WPX Energy (NYSE: WPX) today reported an unaudited fourth-quarter 2015
net loss attributable to common shareholders of $1.539 billion, or a
loss of $5.59 per share on a diluted basis, including a $2.3 billion
non-cash impairment of oil and gas properties.
2015 HIGHLIGHTS
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Substantial progress reshaping company and portfolio
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Closed transformational Permian acquisition; Delaware Basin wells
exceeding expectations
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Closed $1 billion in asset sales and announced another $1.2 billion
in sales since Dec. 31
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Reduced cash operating expenses by $143 million year-over-year
The adjusted net loss from continuing operations (a non-GAAP financial
measure that excludes certain items typically excluded from published
analyst estimates) in the fourth quarter was $67 million, or a loss of
$0.24 per share. Adjusted EBITDAX (a non-GAAP financial measure) for the
fourth quarter was $240 million. Reconciliations for non-GAAP financial
measures are available in the tables that accompany this press release.
For full-year 2015, WPX reported a net loss attributable to common
shareholders of $1.736 billion, or a loss of $7.42 per share, which was
driven by the $2.3 billion non-cash impairment; an adjusted net loss
from continuing operations of $116 million, or a loss of $0.50 per
share; and adjusted EBITDAX of $954 million. Adjusted EBITDAX was only 1
percent lower than the prior year, despite a dramatic decrease in
commodity prices.
For full-year 2015, the weighted average gross sales price – prior to
revenue deductions – for oil decreased 49 percent vs. a year ago to
$40.53 per barrel. Natural gas prices decreased 35 percent to $2.56 per
Mcf. NGL prices decreased 55 percent to $19.21 per barrel.
Net cash provided by operating activities for full-year 2015 was $811
million, including $182 million in the fourth quarter. At Dec. 31, 2015,
WPX had approximately $38 million in unrestricted cash and cash
equivalents. WPX’s total liquidity at year-end was approximately $1.5
billion including its revolver capacity.
OPERATIONS UPDATE
Total company production volumes were 173.1 Mboe per day in the fourth
quarter. Oil volumes accounted for 23 percent of production, reaching a
new company best of 40,000 barrels per day in the quarter.
Year-over-year oil volumes increased 41 percent. NGL volumes increased
17 percent year-over-year. Total liquids volumes in the fourth quarter
were 62,000 barrels per day.
Piceance Basin production accounted for approximately 53 percent of
total fourth-quarter volumes. Piceance Basin operations will be
reclassified as discontinued operations in future periods as a result of
the announced sale subsequent to year-end.
WPX’s capital expenditure activity for full-year 2015 was $865 million,
including $225 million in the fourth quarter. Capital spending was
within the range of the company’s guidance. Overall, WPX participated in
the completion of 223 gross (157.3 net) wells in 2015, including 47
gross (35.48 net) in the fourth quarter.
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WELL COMPLETIONS
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FULL YEAR 2015
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FOURTH QUARTER
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Gross Basis
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Operated
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Non-Op
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Operated
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Non-Op
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Permian Basin
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13
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7
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11
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2
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Williston Basin
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24
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10
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8
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–
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San Juan Basin
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57
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1
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8
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–
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Other, including Piceance
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73
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38
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14
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4
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TOTAL
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167
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56
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41
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6
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PERMIAN BASIN
WPX operates in the core of the world-class Delaware Basin, where the
company has more than 1.1 billion barrels of equivalent net resource
potential. Current activity is concentrated in the Wolfcamp and Bone
Spring plays. The company plans to deploy up to three rigs in the basin
this year and has flexibility to adjust the activity level based on
commodity prices.
Delaware Basin production averaged 16.5 Mboe per day (55 percent oil) in
the fourth quarter. Production was negatively impacted by an outage at a
third-party gas processing plant.
WPX drilled 10 wells (gross) in the Delaware Basin in the fourth
quarter, consisting of six Wolfcamp A wells, three Bone Spring wells and
one vertical Delaware Sand well. WPX achieved company record drilling
times for a Wolfcamp well (24.1 days) and a Bone Spring well (15.3 days).
WPX continues to implement enhanced drilling and completion designs in
the Delaware Basin, including longer lateral lengths (1.5 miles), more
sand per stage (1,500-2,000 pounds per foot) and tighter perforation
cluster spacing. The company also is evaluating the potential to drill
up to six two-mile laterals in 2016.
WPX has already reduced D&C costs by more than $1 million per well to
reach a $6 million average, with the goal of reaching $5 million per
well by the end of this year.
WPX’s Covington 46-3H well continues to produce strong early results on
a 4,300-foot lateral, currently tracking above an 1,100 Mboe EUR. Three
new Wolfcamp A wells on WPX’s CBR 32 pad are tracking toward a 900 Mboe
EUR. Each of the CBR 32 wells has a 4,100-foot lateral.
Overall, WPX’s wells completed with a design of 1,500 pounds of sand per
foot have an average EUR exceeding 850 Mboe in early stages. The
company’s type curve used in the RKI acquisition contemplated an EUR of
670 Mboe.
WILLISTON BASIN
WPX is active in the Williston Basin’s Bakken and Three Forks
formations. Approximately 85 percent of the production stream is oil.
WPX plans to deploy one rig in the basin this year and has flexibility
to adjust the activity level based on commodity prices. WPX plans to
defer completions in the Williston after completing a six-well pad in
March, but is considering completing more wells depending on commodity
prices.
Williston production averaged 24.8 Mboe per day in the fourth quarter.
Year-over-year, Williston oil volumes increased 12 percent in 2015 to an
average of 21,800 barrels per day. LOE averaged $5.72 per barrel in
2015, down 37 percent vs. $9.05 per barrel a year ago.
WPX drilled seven wells (gross) in the Williston in the fourth quarter,
consisting of three Bakken wells and four Three Forks wells. Laterals
ranged from two miles to three miles. During 2015, WPX improved its
drilling times on 15,000-foot laterals from an average of 37 days on its
Olive Mae pad to 23 days on the Peterson pad.
After 127 days on production, recent two-mile laterals on the Mandaree
pad that were completed using high-intensity larger completions have
cumulative production of 158 Mboe. This is tracking 78 percent above the
company’s blended type curve of 750 Mboe.
Recent three-mile laterals on the Olive Mae and Edward Flies Away pads
are producing results in line with an 1,100 Mboe EUR. Two of the wells
were completed with 15-million-pound stimulations.
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 at higher
commodity prices. WPX plans to deploy one rig in the basin this year and
has flexibility to adjust the activity level based on commodity prices.
San Juan Basin production averaged 36.3 Mboe per day in the fourth
quarter, which is 31 percent higher than a year ago. Year-over-year,
Gallup oil volumes increased 128 percent in 2015 to an average of 8,900
barrels per day. Natural gas production increased 17 percent to 129
MMcf/d in 2015. WPX’s LOE for all of its operations in the basin
averaged $4.71 per barrel in 2015, down 16 percent vs. $5.62 per barrel
a year ago.
WPX drilled four wells (gross) in the San Juan Basin in the fourth
quarter, consisting of three Gallup oil wells and one gas well in the
dry Mancos. WPX drilled one of the oil wells in just 6.5 days, a new
best for the company.
Early results from three regressive Gallup wells drilled in the third
quarter indicate potential EURs significantly higher than previous
Gallup wells. The average for the three wells at this point is trending
above a 500 Mbo EUR. These wells have an average lateral length of
nearly 6,300 feet.
Additionally, WPX received final approval from the BLM to form the West
Lybrook unit. WPX has plans for up to 54 laterals in the unit. Drilling
on a six-well pad in West Lybrook commences this month. The unit allows
for longer laterals while minimizing surface activity.
FINANCIAL FLEXIBILITY
In addition to its year-end liquidity, WPX is scheduled to receive
approximately $1.2 billion cash (prior to closing adjustments) from the
previously announced sales of its Piceance subsidiary and its San Juan
Basin gathering system. The sale of the San Juan Basin gathering system
is expected to close in the first quarter, followed by the anticipated
close of the Piceance transaction in the second quarter.
The company has 29,380 barrels of oil per day hedged at $60.85 per
barrel and 213,604 MMBtu per day of natural gas hedged at $3.79 per
MMBtu in 2016. Additionally, WPX has 15,544 barrels of oil per day
hedged at an average price of $54.24 per barrel in 2017.
The company also has repurchased another $28 million of its 2017 notes
at a discount to par, reducing the $400 million maturity by a total of
$96 million to date. After the 2017 notes, the next debt maturity does
not occur until 2020.
2015 PROVED RESERVES
WPX’s proved reserves at Dec. 31, 2015, were 583 MMBoe, or approximately
3.5 trillion cubic feet equivalent. Fifty-two percent of proved reserves
are associated with the Piceance subsidiary that is being divested.
Permian proved reserves were 92.3 MMBoe. Williston proved reserves were
93.1 MMBoe. San Juan proved reserves were 86.2 MMBoe. WPX also has 7.7
MMBoe of proved reserves in noncore areas. Reserve levels reflect the
impact of low commodity prices.
2016 GUIDANCE
At current commodity prices, WPX plans to execute a capital budget
ranging from $350 million to $450 million, nearly all for drilling and
completion activity. Over half of the capital is targeted for
development in the Delaware Basin.
WPX expects total production ranging from 75 to 80 Mboe/d, with the exit
rate for oil in 2016 essentially flat compared with the exit rate at the
end of 2015.
Cash operating expense (not including DD&A) is estimated at $10 to
$11.50 per Boe. WPX is targeting an annualized run rate of $150 million
for G&A by fourth-quarter 2016. Additional information about 2016
guidance is available in a slide presentation at www.wpxenergy.com.
CONFERENCE CALL AND WEBCAST
The company’s next 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.
A limited number of phone lines will be available at (844) 215-3288.
International callers should dial (615) 247-5915. The conference
identification code is 38919364. A replay will be available on WPX’s
website for one year.
Form 10-K
WPX plans to file its 2015 Form 10-K 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
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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2014
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2015
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(Dollars in millions)
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1st Qtr
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2nd Qtr
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3rd Qtr
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4th Qtr
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YTD
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1st Qtr
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2nd Qtr
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3rd Qtr
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4th Qtr
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YTD
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Revenues:
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Product revenues:
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Oil and condensate sales
|
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$
|
149
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|
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$
|
194
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|
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$
|
199
|
|
|
|
$
|
182
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|
|
|
$
|
724
|
|
|
|
$
|
117
|
|
|
|
$
|
145
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|
|
|
$
|
124
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|
|
|
$
|
128
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|
$
|
514
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|
|
|
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|
Natural gas sales
|
|
|
|
|
317
|
|
|
|
|
262
|
|
|
|
|
201
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|
|
|
|
222
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|
|
|
|
1,002
|
|
|
|
|
167
|
|
|
|
|
127
|
|
|
|
|
146
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|
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|
|
123
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|
|
|
|
563
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|
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|
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|
Natural gas liquid sales
|
|
|
|
|
61
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|
|
|
|
54
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|
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|
|
53
|
|
|
|
|
37
|
|
|
|
|
205
|
|
|
|
|
23
|
|
|
|
|
25
|
|
|
|
|
24
|
|
|
|
|
24
|
|
|
|
|
96
|
|
|
|
|
|
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|
Total product revenues
|
|
|
|
|
527
|
|
|
|
|
510
|
|
|
|
|
453
|
|
|
|
|
441
|
|
|
|
|
1,931
|
|
|
|
|
307
|
|
|
|
|
297
|
|
|
|
|
294
|
|
|
|
|
275
|
|
|
|
|
1,173
|
|
|
|
|
|
Gas management
|
|
|
|
|
561
|
|
|
|
|
231
|
|
|
|
|
145
|
|
|
|
|
183
|
|
|
|
|
1,120
|
|
|
|
|
158
|
|
|
|
|
57
|
|
|
|
|
35
|
|
|
|
|
38
|
|
|
|
|
288
|
|
|
|
|
|
Net gain (loss) on derivatives
|
|
|
|
|
(195
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)
|
|
|
|
(17
|
)
|
|
|
|
148
|
|
|
|
|
498
|
|
|
|
|
434
|
|
|
|
|
105
|
|
|
|
|
(71
|
)
|
|
|
|
205
|
|
|
|
|
179
|
|
|
|
|
418
|
|
|
|
|
|
Other
|
|
|
|
|
1
|
|
|
|
|
3
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|
|
|
|
1
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|
|
|
|
3
|
|
|
|
|
8
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
9
|
|
|
|
|
|
|
|
Total revenues
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|
|
|
|
894
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|
|
|
|
727
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|
|
|
|
747
|
|
|
|
|
1,125
|
|
|
|
|
3,493
|
|
|
|
|
572
|
|
|
|
|
284
|
|
|
|
|
537
|
|
|
|
|
495
|
|
|
|
|
1,888
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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Costs and expenses:
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|
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|
|
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and facility operating
|
|
|
|
|
60
|
|
|
|
|
59
|
|
|
|
|
63
|
|
|
|
|
62
|
|
|
|
|
244
|
|
|
|
|
57
|
|
|
|
|
51
|
|
|
|
|
50
|
|
|
|
|
62
|
|
|
|
|
220
|
|
|
|
|
|
Gathering, processing and transportation
|
|
|
|
|
89
|
|
|
|
|
78
|
|
|
|
|
82
|
|
|
|
|
79
|
|
|
|
|
328
|
|
|
|
|
73
|
|
|
|
|
69
|
|
|
|
|
75
|
|
|
|
|
65
|
|
|
|
|
282
|
|
|
|
|
|
Taxes other than income
|
|
|
|
|
35
|
|
|
|
|
33
|
|
|
|
|
32
|
|
|
|
|
26
|
|
|
|
|
126
|
|
|
|
|
22
|
|
|
|
|
19
|
|
|
|
|
17
|
|
|
|
|
17
|
|
|
|
|
75
|
|
|
|
|
|
Gas management, including charges for unutilized pipeline capacity
|
|
|
|
|
391
|
|
|
|
|
233
|
|
|
|
|
164
|
|
|
|
|
199
|
|
|
|
|
987
|
|
|
|
|
109
|
|
|
|
|
59
|
|
|
|
|
43
|
|
|
|
|
51
|
|
|
|
|
262
|
|
|
|
|
|
Exploration
|
|
|
|
|
15
|
|
|
|
|
54
|
|
|
|
|
28
|
|
|
|
|
76
|
|
|
|
|
173
|
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
56
|
|
|
|
|
42
|
|
|
|
|
111
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
193
|
|
|
|
|
202
|
|
|
|
|
201
|
|
|
|
|
214
|
|
|
|
|
810
|
|
|
|
|
216
|
|
|
|
|
227
|
|
|
|
|
242
|
|
|
|
|
255
|
|
|
|
|
940
|
|
|
|
|
|
Impairment of producing properties and costs of acquired unproved
reserves
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,308
|
|
|
|
|
2,308
|
|
|
|
|
|
Net (gain) loss on sales of assets
|
|
|
|
|
-
|
|
|
|
|
195
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
196
|
|
|
|
|
(69
|
)
|
|
|
|
(209
|
)
|
|
|
|
(1
|
)
|
|
|
|
(70
|
)
|
|
|
|
(349
|
)
|
|
|
|
|
General and administrative
|
|
|
|
|
67
|
|
|
|
|
70
|
|
|
|
|
71
|
|
|
|
|
63
|
|
|
|
|
271
|
|
|
|
|
64
|
|
|
|
|
63
|
|
|
|
|
54
|
|
|
|
|
68
|
|
|
|
|
249
|
|
|
|
|
|
Acquisition costs
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
|
|
|
Other-net
|
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
3
|
|
|
|
|
6
|
|
|
|
|
12
|
|
|
|
|
26
|
|
|
|
|
5
|
|
|
|
|
7
|
|
|
|
|
29
|
|
|
|
|
67
|
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
|
|
852
|
|
|
|
|
925
|
|
|
|
|
645
|
|
|
|
|
745
|
|
|
|
|
3,167
|
|
|
|
|
505
|
|
|
|
|
290
|
|
|
|
|
566
|
|
|
|
|
2,827
|
|
|
|
|
4,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
42
|
|
|
|
|
(198
|
)
|
|
|
|
102
|
|
|
|
|
380
|
|
|
|
|
326
|
|
|
|
|
67
|
|
|
|
|
(6
|
)
|
|
|
|
(29
|
)
|
|
|
|
(2,332
|
)
|
|
|
|
(2,300
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
(29
|
)
|
|
|
|
(28
|
)
|
|
|
|
(31
|
)
|
|
|
|
(35
|
)
|
|
|
|
(123
|
)
|
|
|
|
(33
|
)
|
|
|
|
(32
|
)
|
|
|
|
(65
|
)
|
|
|
|
(57
|
)
|
|
|
|
(187
|
)
|
|
Loss on extinguishment of acquired debt
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(65
|
)
|
|
|
|
-
|
|
|
|
|
(65
|
)
|
|
Investment income and other
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
(5
|
)
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
|
|
$
|
13
|
|
|
|
$
|
(226
|
)
|
|
|
$
|
71
|
|
|
|
$
|
346
|
|
|
|
$
|
204
|
|
|
|
$
|
35
|
|
|
|
$
|
(37
|
)
|
|
|
$
|
(158
|
)
|
|
|
$
|
(2,394
|
)
|
|
|
$
|
(2,554
|
)
|
|
Provision (benefit) for income taxes
|
|
|
|
|
13
|
|
|
|
|
(82
|
)
|
|
|
|
25
|
|
|
|
|
119
|
|
|
|
|
75
|
|
|
|
|
13
|
|
|
|
|
(14
|
)
|
|
|
|
(52
|
)
|
|
|
|
(862
|
)
|
|
|
|
(915
|
)
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
-
|
|
|
|
$
|
(144
|
)
|
|
|
$
|
46
|
|
|
|
$
|
227
|
|
|
|
$
|
129
|
|
|
|
$
|
22
|
|
|
|
$
|
(23
|
)
|
|
|
$
|
(106
|
)
|
|
|
$
|
(1,532
|
)
|
|
|
$
|
(1,639
|
)
|
|
Income (loss) from discontinued operations
|
|
|
|
|
19
|
|
|
|
|
11
|
|
|
|
|
20
|
|
|
|
|
(8
|
)
|
|
|
|
42
|
|
|
|
|
46
|
|
|
|
|
(7
|
)
|
|
|
|
(124
|
)
|
|
|
|
(2
|
)
|
|
|
|
(87
|
)
|
|
Net income (loss)
|
|
|
|
$
|
19
|
|
|
|
$
|
(133
|
)
|
|
|
$
|
66
|
|
|
|
$
|
219
|
|
|
|
$
|
171
|
|
|
|
$
|
68
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(230
|
)
|
|
|
$
|
(1,534
|
)
|
|
|
$
|
(1,726
|
)
|
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
|
7
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
Net income (loss) attributable to WPX Energy, Inc.
|
|
|
|
$
|
18
|
|
|
|
$
|
(135
|
)
|
|
|
$
|
62
|
|
|
|
$
|
219
|
|
|
|
$
|
164
|
|
|
|
$
|
67
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(230
|
)
|
|
|
$
|
(1,534
|
)
|
|
|
$
|
(1,727
|
)
|
|
|
|
Less: Dividends on preferred stock
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
9
|
|
|
Net income (loss) attributable to WPX Energy, Inc. common
stockholders
|
|
|
|
$
|
18
|
|
|
|
$
|
(135
|
)
|
|
|
$
|
62
|
|
|
|
$
|
219
|
|
|
|
$
|
164
|
|
|
|
$
|
67
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(234
|
)
|
|
|
$
|
(1,539
|
)
|
|
|
$
|
(1,736
|
)
|
|
Amounts attributable to WPX Energy, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
-
|
|
|
|
$
|
(144
|
)
|
|
|
$
|
46
|
|
|
|
$
|
227
|
|
|
|
$
|
129
|
|
|
|
$
|
22
|
|
|
|
$
|
(23
|
)
|
|
|
$
|
(110
|
)
|
|
|
$
|
(1,537
|
)
|
|
|
$
|
(1,648
|
)
|
|
|
|
Income (loss) from discontinued operations
|
|
|
|
|
18
|
|
|
|
|
9
|
|
|
|
|
16
|
|
|
|
|
(8
|
)
|
|
|
|
35
|
|
|
|
|
45
|
|
|
|
|
(7
|
)
|
|
|
|
(124
|
)
|
|
|
|
(2
|
)
|
|
|
|
(88
|
)
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
18
|
|
|
|
$
|
(135
|
)
|
|
|
$
|
62
|
|
|
|
$
|
219
|
|
|
|
$
|
164
|
|
|
|
$
|
67
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(234
|
)
|
|
|
$
|
(1,539
|
)
|
|
|
$
|
(1,736
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Production Volumes (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
|
|
|
|
1,737
|
|
|
|
|
2,159
|
|
|
|
|
2,373
|
|
|
|
|
2,975
|
|
|
|
|
9,244
|
|
|
|
|
3,117
|
|
|
|
|
2,975
|
|
|
|
|
3,241
|
|
|
|
|
3,677
|
|
|
|
|
13,010
|
|
|
Natural gas (MMcf)
|
|
|
|
|
71,531
|
|
|
|
|
71,972
|
|
|
|
|
68,614
|
|
|
|
|
68,270
|
|
|
|
|
280,386
|
|
|
|
|
63,476
|
|
|
|
|
61,388
|
|
|
|
|
61,143
|
|
|
|
|
61,381
|
|
|
|
|
247,389
|
|
|
Natural gas liquids (MBbls)
|
|
|
|
|
1,587
|
|
|
|
|
1,625
|
|
|
|
|
1,574
|
|
|
|
|
1,464
|
|
|
|
|
6,250
|
|
|
|
|
1,518
|
|
|
|
|
1,791
|
|
|
|
|
1,958
|
|
|
|
|
2,022
|
|
|
|
|
7,289
|
|
|
Combined equivalent volumes (MBoe) (2)
|
|
|
|
|
15,246
|
|
|
|
|
15,780
|
|
|
|
|
15,383
|
|
|
|
|
15,817
|
|
|
|
|
62,225
|
|
|
|
|
15,215
|
|
|
|
|
14,998
|
|
|
|
|
15,389
|
|
|
|
|
15,929
|
|
|
|
|
61,530
|
|
|
Combined equivalent volumes (MMcfe) (3)
|
|
|
|
|
91,475
|
|
|
|
|
94,680
|
|
|
|
|
92,295
|
|
|
|
|
94,902
|
|
|
|
|
373,352
|
|
|
|
|
91,291
|
|
|
|
|
89,985
|
|
|
|
|
92,334
|
|
|
|
|
95,571
|
|
|
|
|
369,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
Excludes our Powder River Basin and international operations, which
were classified as discontinued operations.
|
|
(2
|
)
|
|
Mboe and MMcfe are converted using the ratio of one barrel of oil,
condensate or natural gas liquids to six thousand cubic feet of
natural gas.
|
|
(3
|
)
|
|
MMcfe is converted to MBoe using the ratio of one barrel to six
thousand cubic feet of natural gas.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized average price per unit (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per barrel)
|
|
|
|
$
|
86.24
|
|
|
|
$
|
89.24
|
|
|
|
$
|
84.11
|
|
|
|
$
|
61.14
|
|
|
|
$
|
78.32
|
|
|
|
$
|
37.64
|
|
|
|
$
|
48.60
|
|
|
|
$
|
38.11
|
|
|
|
$
|
35.10
|
|
|
|
$
|
39.55
|
|
|
|
|
Natural gas (per Mcf)
|
|
|
|
$
|
4.42
|
|
|
|
$
|
3.66
|
|
|
|
$
|
2.92
|
|
|
|
$
|
3.25
|
|
|
|
$
|
3.57
|
|
|
|
$
|
2.62
|
|
|
|
$
|
2.08
|
|
|
|
$
|
2.39
|
|
|
|
$
|
1.99
|
|
|
|
$
|
2.27
|
|
|
|
|
Natural gas liquids (per barrel)
|
|
|
|
$
|
38.27
|
|
|
|
$
|
33.58
|
|
|
|
$
|
33.64
|
|
|
|
$
|
25.04
|
|
|
|
$
|
32.79
|
|
|
|
$
|
15.40
|
|
|
|
$
|
13.76
|
|
|
|
$
|
12.40
|
|
|
|
$
|
11.92
|
|
|
|
$
|
13.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
Excludes our Powder River Basin and international operations, which
were classified as discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses per Boe (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease and facility operating
|
|
|
|
$
|
3.99
|
|
|
|
$
|
3.75
|
|
|
|
$
|
4.05
|
|
|
|
$
|
3.90
|
|
|
|
$
|
3.92
|
|
|
|
$
|
3.73
|
|
|
|
$
|
3.39
|
|
|
|
$
|
3.27
|
|
|
|
$
|
3.90
|
|
|
|
$
|
3.58
|
|
|
|
|
Gathering, processing and transportation
|
|
|
|
$
|
5.81
|
|
|
|
$
|
4.99
|
|
|
|
$
|
5.32
|
|
|
|
$
|
5.00
|
|
|
|
$
|
5.28
|
|
|
|
$
|
4.80
|
|
|
|
$
|
4.61
|
|
|
|
$
|
4.84
|
|
|
|
$
|
4.12
|
|
|
|
$
|
4.59
|
|
|
|
|
Taxes other than income
|
|
|
|
$
|
2.27
|
|
|
|
$
|
2.11
|
|
|
|
$
|
2.09
|
|
|
|
$
|
1.62
|
|
|
|
$
|
2.02
|
|
|
|
$
|
1.45
|
|
|
|
$
|
1.23
|
|
|
|
$
|
1.10
|
|
|
|
$
|
1.12
|
|
|
|
$
|
1.23
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
$
|
12.67
|
|
|
|
$
|
12.79
|
|
|
|
$
|
13.09
|
|
|
|
$
|
13.52
|
|
|
|
$
|
13.02
|
|
|
|
$
|
14.21
|
|
|
|
$
|
15.14
|
|
|
|
$
|
15.72
|
|
|
|
$
|
15.98
|
|
|
|
$
|
15.27
|
|
|
|
|
General and administrative
|
|
|
|
$
|
4.42
|
|
|
|
$
|
4.40
|
|
|
|
$
|
4.61
|
|
|
|
$
|
4.01
|
|
|
|
$
|
4.35
|
|
|
|
$
|
4.21
|
|
|
|
$
|
4.21
|
|
|
|
$
|
3.55
|
|
|
|
$
|
4.25
|
|
|
|
$
|
4.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
Excludes our Powder River Basin and international operations, which
were classified as discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPX Energy, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EPS and EBITDAX (NON-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2015
|
(Dollars in millions, except per share amounts)
|
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
Year
|
|
|
1st Qtr
|
|
|
2nd Qtr
|
|
|
3rd Qtr
|
|
|
4th Qtr
|
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations attributable to WPX
Energy, Inc. available to common stockholders
|
|
|
|
$
|
-
|
|
|
|
$
|
(144
|
)
|
|
|
$
|
46
|
|
|
|
$
|
227
|
|
|
|
$
|
129
|
|
|
|
$
|
22
|
|
|
|
$
|
(23
|
)
|
|
|
$
|
(110
|
)
|
|
|
$
|
(1,537
|
)
|
|
|
$
|
(1,648
|
)
|
|
Income (loss) from continuing operations - diluted earnings per
share
|
|
|
|
$
|
-
|
|
|
|
$
|
(0.71
|
)
|
|
|
$
|
0.23
|
|
|
|
$
|
1.10
|
|
|
|
$
|
0.62
|
|
|
|
$
|
0.11
|
|
|
|
$
|
(0.12
|
)
|
|
|
$
|
(0.44
|
)
|
|
|
$
|
(5.58
|
)
|
|
|
$
|
(7.04
|
)
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of producing properties and equity investment
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
20
|
|
|
|
$
|
20
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
2,311
|
|
|
|
$
|
2,311
|
|
|
Impairments- exploratory related
|
|
|
|
$
|
-
|
|
|
|
$
|
40
|
|
|
|
$
|
22
|
|
|
|
$
|
67
|
|
|
|
$
|
129
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
47
|
|
|
|
$
|
29
|
|
|
|
$
|
76
|
|
|
Net (gain) loss on sales of assets
|
|
|
|
$
|
-
|
|
|
|
$
|
195
|
|
|
|
$
|
1
|
|
|
|
$
|
-
|
|
|
|
$
|
196
|
|
|
|
$
|
(69
|
)
|
|
|
$
|
(209
|
)
|
|
|
$
|
(2
|
)
|
|
|
$
|
(70
|
)
|
|
|
$
|
(350
|
)
|
|
Expense related to Early Exit Program
|
|
|
|
$
|
-
|
|
|
|
$
|
2
|
|
|
|
$
|
8
|
|
|
|
$
|
-
|
|
|
|
$
|
10
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
Contract termination and early rig release expenses
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
6
|
|
|
|
$
|
6
|
|
|
|
$
|
12
|
|
|
|
$
|
26
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
5
|
|
|
|
$
|
31
|
|
|
Accrual for certain future gathering obligations associated with an
abandoned area
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
23
|
|
|
|
$
|
23
|
|
|
Assignment of natural gas storage commitment
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
14
|
|
|
|
$
|
14
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
Costs related to severance and relocation
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
8
|
|
|
|
$
|
7
|
|
|
|
$
|
1
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
15
|
|
|
Costs related to acquisition and retention
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
1
|
|
|
|
$
|
103
|
|
|
|
$
|
1
|
|
|
|
$
|
105
|
|
|
Unrealized MTM (gain) loss
|
|
|
|
$
|
27
|
|
|
|
$
|
-
|
|
|
|
$
|
(133
|
)
|
|
|
$
|
(453
|
)
|
|
|
$
|
(559
|
)
|
|
|
$
|
30
|
|
|
|
$
|
203
|
|
|
|
$
|
(50
|
)
|
|
|
$
|
16
|
|
|
|
$
|
199
|
|
|
Total pre-tax adjustments
|
|
|
|
$
|
27
|
|
|
|
$
|
237
|
|
|
|
$
|
(96
|
)
|
|
|
$
|
(346
|
)
|
|
|
$
|
(178
|
)
|
|
|
$
|
(5
|
)
|
|
|
$
|
2
|
|
|
|
$
|
99
|
|
|
|
$
|
2,314
|
|
|
|
$
|
2,410
|
|
|
Less tax effect for above items
|
|
|
|
$
|
(10
|
)
|
|
|
$
|
(87
|
)
|
|
|
$
|
35
|
|
|
|
$
|
126
|
|
|
|
$
|
64
|
|
|
|
$
|
2
|
|
|
|
$
|
(1
|
)
|
|
|
$
|
(35
|
)
|
|
|
$
|
(852
|
)
|
|
|
$
|
(886
|
)
|
|
Impact of state deferred tax rate change
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
8
|
|
|
|
$
|
8
|
|
|
Impact of new state tax law in New York (net of federal benefit)
|
|
|
|
$
|
9
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
9
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
Total adjustments, after-tax
|
|
|
|
$
|
26
|
|
|
|
$
|
150
|
|
|
|
$
|
(61
|
)
|
|
|
$
|
(220
|
)
|
|
|
$
|
(105
|
)
|
|
|
$
|
(3
|
)
|
|
|
$
|
1
|
|
|
|
$
|
64
|
|
|
|
$
|
1,470
|
|
|
|
$
|
1,532
|
|
|
Adjusted income (loss) from continuing operations available to
common stockholders
|
|
|
|
$
|
26
|
|
|
|
$
|
6
|
|
|
|
$
|
(15
|
)
|
|
|
$
|
7
|
|
|
|
$
|
24
|
|
|
|
$
|
19
|
|
|
|
$
|
(22
|
)
|
|
|
$
|
(46
|
)
|
|
|
$
|
(67
|
)
|
|
|
$
|
(116
|
)
|
|
Adjusted diluted earnings (loss) per common share
|
|
|
|
$
|
0.13
|
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
0.03
|
|
|
|
$
|
0.12
|
|
|
|
$
|
0.09
|
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.18
|
)
|
|
|
$
|
(0.24
|
)
|
|
|
$
|
(0.50
|
)
|
|
Diluted weighted-average shares (millions)
|
|
|
|
|
205.2
|
|
|
|
|
202.7
|
|
|
|
|
207.5
|
|
|
|
|
206.3
|
|
|
|
|
206.3
|
|
|
|
|
205.9
|
|
|
|
|
205.0
|
|
|
|
|
251.2
|
|
|
|
|
275.4
|
|
|
|
|
234.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to net income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
19
|
|
|
|
$
|
(133
|
)
|
|
|
$
|
66
|
|
|
|
$
|
219
|
|
|
|
$
|
171
|
|
|
|
$
|
68
|
|
|
|
$
|
(30
|
)
|
|
|
$
|
(230
|
)
|
|
|
$
|
(1,534
|
)
|
|
|
$
|
(1,726
|
)
|
|
Interest expense
|
|
|
|
|
29
|
|
|
|
|
28
|
|
|
|
|
31
|
|
|
|
|
35
|
|
|
|
|
123
|
|
|
|
|
33
|
|
|
|
|
32
|
|
|
|
|
65
|
|
|
|
|
57
|
|
|
|
|
187
|
|
|
Provision (benefit) for income taxes
|
|
|
|
|
13
|
|
|
|
|
(82
|
)
|
|
|
|
25
|
|
|
|
|
119
|
|
|
|
|
75
|
|
|
|
|
13
|
|
|
|
|
(14
|
)
|
|
|
|
(52
|
)
|
|
|
|
(862
|
)
|
|
|
|
(915
|
)
|
|
Depreciation, depletion and amortization
|
|
|
|
|
193
|
|
|
|
|
202
|
|
|
|
|
201
|
|
|
|
|
214
|
|
|
|
|
810
|
|
|
|
|
216
|
|
|
|
|
227
|
|
|
|
|
242
|
|
|
|
|
255
|
|
|
|
|
940
|
|
|
Exploration expenses
|
|
|
|
|
15
|
|
|
|
|
54
|
|
|
|
|
28
|
|
|
|
|
76
|
|
|
|
|
173
|
|
|
|
|
7
|
|
|
|
|
6
|
|
|
|
|
56
|
|
|
|
|
42
|
|
|
|
|
111
|
|
|
EBITDAX
|
|
|
|
|
269
|
|
|
|
|
69
|
|
|
|
|
351
|
|
|
|
|
663
|
|
|
|
|
1,352
|
|
|
|
|
337
|
|
|
|
|
221
|
|
|
|
|
81
|
|
|
|
|
(2,042
|
)
|
|
|
|
(1,403
|
)
|
|
Impairment of producing properties and equity investment
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,311
|
|
|
|
|
2,311
|
|
|
Accrual for certain future gathering obligations associated with an
abandoned area
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
23
|
|
|
|
|
23
|
|
|
Net (gain) loss on sales of assets
|
|
|
|
|
-
|
|
|
|
|
195
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
196
|
|
|
|
|
(69
|
)
|
|
|
|
(209
|
)
|
|
|
|
(2
|
)
|
|
|
|
(70
|
)
|
|
|
|
(350
|
)
|
|
RKI acquisition costs and loss on acquired debt retirement
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
87
|
|
|
|
|
-
|
|
|
|
|
87
|
|
|
Net (gain) loss on derivatives
|
|
|
|
|
195
|
|
|
|
|
17
|
|
|
|
|
(148
|
)
|
|
|
|
(498
|
)
|
|
|
|
(434
|
)
|
|
|
|
(105
|
)
|
|
|
|
71
|
|
|
|
|
(205
|
)
|
|
|
|
(179
|
)
|
|
|
|
(418
|
)
|
|
Net cash received (paid) related to settlement of derivatives
|
|
|
|
|
(168
|
)
|
|
|
|
(17
|
)
|
|
|
|
15
|
|
|
|
|
45
|
|
|
|
|
(125
|
)
|
|
|
|
135
|
|
|
|
|
132
|
|
|
|
|
155
|
|
|
|
|
195
|
|
|
|
|
617
|
|
|
(Income) loss from discontinued operations
|
|
|
|
|
(19
|
)
|
|
|
|
(11
|
)
|
|
|
|
(20
|
)
|
|
|
|
8
|
|
|
|
|
(42
|
)
|
|
|
|
(46
|
)
|
|
|
|
7
|
|
|
|
|
124
|
|
|
|
|
2
|
|
|
|
|
87
|
|
|
Adjusted EBITDAX
|
|
|
|
$
|
277
|
|
|
|
$
|
253
|
|
|
|
$
|
199
|
|
|
|
$
|
238
|
|
|
|
$
|
967
|
|
|
|
$
|
252
|
|
|
|
$
|
222
|
|
|
|
$
|
240
|
|
|
|
$
|
240
|
|
|
|
$
|
954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPX Energy, Inc.
|
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(Millions, except per share amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Product revenues:
|
|
|
|
|
|
|
|
|
|
|
Oil and condensate sales
|
|
|
|
$
|
514
|
|
|
|
$
|
724
|
|
|
|
$
|
534
|
|
Natural gas sales
|
|
|
|
|
563
|
|
|
|
|
1,002
|
|
|
|
|
896
|
|
Natural gas liquid sales
|
|
|
|
|
96
|
|
|
|
|
205
|
|
|
|
|
228
|
|
Total product revenues
|
|
|
|
|
1,173
|
|
|
|
|
1,931
|
|
|
|
|
1,658
|
|
Gas management
|
|
|
|
|
288
|
|
|
|
|
1,120
|
|
|
|
|
891
|
|
Net gain (loss) on derivatives not designated as hedges
|
|
|
|
|
418
|
|
|
|
|
434
|
|
|
|
|
(124
|
)
|
Other
|
|
|
|
|
9
|
|
|
|
|
8
|
|
|
|
|
6
|
|
Total revenues
|
|
|
|
|
1,888
|
|
|
|
|
3,493
|
|
|
|
|
2,431
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Lease and facility operating
|
|
|
|
|
220
|
|
|
|
|
244
|
|
|
|
|
227
|
|
Gathering, processing and transportation
|
|
|
|
|
282
|
|
|
|
|
328
|
|
|
|
|
350
|
|
Taxes other than income
|
|
|
|
|
75
|
|
|
|
|
126
|
|
|
|
|
102
|
|
Gas management, including charges for unutilized pipeline capacity
|
|
|
|
|
262
|
|
|
|
|
987
|
|
|
|
|
931
|
|
Exploration
|
|
|
|
|
111
|
|
|
|
|
173
|
|
|
|
|
423
|
|
Depreciation, depletion and amortization
|
|
|
|
|
940
|
|
|
|
|
810
|
|
|
|
|
858
|
|
Impairment of producing properties and costs of acquired unproved
reserves
|
|
|
|
|
2,308
|
|
|
|
|
20
|
|
|
|
|
860
|
|
Net gain (loss) on sales of assets
|
|
|
|
|
(349
|
)
|
|
|
|
196
|
|
|
|
|
-
|
|
General and administrative
|
|
|
|
|
249
|
|
|
|
|
271
|
|
|
|
|
269
|
|
Acquisition costs
|
|
|
|
|
23
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Other - net
|
|
|
|
|
67
|
|
|
|
|
12
|
|
|
|
|
12
|
|
Total costs and expenses
|
|
|
|
|
4,188
|
|
|
|
|
3,167
|
|
|
|
|
4,032
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
(2,300
|
)
|
|
|
|
326
|
|
|
|
|
(1,601
|
)
|
Interest expense
|
|
|
|
|
(187
|
)
|
|
|
|
(123
|
)
|
|
|
|
(108
|
)
|
Loss on extinguishment of acquired debt
|
|
|
|
|
(65
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Investment income, impairment of equity method investment and other
|
|
|
|
|
(2
|
)
|
|
|
|
1
|
|
|
|
|
(19
|
)
|
Income (loss) from continuing operations before income taxes
|
|
|
|
|
(2,554
|
)
|
|
|
|
204
|
|
|
|
|
(1,728
|
)
|
Provision (benefit) for income taxes
|
|
|
|
|
(915
|
)
|
|
|
|
75
|
|
|
|
|
(624
|
)
|
Income (loss) from continuing operations
|
|
|
|
|
(1,639
|
)
|
|
|
|
129
|
|
|
|
|
(1,104
|
)
|
Income (loss) from discontinued operations
|
|
|
|
|
(87
|
)
|
|
|
|
42
|
|
|
|
|
(87
|
)
|
Net income (loss)
|
|
|
|
|
(1,726
|
)
|
|
|
|
171
|
|
|
|
|
(1,191
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
|
1
|
|
|
|
|
7
|
|
|
|
|
(6
|
)
|
Net income (loss) attributable to WPX Energy, Inc.
|
|
|
|
$
|
(1,727
|
)
|
|
|
$
|
164
|
|
|
|
$
|
(1,185
|
)
|
Less: Dividends on preferred stock
|
|
|
|
|
9
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net income (loss) attributable to WPX Energy, Inc. common
stockholders
|
|
|
|
$
|
(1,736
|
)
|
|
|
$
|
164
|
|
|
|
$
|
(1,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to WPX Energy, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(1,648
|
)
|
|
|
$
|
129
|
|
|
|
$
|
(1,092
|
)
|
Income (loss) from discontinued operations
|
|
|
|
|
(88
|
)
|
|
|
|
35
|
|
|
|
|
(93
|
)
|
Net income (loss)
|
|
|
|
$
|
(1,736
|
)
|
|
|
$
|
164
|
|
|
|
$
|
(1,185
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(7.04
|
)
|
|
|
$
|
0.63
|
|
|
|
$
|
(5.45
|
)
|
Income (loss) from discontinued operations
|
|
|
|
|
(0.38
|
)
|
|
|
|
0.18
|
|
|
|
|
(0.46
|
)
|
Net income (loss)
|
|
|
|
$
|
(7.42
|
)
|
|
|
$
|
0.81
|
|
|
|
$
|
(5.91
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares
|
|
|
|
|
234.2
|
|
|
|
|
202.7
|
|
|
|
|
200.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
|
$
|
(7.04
|
)
|
|
|
$
|
0.62
|
|
|
|
$
|
(5.45
|
)
|
Income (loss) from discontinued operations
|
|
|
|
|
(0.38
|
)
|
|
|
|
0.18
|
|
|
|
|
(0.46
|
)
|
Net income (loss)
|
|
|
|
$
|
(7.42
|
)
|
|
|
$
|
0.80
|
|
|
|
$
|
(5.91
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average shares
|
|
|
|
|
234.2
|
|
|
|
|
206.3
|
|
|
|
|
200.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPX Energy, Inc.
|
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2015
|
|
|
2014
|
ASSETS
|
|
|
|
(Millions)
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
38
|
|
|
|
$
|
41
|
|
Accounts receivable, net of allowance of $6 million as of December
31, 2015 and December 31, 2014
|
|
|
|
|
312
|
|
|
|
|
459
|
|
Derivative assets
|
|
|
|
|
376
|
|
|
|
|
498
|
|
Inventories
|
|
|
|
|
59
|
|
|
|
|
45
|
|
Margin deposits
|
|
|
|
|
1
|
|
|
|
|
27
|
|
Assets classified as held for sale
|
|
|
|
|
40
|
|
|
|
|
773
|
|
Other
|
|
|
|
|
24
|
|
|
|
|
26
|
|
Total current assets
|
|
|
|
|
850
|
|
|
|
|
1,869
|
|
Properties and equipment, net
|
|
|
|
|
7,401
|
|
|
|
|
6,842
|
|
Derivative assets
|
|
|
|
|
65
|
|
|
|
|
38
|
|
Other noncurrent assets
|
|
|
|
|
34
|
|
|
|
|
29
|
|
Total assets
|
|
|
|
$
|
8,350
|
|
|
|
$
|
8,778
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
328
|
|
|
|
$
|
712
|
|
Accrued and other current liabilities
|
|
|
|
|
349
|
|
|
|
|
177
|
|
Liabilities associated with assets held for sale
|
|
|
|
|
-
|
|
|
|
|
132
|
|
Deferred income taxes
|
|
|
|
|
-
|
|
|
|
|
151
|
|
Derivative liabilities
|
|
|
|
|
13
|
|
|
|
|
37
|
|
Total current liabilities
|
|
|
|
|
690
|
|
|
|
|
1,209
|
|
Deferred income taxes
|
|
|
|
|
465
|
|
|
|
|
621
|
|
Long-term debt, net
|
|
|
|
|
3,189
|
|
|
|
|
2,260
|
|
Derivative liabilities
|
|
|
|
|
2
|
|
|
|
|
5
|
|
Asset retirement obligations
|
|
|
|
|
232
|
|
|
|
|
198
|
|
Other noncurrent liabilities
|
|
|
|
|
237
|
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
Preferred stock (100 million shares authorized at $0.01 par value; 7
million shares issued at December 31, 2015)
|
|
|
|
|
339
|
|
|
|
|
-
|
|
Common stock (2 billion shares authorized at $0.01 par value; 275.4
million shares issued at December 31, 2015 and 203.7 million shares
issued at December 31, 2014)
|
|
|
|
|
3
|
|
|
|
|
2
|
|
Additional paid-in-capital
|
|
|
|
|
6,164
|
|
|
|
|
5,562
|
|
Accumulated deficit
|
|
|
|
|
(2,971
|
)
|
|
|
|
(1,244
|
)
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
Total stockholders' equity
|
|
|
|
|
3,535
|
|
|
|
|
4,319
|
|
Noncontrolling interests in consolidated subsidiaries
|
|
|
|
|
-
|
|
|
|
|
109
|
|
Total equity
|
|
|
|
|
3,535
|
|
|
|
|
4,428
|
|
Total liabilities and equity
|
|
|
|
$
|
8,350
|
|
|
|
$
|
8,778
|
|
|
WPX Energy, Inc.
|
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
|
|
(Millions)
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
(1,726
|
)
|
|
|
$
|
171
|
|
|
|
$
|
(1,191
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities(a):
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
940
|
|
|
|
|
863
|
|
|
|
|
940
|
|
Deferred income tax provision (benefit)
|
|
|
|
|
(1,005
|
)
|
|
|
|
46
|
|
|
|
|
(645
|
)
|
Provision for impairment of properties and equipment (including
certain exploration expenses) and investments
|
|
|
|
|
2,426
|
|
|
|
|
236
|
|
|
|
|
1,483
|
|
Amortization of stock-based awards
|
|
|
|
|
35
|
|
|
|
|
36
|
|
|
|
|
32
|
|
Loss on extinguishment of acquired debt and acquisition bridge
financing fees
|
|
|
|
|
81
|
|
|
|
|
-
|
|
|
|
|
-
|
|
(Gain) loss on sales of domestic assets and international interests
|
|
|
|
|
(385
|
)
|
|
|
|
196
|
|
|
|
|
(41
|
)
|
Cash provided (used) by operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
233
|
|
|
|
|
51
|
|
|
|
|
(43
|
)
|
Inventories
|
|
|
|
|
(2
|
)
|
|
|
|
19
|
|
|
|
|
(5
|
)
|
Margin deposits and customer margin deposits payable
|
|
|
|
|
26
|
|
|
|
|
(10
|
)
|
|
|
|
(18
|
)
|
Other current assets
|
|
|
|
|
-
|
|
|
|
|
8
|
|
|
|
|
(7
|
)
|
Accounts payable
|
|
|
|
|
(247
|
)
|
|
|
|
4
|
|
|
|
|
41
|
|
Accrued and other current liabilities
|
|
|
|
|
79
|
|
|
|
|
(1
|
)
|
|
|
|
(21
|
)
|
Changes in current and noncurrent derivative assets and liabilities
|
|
|
|
|
199
|
|
|
|
|
(559
|
)
|
|
|
|
106
|
|
Other, including changes in other noncurrent assets and liabilities
|
|
|
|
|
157
|
|
|
|
|
10
|
|
|
|
|
5
|
|
Net cash provided by operating activities
|
|
|
|
|
811
|
|
|
|
|
1,070
|
|
|
|
|
636
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures(b)
|
|
|
|
|
(1,124
|
)
|
|
|
|
(1,807
|
)
|
|
|
|
(1,154
|
)
|
Proceeds from sales of domestic assets and international interests
|
|
|
|
|
1,019
|
|
|
|
|
374
|
|
|
|
|
49
|
|
Purchase of business, net of cash acquired
|
|
|
|
|
(1,212
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Other
|
|
|
|
|
1
|
|
|
|
|
(4
|
)
|
|
|
|
(6
|
)
|
Net cash used in investing activities
|
|
|
|
|
(1,316
|
)
|
|
|
|
(1,437
|
)
|
|
|
|
(1,111
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Proceeds from common stock
|
|
|
|
|
295
|
|
|
|
|
16
|
|
|
|
|
6
|
|
Proceeds from preferred stock
|
|
|
|
|
339
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Dividends paid on preferred stock
|
|
|
|
|
(6
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Proceeds from long-term debt
|
|
|
|
|
1,000
|
|
|
|
|
500
|
|
|
|
|
-
|
|
Payments for retirement of long-term debt
|
|
|
|
|
(45
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Payments for retirement of acquired debt
|
|
|
|
|
(1,055
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Borrowings on credit facility
|
|
|
|
|
841
|
|
|
|
|
1,947
|
|
|
|
|
970
|
|
Payments on credit facility
|
|
|
|
|
(856
|
)
|
|
|
|
(2,077
|
)
|
|
|
|
(560
|
)
|
Payments for debt issuance costs and acquisition bridge financing
fees
|
|
|
|
|
(40
|
)
|
|
|
|
(13
|
)
|
|
|
|
-
|
|
Other
|
|
|
|
|
-
|
|
|
|
|
(29
|
)
|
|
|
|
10
|
|
Net cash provided by financing activities
|
|
|
|
|
473
|
|
|
|
|
344
|
|
|
|
|
426
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
(32
|
)
|
|
|
|
(23
|
)
|
|
|
|
(49
|
)
|
Effect of exchange rate changes on international cash and cash
equivalents
|
|
|
|
|
-
|
|
|
|
|
(6
|
)
|
|
|
|
(5
|
)
|
Cash and cash equivalents at beginning of period(c)
|
|
|
|
|
70
|
|
|
|
|
99
|
|
|
|
|
153
|
|
Cash and cash equivalents at end of period(c)
|
|
|
|
$
|
38
|
|
|
|
$
|
70
|
|
|
|
$
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes amounts related to discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Increase to properties and equipment
|
|
|
|
$
|
(865
|
)
|
|
|
$
|
(1,934
|
)
|
|
|
$
|
(1,207
|
)
|
Changes in related accounts payable and accounts receivable
|
|
|
|
|
(259
|
)
|
|
|
|
127
|
|
|
|
|
53
|
|
Capital expenditures
|
|
|
|
$
|
(1,124
|
)
|
|
|
$
|
(1,807
|
)
|
|
|
$
|
(1,154
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(c) For periods prior to sale, amounts include cash associated with
our international operations and represents the difference between
amounts reported as cash on the Consolidated Balance Sheets.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160224006574/en/
Copyright Business Wire 2016