
315
|
|
Exploration expenses
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
56
|
|
|
|
|
16
|
|
|
|
|
85
|
|
|
|
|
9
|
|
|
|
|
12
|
|
|
|
|
21
|
|
EBITDAX
|
|
|
|
254
|
|
|
|
|
132
|
|
|
|
|
-
|
|
|
|
|
(1,288
|
)
|
|
|
|
(902
|
)
|
|
|
|
241
|
|
|
|
|
(100
|
)
|
|
|
|
141
|
|
Accrual for certain future gathering obligations associated with an
abandoned area
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net (gain) loss on sales of assets
|
|
|
|
(69
|
)
|
|
|
|
(208
|
)
|
|
|
|
(2
|
)
|
|
|
|
(70
|
)
|
|
|
|
(349
|
)
|
|
|
|
(198
|
)
|
|
|
|
(4
|
)
|
|
|
|
(202
|
)
|
RKI acquisition costs and loss on extinguishment of acquired debt
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
87
|
|
|
|
|
-
|
|
|
|
|
88
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net (gain) loss on derivatives
|
|
|
|
(105
|
)
|
|
|
|
71
|
|
|
|
|
(205
|
)
|
|
|
|
(179
|
)
|
|
|
|
(418
|
)
|
|
|
|
(57
|
)
|
|
|
|
154
|
|
|
|
|
97
|
|
Net cash received (paid) related to settlement of derivatives
|
|
|
|
135
|
|
|
|
|
132
|
|
|
|
|
155
|
|
|
|
|
195
|
|
|
|
|
617
|
|
|
|
|
133
|
|
|
|
|
69
|
|
|
|
|
202
|
|
(Income) loss from discontinued operations
|
|
|
|
(16
|
)
|
|
|
|
53
|
|
|
|
|
160
|
|
|
|
|
1,525
|
|
|
|
|
1,722
|
|
|
|
|
12
|
|
|
|
|
(25
|
)
|
|
|
|
(13
|
)
|
Adjusted EBITDAX
|
|
|
$
|
199
|
|
|
|
$
|
181
|
|
|
|
$
|
195
|
|
|
|
$
|
206
|
|
|
|
$
|
781
|
|
|
|
$
|
131
|
|
|
|
$
|
94
|
|
|
|
$
|
225
|
|
|
|
WPX Energy, Inc.
|
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
|
(Millions, except per share amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil sales
|
|
|
$
|
142
|
|
|
|
$
|
138
|
|
|
|
$
|
239
|
|
|
|
$
|
250
|
|
Natural gas sales
|
|
|
|
24
|
|
|
|
|
26
|
|
|
|
|
49
|
|
|
|
|
67
|
|
Natural gas liquid sales
|
|
|
|
10
|
|
|
|
|
5
|
|
|
|
|
15
|
|
|
|
|
8
|
|
Total product revenues
|
|
|
|
176
|
|
|
|
|
169
|
|
|
|
|
303
|
|
|
|
|
325
|
|
Gas management
|
|
|
|
116
|
|
|
|
|
56
|
|
|
|
|
147
|
|
|
|
|
213
|
|
Net gain (loss) on derivatives
|
|
|
|
(154
|
)
|
|
|
|
(71
|
)
|
|
|
|
(97
|
)
|
|
|
|
34
|
|
Other
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
2
|
|
Total revenues
|
|
|
|
138
|
|
|
|
|
154
|
|
|
|
|
354
|
|
|
|
|
574
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and facility operating
|
|
|
|
41
|
|
|
|
|
32
|
|
|
|
|
83
|
|
|
|
|
67
|
|
Gathering, processing and transportation
|
|
|
|
20
|
|
|
|
|
16
|
|
|
|
|
36
|
|
|
|
|
33
|
|
Taxes other than income
|
|
|
|
16
|
|
|
|
|
16
|
|
|
|
|
27
|
|
|
|
|
31
|
|
Gas management, including charges for unutilized pipeline capacity
|
|
|
|
132
|
|
|
|
|
58
|
|
|
|
|
171
|
|
|
|
|
167
|
|
Exploration
|
|
|
|
12
|
|
|
|
|
6
|
|
|
|
|
21
|
|
|
|
|
13
|
|
Depreciation, depletion and amortization
|
|
|
|
163
|
|
|
|
|
123
|
|
|
|
|
315
|
|
|
|
|
240
|
|
Net (gain) loss on sales of assets
|
|
|
|
(4
|
)
|
|
|
|
(208
|
)
|
|
|
|
(202
|
)
|
|
|
|
(277
|
)
|
General and administrative
|
|
|
|
55
|
|
|
|
|
53
|
|
|
|
|
108
|
|
|
|
|
107
|
|
Other - net
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
|
25
|
|
Total costs and expenses
|
|
|
|
437
|
|
|
|
|
99
|
|
|
|
|
563
|
|
|
|
|
406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
(299
|
)
|
|
|
|
55
|
|
|
|
|
(209
|
)
|
|
|
|
168
|
|
Interest expense
|
|
|
|
(53
|
)
|
|
|
|
(32
|
)
|
|
|
|
(110
|
)
|
|
|
|
(65
|
)
|
Investment income and other
|
|
|
|
(1
|
)
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
2
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
(353
|
)
|
|
|
|
24
|
|
|
|
|
(318
|
)
|
|
|
|
105
|
|
Provision (benefit) for income taxes
|
|
|
|
(130
|
)
|
|
|
|
1
|
|
|
|
|
(95
|
)
|
|
|
|
30
|
|
Income (loss) from continuing operations
|
|
|
|
(223
|
)
|
|
|
|
23
|
|
|
|
|
(223
|
)
|
|
|
|
75
|
|
Income (loss) from discontinued operations
|
|
|
|
25
|
|
|
|
|
(53
|
)
|
|
|
|
13
|
|
|
|
|
(37
|
)
|
Net income (loss)
|
|
|
|
(198
|
)
|
|
|
|
(30
|
)
|
|
|
|
(210
|
)
|
|
|
|
38
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
|
Net income (loss) attributable to WPX Energy, Inc.
|
|
|
|
(198
|
)
|
|
|
|
(30
|
)
|
|
|
|
(210
|
)
|
|
|
|
37
|
|
Less: Dividends on preferred stock
|
|
|
|
6
|
|
|
|
|
-
|
|
|
|
|
11
|
|
|
|
|
-
|
|
Net income (loss) attributable to WPX Energy, Inc. common
stockholders
|
|
|
$
|
(204
|
)
|
|
|
$
|
(30
|
)
|
|
|
$
|
(221
|
)
|
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to WPX Energy, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
(229
|
)
|
|
|
$
|
23
|
|
|
|
$
|
(234
|
)
|
|
|
$
|
75
|
|
Income (loss) from discontinued operations
|
|
|
|
25
|
|
|
|
|
(53
|
)
|
|
|
|
13
|
|
|
|
|
(38
|
)
|
Net income (loss)
|
|
|
$
|
(204
|
)
|
|
|
$
|
(30
|
)
|
|
|
$
|
(221
|
)
|
|
|
$
|
37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
(0.76
|
)
|
|
|
$
|
0.11
|
|
|
|
$
|
(0.81
|
)
|
|
|
$
|
0.37
|
|
Income (loss) from discontinued operations
|
|
|
|
0.08
|
|
|
|
|
(0.25
|
)
|
|
|
|
0.04
|
|
|
|
|
(0.19
|
)
|
Net income (loss)
|
|
|
$
|
(0.68
|
)
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
(0.77
|
)
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares (millions)
|
|
|
|
300.7
|
|
|
|
|
205.0
|
|
|
|
|
288.2
|
|
|
|
|
204.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
(0.76
|
)
|
|
|
$
|
0.11
|
|
|
|
$
|
(0.81
|
)
|
|
|
$
|
0.37
|
|
Income (loss) from discontinued operations
|
|
|
|
0.08
|
|
|
|
|
(0.25
|
)
|
|
|
|
0.04
|
|
|
|
|
(0.19
|
)
|
Net income (loss)
|
|
|
$
|
(0.68
|
)
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
(0.77
|
)
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average shares (millions)
|
|
|
|
300.7
|
|
|
|
|
206.8
|
|
|
|
|
288.2
|
|
|
|
|
206.4
|
|
|
|
WPX Energy, Inc.
|
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
|
December 31, 2015
|
ASSETS
|
|
|
(Millions)
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,031
|
|
|
|
$
|
38
|
|
Accounts receivable, net of allowance of $6 million as of June 30,
2016 and December 31, 2015
|
|
|
|
192
|
|
|
|
|
300
|
|
Derivative assets
|
|
|
|
101
|
|
|
|
|
308
|
|
Inventories
|
|
|
|
37
|
|
|
|
|
46
|
|
Assets classified as held for sale
|
|
|
|
8
|
|
|
|
|
178
|
|
Other
|
|
|
|
26
|
|
|
|
|
23
|
|
Total current assets
|
|
|
|
1,395
|
|
|
|
|
893
|
|
Properties and equipment (successful efforts method of accounting)
|
|
|
|
8,602
|
|
|
|
|
8,415
|
|
Less: Accumulated depreciation, depletion and amortization
|
|
|
|
(2,184
|
)
|
|
|
|
(1,893
|
)
|
Properties and equipment, net
|
|
|
|
6,418
|
|
|
|
|
6,522
|
|
Derivative assets
|
|
|
|
21
|
|
|
|
|
51
|
|
Assets classified as held for sale
|
|
|
|
-
|
|
|
|
|
894
|
|
Other noncurrent assets
|
|
|
|
28
|
|
|
|
|
33
|
|
Total assets
|
|
|
$
|
7,862
|
|
|
|
$
|
8,393
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
226
|
|
|
|
$
|
278
|
|
Accrued and other current liabilities
|
|
|
|
264
|
|
|
|
|
301
|
|
Liabilities associated with assets held for sale
|
|
|
|
2
|
|
|
|
|
140
|
|
Current portion of long-term debt, net
|
|
|
|
160
|
|
|
|
|
1
|
|
Derivative liabilities
|
|
|
|
45
|
|
|
|
|
13
|
|
Total current liabilities
|
|
|
|
697
|
|
|
|
|
733
|
|
Deferred income taxes
|
|
|
|
390
|
|
|
|
|
465
|
|
Long-term debt, net
|
|
|
|
2,572
|
|
|
|
|
3,189
|
|
Derivative liabilities
|
|
|
|
44
|
|
|
|
|
2
|
|
Asset retirement obligations
|
|
|
|
101
|
|
|
|
|
99
|
|
Liabilities associated with assets held for sale
|
|
|
|
-
|
|
|
|
|
133
|
|
Other noncurrent liabilities
|
|
|
|
200
|
|
|
|
|
237
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Preferred stock (100 million shares authorized at $0.01 par value; 7
million shares issued at June 30, 2016 and December 31, 2015)
|
|
|
|
339
|
|
|
|
|
339
|
|
Common stock (2 billion shares authorized at $0.01 par value; 334.0
million shares issued at June 30, 2016 and 275.4 million shares
issued at December 31, 2015)
|
|
|
|
3
|
|
|
|
|
3
|
|
Additional paid-in-capital
|
|
|
|
6,697
|
|
|
|
|
6,164
|
|
Accumulated deficit
|
|
|
|
(3,181
|
)
|
|
|
|
(2,971
|
)
|
Total stockholders' equity
|
|
|
|
3,858
|
|
|
|
|
3,535
|
|
Total liabilities and equity
|
|
|
$
|
7,862
|
|
|
|
$
|
8,393
|
|
|
|
WPX Energy, Inc.
|
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
|
(Millions)
|
Operating Activities(a)
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(210
|
)
|
|
|
$
|
38
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
324
|
|
|
|
|
443
|
|
Deferred income tax provision (benefit)
|
|
|
|
(82
|
)
|
|
|
|
(17
|
)
|
Provision for impairment of properties and equipment (including
certain exploration expenses)
|
|
|
|
19
|
|
|
|
|
26
|
|
Net (gain) loss on derivatives in continuing operations
|
|
|
|
97
|
|
|
|
|
(34
|
)
|
Net settlements related to derivatives in continuing operations
|
|
|
|
202
|
|
|
|
|
267
|
|
Amortization of stock-based awards
|
|
|
|
17
|
|
|
|
|
20
|
|
Net gain on sales of domestic assets and international interests
|
|
|
|
(254
|
)
|
|
|
|
(318
|
)
|
Unrealized loss on derivatives included in discontinued operations
|
|
|
|
46
|
|
|
|
|
-
|
|
Cash provided (used) by operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
102
|
|
|
|
|
176
|
|
Inventories
|
|
|
|
9
|
|
|
|
|
(2
|
)
|
Margin deposits and customer margin deposits payable
|
|
|
|
-
|
|
|
|
|
21
|
|
Other current assets
|
|
|
|
3
|
|
|
|
|
(4
|
)
|
Accounts payable
|
|
|
|
(28
|
)
|
|
|
|
(145
|
)
|
Income taxes payable
|
|
|
|
(33
|
)
|
|
|
|
-
|
|
Accrued and other current liabilities
|
|
|
|
(103
|
)
|
|
|
|
(33
|
)
|
Accrued liabilities for retained transportation and gathering
contracts related to discontinued operations
|
|
|
|
(30
|
)
|
|
|
|
-
|
|
Other, including changes in other noncurrent assets and liabilities
|
|
|
|
6
|
|
|
|
|
(8
|
)
|
Net cash provided by operating activities (a)
|
|
|
|
85
|
|
|
|
|
430
|
|
|
|
|
|
|
|
|
Investing Activities (a)
|
|
|
|
|
|
|
Capital expenditures (b)
|
|
|
|
(291
|
)
|
|
|
|
(679
|
)
|
Proceeds from sales of domestic assets and international interests
|
|
|
|
1,139
|
|
|
|
|
772
|
|
Other
|
|
|
|
(4
|
)
|
|
|
|
2
|
|
Net cash provided by (used in) investing activities (a)
|
|
|
|
844
|
|
|
|
|
95
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
Proceeds from common stock
|
|
|
|
540
|
|
|
|
|
2
|
|
Dividends paid on preferred stock
|
|
|
|
(11
|
)
|
|
|
|
-
|
|
Borrowings on credit facility
|
|
|
|
380
|
|
|
|
|
181
|
|
Payments on credit facility
|
|
|
|
(645
|
)
|
|
|
|
(461
|
)
|
Payments for retirement of debt
|
|
|
|
(196
|
)
|
|
|
|
-
|
|
Payments for debt issuance costs, credit facility amendment and fees
|
|
|
|
(3
|
)
|
|
|
|
-
|
|
Other
|
|
|
|
(1
|
)
|
|
|
|
-
|
|
Net cash provided by (used in) financing activities
|
|
|
|
64
|
|
|
|
|
(278
|
)
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
993
|
|
|
|
|
247
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
38
|
|
|
|
|
70
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
1,031
|
|
|
|
$
|
317
|
|
|
|
|
|
|
|
|
________
|
|
|
|
|
|
|
(a) Amounts also reflect activity related to discontinued operations
unless otherwise noted.
|
|
|
|
|
|
|
(b) Increase to properties and equipment
|
|
|
$
|
(264
|
)
|
|
|
$
|
(435
|
)
|
Changes in related accounts payable and accounts receivable
|
|
|
|
(27
|
)
|
|
|
|
(244
|
)
|
Capital expenditures
|
|
|
$
|
(291
|
)
|
|
|
$
|
(679
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803006428/en/
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