Record oil output of 58,600 barrels per day
-
2Q oil output grew 27% vs. 1Q 2017
-
Raising 2017 outlook for oil growth from 30% to 40%
-
Delaware resource assessment continues to show strong results
-
Signed Delaware crude transport deal with Oryx; includes equity
interest
-
Permian midstream JV agreement creating new platform for value
creation
-
6-well Etstatis pad in Williston Basin boasts 30-day cumulative oil
of ~258,000 barrels
-
Begins process to market San Juan Basin legacy natural gas position
WPX Energy’s (NYSE:WPX) second-quarter 2017 results mark an all-time
high for the company’s liquids production and reflect unaudited net
income attributable to common shareholders of $72 million, or income of
$0.18 per share on a diluted basis.
Total liquids production (oil and NGL) surpassed 70,000 barrels per day
for the first time in a quarter, averaging 72,400 barrels per day in
second-quarter 2017. This was 17 percent higher than WPX’s prior best
for liquids production (62,000 barrels per day in fourth-quarter 2015)
when its portfolio included Piceance Basin operations that have since
been divested.
Liquids growth was driven by WPX’s third consecutive quarterly high for
oil output. Second-quarter 2017 oil production of 58,600 barrels per day
was 27 percent higher than the most recent quarter and up 43 percent vs.
the same period a year ago.
All three of WPX’s operating areas posted double-digit oil growth vs.
the most recent quarter, led by a 49 percent increase in the Delaware
Basin following a full-quarter benefit from volumes associated with the
Panther acquisition in March.
“Since my first quarterly webcast at WPX three years ago, we’ve
undertaken more than $7 billion of transactions, transformed the
company’s portfolio and doubled our oil production,” said Rick Muncrief,
chairman, president and chief executive officer.
“Without question, we’re reaping attractive results from our long-term
strategy. Most importantly, we remain intensely focused on reaching our
deleveraging goals by year-end 2018,” Muncrief added.
WELL PERFORMANCE
WPX believes that data from its spacing test on its CBR-22 pad in the
Delaware Basin validates 330-foot wine-racked spacing for Wolfcamp A
laterals in the Stateline area at current market pricing. Interference
tests thus far continue to show only minimal downhole pressure
communication between wells.
Initial flowback on nine wells started at the end of the first quarter
when WPX completed these wells in the upper and lower Wolfcamp A landing
zones, testing 15 wells per section. All nine wells in the spacing test
are still free-flowing, with 90-day average cumulative production of
106,000 Boe per well (51% oil).
Also in the Delaware, WPX’s easternmost Wolfcamp A well to date – the
Blue 34-1H well – had 30-day production averaging 1,560 Boe/d (69% oil).
A Second Bone Spring Sand well had 30-day production averaging 1,215
Boe/d (56% oil). A Third Bone Spring well had 30-day production
averaging 1,647 Boe/d (50% oil). In the Wolfcamp D interval, the East
Pecos 22-9H had 30-day production averaging 2,051 Boe/d (31% oil).
In the Williston Basin, six wells on the Etstatis pad posted a 24-hour
peak IP average of 2,809 Boe/d (81% oil) and 30-day cumulative
production averaging 53,303 Boe per well. The highest IP occurred on the
Etstatis 32-29HA well which posted a 24-hour high of 3,532 Boe/d. The
same well had cumulative 30-day production of 64,779 Boe.
Results were comparably strong on the two-well Wolf Chief pad in the
Williston, which posted a 24-hour peak IP average of 2,743 Boe/d per
well (81% oil) and 30-day cumulative production averaging 56,181 Boe per
well.
“I’m very pleased with the strong execution from our Bakken team,”
Muncrief said. “We’ve continued to challenge the status quo and
delivered some outstanding results, including a 51 percent jump in our
Bakken oil production since second-quarter 2016.”
RECENT EVENTS
As previously announced, during the second quarter WPX signed an
agreement with Howard Energy Partners to jointly develop oil gathering
and natural gas processing infrastructure in the Stateline area of the
Delaware Basin. Upon closing, WPX is slated to receive $300 million
upfront representing its strategic partner’s contribution per the terms
of the JV agreement, along with a $132 million capital carry.
Subsequent to the close of the second quarter, WPX signed a long-term
agreement with Oryx Midstream Services which provides WPX with 100,000
barrels per day of firm crude oil capacity from the Stateline area to
Midland and Crane and a minority equity position in the related pipeline
project.
The project is expected to be in service during the latter half of 2018
and will initially provide approximately 400,000 barrels per day of
capacity.
WPX also has initiated a process to market its legacy natural gas
position in the northern end of the San Juan Basin comprising both its
operated and non-operated properties. WPX’s oil operations in the San
Juan Basin’s Gallup oil play are not included in the sales process. If
the marketing effort is successful, WPX would work to complete a
transaction by year-end.
2Q FINANCIAL RESULTS
Oil and NGL sales of $249 million accounted for 86 percent of WPX’s
second-quarter 2017 total product revenues of $289 million. Quarterly
oil sales grew by 59 percent vs. the same period a year ago driven by
higher production volumes and higher average prices.
Total product revenues of $542 million during the first half of 2017
were 79 percent higher than $303 million in the first half of 2016. Oil
revenues of $414 million during the first half of 2017 were 73 percent
higher than the same period a year ago.
WPX’s second-quarter 2017 net income of $72 million included $116
million of net gains associated with its hedge book. For the first half
of the year, WPX posted net income of $160 million, compared with a net
loss of $221 million in the first half of 2016.
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 $57 million, or a loss of
$0.14 per share. Adjusted EBITDAX (a non-GAAP financial measure) for the
second quarter was $152 million. Reconciliations for non-GAAP financial
measures are available in the tables that accompany this press release.
For the first half of 2017, the adjusted net loss from continuing
operations was $117 million, or a loss of $0.30 per share. For the first
half of 2017, adjusted EBITDAX was $267 million, or 19 percent higher
than $225 million in the first half of 2016. The improvement in adjusted
EBITDAX is driven by higher production volumes and higher prices,
partially offset by lower realizations on derivatives.
The weighted average gross sales price – prior to revenue deductions –
was $43.60 per barrel for oil, $2.65 for natural gas and $18.98 per
barrel for NGL during second-quarter 2017.
WPX’s total liquidity at the close of business on June 30, 2017, was
approximately $1.1 billion, including its available revolver capacity.
Cash flow from operations in the second quarter was $120 million.
Capital expenditures of $596 million during the first half of 2017
include $32 million for Delaware infrastructure, $63 million for land
purchases and $8 million for other items not associated with D&C
activity. The Delaware infrastructure expenses are reimbursable to WPX
under the terms of its midstream JV agreement.
2Q PRODUCTION AND HEDGING UPDATE
Total company production volumes of 106.2 Mboe/d in second-quarter 2017
were up 18 percent vs. first-quarter 2017 and 25 percent higher than the
same period a year ago. Liquids volumes accounted for 68 percent of
second-quarter 2017 production.
Second-quarter 2017 natural gas volumes reflect the impact of divesting
non-core operations in the Marcellus Shale and the Green River Basin.
The absence of these volumes impacted second-quarter gas production by
13 MMcf/d.
WPX completed 39 gross operated wells (36.83 net) in its three basins
during second-quarter 2017 and participated in another six gross (1.06
net) non-operated wells in the Delaware Basin.
|
|
|
|
|
|
Average Daily Production
|
|
2Q
|
|
|
1Q Sequential
|
|
|
2017
|
|
2016
|
|
Change
|
|
|
2017
|
|
Change
|
Oil (Mbbl/d)
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
20.2
|
|
13.8
|
|
46
|
%
|
|
|
13.6
|
|
49
|
%
|
Williston Basin
|
|
30.1
|
|
20
|
|
51
|
%
|
|
|
25.3
|
|
19
|
%
|
San Juan Basin
|
|
8.3
|
|
7
|
|
20
|
%
|
|
|
7.2
|
|
15
|
%
|
Subtotal (Mbbl/d)
|
|
58.6
|
|
40.9
|
|
43
|
%
|
|
|
46.1
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (Mbbl/d)
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
8
|
|
4.1
|
|
95
|
%
|
|
|
5.7
|
|
40
|
%
|
Williston Basin
|
|
2.5
|
|
2.1
|
|
19
|
%
|
|
|
2.1
|
|
19
|
%
|
San Juan Basin
|
|
3.2
|
|
3.7
|
|
-14
|
%
|
|
|
3.4
|
|
-6
|
%
|
Other
|
|
0.1
|
|
0.1
|
|
0
|
%
|
|
|
0.1
|
|
0
|
%
|
Subtotal (Mbbl/d)
|
|
13.8
|
|
10
|
|
38
|
%
|
|
|
11.3
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (MMcf/d)
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
75
|
|
49
|
|
53
|
%
|
|
|
58
|
|
29
|
%
|
Williston Basin
|
|
14
|
|
12
|
|
17
|
%
|
|
|
12
|
|
17
|
%
|
San Juan Basin
|
|
111
|
|
127
|
|
-13
|
%
|
|
|
110
|
|
1
|
%
|
Other
|
|
3
|
|
18
|
|
-83
|
%
|
|
|
16
|
|
-81
|
%
|
Subtotal (MMcf/d)
|
|
203
|
|
206
|
|
-1
|
%
|
|
|
196
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production (Mboe/d)
|
|
106.2
|
|
85.2
|
|
25
|
%
|
|
|
90
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
For the remainder of 2017, WPX now has 50,750 barrels per day of oil
hedged at a weighted average price of $50.26 per barrel. As previously
disclosed, WPX also has 170,000 MMBtu per day of natural gas hedged at a
weighted average price of $3.02 per MMBtu.
For 2018, WPX now has 55,500 barrels per day of oil hedged at a weighted
average price of $52.69 per barrel. As previously disclosed, WPX also
has 185,000 MMBtu per day of natural gas hedged at a weighted average
price of $2.98 per MMBtu.
WPX has extended its hedging program into 2019. For 2019, WPX has 17,000
barrels per day of oil hedged at a weighted average price of $50.95 per
barrel.
DELAWARE BASIN SUMMARY
WPX operates in the core of the Permian’s world-class Delaware Basin
where the company has more than 6,400 gross drillable locations. WPX has
seven rigs in the basin.
WPX’s total Delaware production averaged 40.7 Mboe/d in the second
quarter, up 41 percent vs. first-quarter 2017 and 56 percent vs. a year
ago. Second-quarter Delaware oil production jumped 49 percent vs. the
most recent quarter.
Notably, second-quarter 2017 marked the first time for WPX’s Delaware
Basin operations to post the highest production among WPX’s three
operating areas. WPX entered the play in the second half of 2015.
WPX brought 16 wells to first sales in the basin during the second
quarter, including nine Wolfcamp A laterals, three Wolfcamp D laterals,
and the previously mentioned laterals in the Second Bone Springs Sand
and the Third Bone Springs.
Additionally, WPX has installed 30 miles of the planned 50-mile crude
oil gathering system in the basin. The trunkline is designed to have a
capacity of approximately 125,000 barrels of oil per day. The system
will be part of the 50/50 midstream joint venture with Howard Energy
Partners.
WILLISTON BASIN SUMMARY
WPX’s Williston Basin production comes from the Bakken and Three Forks
formations. Approximately 85 percent of the production stream is oil.
WPX has two rigs deployed in the basin.
Williston Basin production averaged 34.9 Mboe/d in the second quarter,
up 19 percent vs. 29.4 Mboe/d in first-quarter 2017 and 45 percent above
results from a year ago. Second-quarter 2017 oil production in the basin
was 51 percent higher vs. a year ago.
The company completed 14 wells in the second quarter, including six
Bakken wells and eight Three Forks wells. All of WPX’s second-quarter
2017 completions in the Williston were two-mile laterals, averaging
9,875 feet per lateral.
The 24-hour peak IP for the 14 wells averaged 2,516 Boe/d (81% oil).
Eleven of the 14 wells had 30-day cumulative production at the time of
this announcement, which were averaging 49,095 Boe per well.
Recent well results in the basin reflect a favorable impact from
completions trials to test the number of frac stages, tighter cluster
spacing and increased proppant intensity.
SAN JUAN BASIN SUMMARY
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. WPX has one rig deployed in the basin.
San Juan Basin production averaged 30.1 Mboe/d in the second quarter, up
5 percent vs. 28.8 Mboe/d in first-quarter 2017. Oil production
increased 15 percent vs. first-quarter 2017.
WPX has completed 11 Gallup oil wells so far this year, including nine
in the second quarter. This included four 1-mile laterals and seven
1.5-mile laterals. The 24-hour peak IP for the 11 wells averaged 1,336
Boe/d (70% oil), with 30-day cumulative production averaging 23,775 Boe
per well.
The highest IP occurred on the 714H well with a 1.5-mile lateral in the
West Lybrook unit, which posted a 24-hour high of 1,712 Boe/d (65% oil).
The highest 30-day average also occurred on the 714H well, which had
cumulative production of 39,904 Boe.
WPX has a 12-month permit inventory in the San Juan Basin and already
has completed the vast majority of its pad and facilities construction
for its planned development through early 2018.
UPDATED 2017 GUIDANCE
WPX is raising its full-year oil production guidance for 2017 to an
average of 57 to 60 Mbbl per day, up 8 percent from previous guidance of
52 to 56 Mbbl per day. Guidance for total equivalent production in 2017
is now 105 to 116 Mboe per day, up from 103 to 113 Mboe per day.
Projections for natural gas production were adjusted following the
divestiture of WPX’s remaining properties in the Marcellus Shale and its
non-operated interests in the Green River Basin during the first half of
the year.
Full-year 2017 capital spending is now estimated at $990 million to
$1,070 million, up from $905 million to $985 million. Incremental
capital for the Delaware Basin addresses the development of higher
working interest wells, greater participation in non-operated wells,
inflationary pressure for oilfield services and additional funding for
infrastructure.
Further details and information about WPX’s updated 2017 guidance are
available in the second-quarter slide presentation at www.wpxenergy.com.
JOIN THURSDAY’S WEBCAST
The company’s next webcast takes place on Aug. 3 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 33280314.
UPCOMING CONFERENCE PRESENTATIONS
WPX Chief Operating Officer Clay Gaspar is scheduled to speak at the
Enercom Oil and Gas Conference on Tuesday, Aug. 15, at 10 a.m. Eastern.
WPX CEO Rick Muncrief is scheduled to present at Barclays Capital CEO
Energy-Power Conference on Wednesday, 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 2017 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 has posted double-digit oil volume growth each of the past five
years. The company is active in the Delaware, Williston and San Juan
basins. The Delaware Basin is the western portion of the greater Permian
Basin.
This press release includes “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that the
company expects, believes or anticipates will or may occur in the future
are forward-looking statements. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the company. Statements regarding future drilling
and production are subject to all of the risks and uncertainties
normally incident to the exploration for and development and production
of oil and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks;
environmental risks; and political or regulatory changes. Investors
are cautioned that any such statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected in the forward-looking statements. The
forward-looking statements in this press release are made as of the date
of this press release, even if subsequently made available by WPX Energy
on its website or otherwise. WPX Energy does not undertake and
expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our
filings with the Securities and Exchange Commission, available from us
at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa,
Okla., 74102, or from the SEC’s website at www.sec.gov.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPX Energy, Inc.
|
Consolidated (GAAP)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2017
|
|
(Dollars in millions)
|
|
1st Qtr
|
|
2nd Qtr
|
|
3rd Qtr
|
|
4th Qtr
|
|
YTD
|
|
|
1st Qtr
|
|
2nd Qtr
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil sales
|
|
$
|
97
|
|
|
$
|
142
|
|
|
$
|
139
|
|
|
$
|
173
|
|
|
$
|
551
|
|
|
|
$
|
188
|
|
|
$
|
226
|
|
|
$
|
414
|
|
|
|
|
|
Natural gas sales
|
|
|
25
|
|
|
|
24
|
|
|
|
37
|
|
|
|
39
|
|
|
|
125
|
|
|
|
|
44
|
|
|
|
40
|
|
|
|
84
|
|
|
|
|
|
Natural gas liquid sales
|
|
|
5
|
|
|
|
10
|
|
|
|
12
|
|
|
|
19
|
|
|
|
46
|
|
|
|
|
21
|
|
|
|
23
|
|
|
|
44
|
|
|
|
|
|
|
Total product revenues
|
|
|
127
|
|
|
|
176
|
|
|
|
188
|
|
|
|
231
|
|
|
|
722
|
|
|
|
|
253
|
|
|
|
289
|
|
|
|
542
|
|
|
|
|
Net gain (loss) on derivatives
|
|
|
57
|
|
|
|
(154
|
)
|
|
|
38
|
|
|
|
(148
|
)
|
|
|
(207
|
)
|
|
|
|
203
|
|
|
|
116
|
|
|
|
319
|
|
|
|
|
Gas management
|
|
|
31
|
|
|
|
116
|
|
|
|
25
|
|
|
|
5
|
|
|
|
177
|
|
|
|
|
5
|
|
|
|
8
|
|
|
|
13
|
|
|
|
|
Other
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
Total revenues
|
|
|
216
|
|
|
|
138
|
|
|
|
251
|
|
|
|
88
|
|
|
|
693
|
|
|
|
|
461
|
|
|
|
413
|
|
|
|
874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
152
|
|
|
|
163
|
|
|
|
150
|
|
|
|
158
|
|
|
|
623
|
|
|
|
|
147
|
|
|
|
171
|
|
|
|
318
|
|
|
|
|
Lease and facility operating
|
|
|
42
|
|
|
|
41
|
|
|
|
40
|
|
|
|
40
|
|
|
|
163
|
|
|
|
|
48
|
|
|
|
53
|
|
|
|
101
|
|
|
|
|
Gathering, processing and transportation
|
|
|
16
|
|
|
|
20
|
|
|
|
19
|
|
|
|
21
|
|
|
|
76
|
|
|
|
|
21
|
|
|
|
21
|
|
|
|
42
|
|
|
|
|
Taxes other than income
|
|
|
11
|
|
|
|
16
|
|
|
|
14
|
|
|
|
19
|
|
|
|
60
|
|
|
|
|
19
|
|
|
|
23
|
|
|
|
42
|
|
|
|
|
Exploration
|
|
|
9
|
|
|
|
12
|
|
|
|
10
|
|
|
|
11
|
|
|
|
42
|
|
|
|
|
39
|
|
|
|
21
|
|
|
|
60
|
|
|
|
|
General and administrative
|
|
|
53
|
|
|
|
55
|
|
|
|
51
|
|
|
|
55
|
|
|
|
214
|
|
|
|
|
43
|
|
|
|
46
|
|
|
|
89
|
|
|
|
|
Gas management
|
|
|
39
|
|
|
|
132
|
|
|
|
31
|
|
|
|
6
|
|
|
|
208
|
|
|
|
|
5
|
|
|
|
8
|
|
|
|
13
|
|
|
|
|
Net (gain) loss on sales of assets and divestment of transportation
contracts
|
|
|
(198
|
)
|
|
|
(4
|
)
|
|
|
227
|
|
|
|
(3
|
)
|
|
|
22
|
|
|
|
|
(35
|
)
|
|
|
(7
|
)
|
|
|
(42
|
)
|
|
|
|
Other-net
|
|
|
2
|
|
|
|
2
|
|
|
|
10
|
|
|
|
2
|
|
|
|
16
|
|
|
|
|
4
|
|
|
|
8
|
|
|
|
12
|
|
|
|
|
|
|
Total costs and expenses
|
|
|
126
|
|
|
|
437
|
|
|
|
552
|
|
|
|
309
|
|
|
|
1,424
|
|
|
|
|
291
|
|
|
|
344
|
|
|
|
635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
90
|
|
|
|
(299
|
)
|
|
|
(301
|
)
|
|
|
(221
|
)
|
|
|
(731
|
)
|
|
|
|
170
|
|
|
|
69
|
|
|
|
239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(57
|
)
|
|
|
(53
|
)
|
|
|
(49
|
)
|
|
|
(48
|
)
|
|
|
(207
|
)
|
|
|
|
(47
|
)
|
|
|
(46
|
)
|
|
|
(93
|
)
|
|
Investment income and other
|
|
|
2
|
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before income taxes
|
|
$
|
35
|
|
|
$
|
(353
|
)
|
|
$
|
(350
|
)
|
|
$
|
(269
|
)
|
|
$
|
(937
|
)
|
|
|
$
|
125
|
|
|
$
|
23
|
|
|
$
|
148
|
|
|
Provision (benefit) for income taxes
|
|
|
35
|
|
|
|
(130
|
)
|
|
|
(132
|
)
|
|
|
(98
|
)
|
|
|
(325
|
)
|
|
|
|
31
|
|
|
|
(53
|
)
|
|
|
(22
|
)
|
|
Income (loss) from continuing operations
|
|
$
|
-
|
|
|
$
|
(223
|
)
|
|
$
|
(218
|
)
|
|
$
|
(171
|
)
|
|
$
|
(612
|
)
|
|
|
$
|
94
|
|
|
$
|
76
|
|
|
$
|
170
|
|
|
Income (loss) from discontinued operations
|
|
|
(12
|
)
|
|
|
25
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
11
|
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
|
Net income (loss)
|
|
$
|
(12
|
)
|
|
$
|
(198
|
)
|
|
$
|
(219
|
)
|
|
$
|
(172
|
)
|
|
$
|
(601
|
)
|
|
|
$
|
92
|
|
|
$
|
76
|
|
|
$
|
168
|
|
|
|
Less: Dividends on preferred stock
|
|
|
5
|
|
|
|
6
|
|
|
|
4
|
|
|
|
3
|
|
|
|
18
|
|
|
|
|
4
|
|
|
|
4
|
|
|
|
8
|
|
|
|
Less: Loss on induced conversion of preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
22
|
|
|
|
-
|
|
|
|
22
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net income (loss) available to WPX Energy, Inc. common
stockholders
|
|
$
|
(17
|
)
|
|
$
|
(204
|
)
|
|
$
|
(245
|
)
|
|
$
|
(175
|
)
|
|
$
|
(641
|
)
|
|
|
$
|
88
|
|
|
$
|
72
|
|
|
$
|
160
|
|
|
Amounts available to WPX Energy, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
(5
|
)
|
|
$
|
(229
|
)
|
|
$
|
(244
|
)
|
|
$
|
(174
|
)
|
|
$
|
(652
|
)
|
|
|
$
|
90
|
|
|
$
|
72
|
|
|
$
|
162
|
|
|
|
Income (loss) from discontinued operations
|
|
|
(12
|
)
|
|
|
25
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
11
|
|
|
|
|
(2
|
)
|
|
|
-
|
|
|
|
(2
|
)
|
|
|
|
|
Net income (loss)
|
|
$
|
(17
|
)
|
|
$
|
(204
|
)
|
|
$
|
(245
|
)
|
|
$
|
(175
|
)
|
|
$
|
(641
|
)
|
|
|
$
|
88
|
|
|
$
|
72
|
|
|
$
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Production Volumes (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
|
|
3,774
|
|
|
|
3,719
|
|
|
|
3,576
|
|
|
|
4,108
|
|
|
|
15,178
|
|
|
|
|
4,149
|
|
|
|
5,331
|
|
|
|
9,479
|
|
|
Natural gas (MMcf)
|
|
|
16,820
|
|
|
|
18,764
|
|
|
|
18,845
|
|
|
|
18,414
|
|
|
|
72,842
|
|
|
|
|
17,605
|
|
|
|
18,475
|
|
|
|
36,080
|
|
|
Natural gas liquids (MBbls)
|
|
|
708
|
|
|
|
909
|
|
|
|
1,047
|
|
|
|
981
|
|
|
|
3,645
|
|
|
|
|
1,015
|
|
|
|
1,252
|
|
|
|
2,267
|
|
|
Combined equivalent volumes (MBoe) (2)
|
|
|
7,285
|
|
|
|
7,755
|
|
|
|
7,764
|
|
|
|
8,159
|
|
|
|
30,963
|
|
|
|
|
8,098
|
|
|
|
9,662
|
|
|
|
17,759
|
|
|
Per day volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls/d)
|
|
|
41.5
|
|
|
|
40.9
|
|
|
|
38.9
|
|
|
|
44.7
|
|
|
|
41.5
|
|
|
|
|
46.1
|
|
|
|
58.6
|
|
|
|
52.4
|
|
|
Natural gas (MMcf/d)
|
|
|
185
|
|
|
|
206
|
|
|
|
205
|
|
|
|
200
|
|
|
|
199
|
|
|
|
|
196
|
|
|
|
203
|
|
|
|
199
|
|
|
Natural gas liquids (MBbls/d)
|
|
|
7.8
|
|
|
|
10.0
|
|
|
|
11.4
|
|
|
|
10.7
|
|
|
|
10.0
|
|
|
|
|
11.3
|
|
|
|
13.8
|
|
|
|
12.5
|
|
|
Combined equivalent volumes (Mboe/d) (2)
|
|
|
80.1
|
|
|
|
85.2
|
|
|
|
84.4
|
|
|
|
88.7
|
|
|
|
84.6
|
|
|
|
|
90.0
|
|
|
|
106.2
|
|
|
|
98.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
Excludes activity 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)
|
|
$
|
25.62
|
|
|
$
|
38.38
|
|
|
$
|
38.71
|
|
|
$
|
42.18
|
|
|
$
|
36.31
|
|
|
|
$
|
45.31
|
|
|
$
|
42.46
|
|
|
$
|
43.70
|
|
|
|
Natural gas (per Mcf)
|
|
$
|
1.52
|
|
|
$
|
1.23
|
|
|
$
|
1.97
|
|
|
$
|
2.13
|
|
|
$
|
1.72
|
|
|
|
$
|
2.51
|
|
|
$
|
2.13
|
|
|
$
|
2.32
|
|
|
|
Natural gas liquids (per barrel)
|
|
$
|
7.14
|
|
|
$
|
11.21
|
|
|
$
|
11.50
|
|
|
$
|
18.54
|
|
|
$
|
12.48
|
|
|
|
$
|
20.85
|
|
|
$
|
18.28
|
|
|
$
|
19.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
Excludes activity classified as discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses per Boe (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
$
|
20.93
|
|
|
$
|
21.02
|
|
|
$
|
19.30
|
|
|
$
|
19.27
|
|
|
$
|
20.11
|
|
|
|
$
|
18.11
|
|
|
$
|
17.78
|
|
|
$
|
17.93
|
|
|
|
Lease and facility operating
|
|
$
|
5.74
|
|
|
$
|
5.34
|
|
|
$
|
5.07
|
|
|
$
|
4.93
|
|
|
$
|
5.26
|
|
|
|
$
|
5.87
|
|
|
$
|
5.55
|
|
|
$
|
5.69
|
|
|
|
Gathering, processing and transportation
|
|
$
|
2.17
|
|
|
$
|
2.57
|
|
|
$
|
2.51
|
|
|
$
|
2.54
|
|
|
$
|
2.45
|
|
|
|
$
|
2.65
|
|
|
$
|
2.16
|
|
|
$
|
2.38
|
|
|
|
Taxes other than income
|
|
$
|
1.47
|
|
|
$
|
2.05
|
|
|
$
|
1.84
|
|
|
$
|
2.37
|
|
|
$
|
1.94
|
|
|
|
$
|
2.31
|
|
|
$
|
2.43
|
|
|
$
|
2.38
|
|
|
|
General and administrative
|
|
$
|
7.34
|
|
|
$
|
7.09
|
|
|
$
|
6.50
|
|
|
$
|
6.71
|
|
|
$
|
6.90
|
|
|
|
$
|
5.27
|
|
|
$
|
4.80
|
|
|
$
|
5.02
|
|
|
|
Interest expense
|
|
$
|
7.89
|
|
|
$
|
6.72
|
|
|
$
|
6.40
|
|
|
$
|
5.87
|
|
|
$
|
6.69
|
|
|
|
$
|
5.75
|
|
|
$
|
4.83
|
|
|
$
|
5.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
Excludes activity classified as discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WPX Energy, Inc.
|
Reconciliation of NON-GAAP Measures
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
2017
|
|
(Dollars in millions, except per share amounts)
|
|
1st Qtr
|
|
2nd Qtr
|
|
3rd Qtr
|
|
4th Qtr
|
|
Year
|
|
|
1st Qtr
|
|
2nd Qtr
|
|
YTD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted loss from continuing operations
available to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations available to WPX Energy,
Inc. common stockholders - reported
|
|
$
|
(5
|
)
|
|
$
|
(229
|
)
|
|
$
|
(244
|
)
|
|
$
|
(174
|
)
|
|
$
|
(652
|
)
|
|
|
$
|
90
|
|
|
$
|
72
|
|
|
$
|
162
|
|
|
Pre-tax adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments reported in exploration expense
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
23
|
|
|
$
|
-
|
|
|
$
|
23
|
|
|
|
Impairment of inventory
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
4
|
|
|
$
|
-
|
|
|
$
|
4
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Net (gain) loss on sales of assets and divestment of transportation
contracts
|
|
$
|
(198
|
)
|
|
$
|
(4
|
)
|
|
$
|
227
|
|
|
$
|
(3
|
)
|
|
$
|
22
|
|
|
|
$
|
(35
|
)
|
|
$
|
(7
|
)
|
|
$
|
(42
|
)
|
|
|
Accrual for Denver office lease
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
5
|
|
|
$
|
-
|
|
|
$
|
5
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Costs related to severance and relocation
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
15
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Previously capitalized costs expensed following credit facility
amendment
|
|
$
|
4
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
4
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
(Gain) loss on retirement of debt
|
|
$
|
(3
|
)
|
|
$
|
3
|
|
|
$
|
-
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Unrealized MTM (gain) loss
|
|
$
|
76
|
|
|
$
|
223
|
|
|
$
|
20
|
|
|
$
|
190
|
|
|
$
|
509
|
|
|
|
$
|
(208
|
)
|
|
$
|
(102
|
)
|
|
$
|
(310
|
)
|
|
Total pre-tax adjustments
|
|
$
|
(118
|
)
|
|
$
|
229
|
|
|
$
|
259
|
|
|
$
|
190
|
|
|
$
|
560
|
|
|
|
$
|
(220
|
)
|
|
$
|
(109
|
)
|
|
$
|
(329
|
)
|
|
|
Less tax effect for above items
|
|
$
|
43
|
|
|
$
|
(85
|
)
|
|
$
|
(96
|
)
|
|
$
|
(71
|
)
|
|
$
|
(208
|
)
|
|
|
$
|
83
|
|
|
$
|
40
|
|
|
$
|
122
|
|
|
|
Impact of state deferred tax rate change
|
|
$
|
14
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1
|
|
|
$
|
15
|
|
|
|
$
|
(6
|
)
|
|
$
|
-
|
|
|
$
|
(6
|
)
|
|
|
Impact of state tax valuation allowance (annual effective tax rate
method)
|
|
$
|
8
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
8
|
|
|
|
$
|
(6
|
)
|
|
$
|
(34
|
)
|
|
$
|
(40
|
)
|
|
|
Adjustment for estimated annual effective tax rate method
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
(26
|
)
|
|
$
|
(26
|
)
|
|
|
Loss on induced conversion of preferred stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
22
|
|
|
$
|
-
|
|
|
$
|
22
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Total adjustments, after tax
|
|
$
|
(53
|
)
|
|
$
|
144
|
|
|
$
|
185
|
|
|
$
|
120
|
|
|
$
|
397
|
|
|
|
$
|
(149
|
)
|
|
$
|
(129
|
)
|
|
$
|
(279
|
)
|
|
Adjusted loss from continuing operations available to common
stockholders
|
|
$
|
(58
|
)
|
|
$
|
(85
|
)
|
|
$
|
(59
|
)
|
|
$
|
(54
|
)
|
|
$
|
(255
|
)
|
|
|
$
|
(59
|
)
|
|
$
|
(57
|
)
|
|
$
|
(117
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted diluted loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations - diluted earnings per
share - reported
|
|
$
|
(0.02
|
)
|
|
$
|
(0.76
|
)
|
|
$
|
(0.72
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
(2.08
|
)
|
|
|
$
|
0.22
|
|
|
$
|
0.18
|
|
|
$
|
0.40
|
|
|
Impact of adjusted diluted weighted-average shares
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
Pretax adjustments (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairments reported in exploration expense
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
0.06
|
|
|
$
|
-
|
|
|
$
|
0.06
|
|
|
|
Impairment of inventory
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Net (gain) loss on sales of assets and divestment of transportation
contracts
|
|
$
|
(0.72
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.67
|
|
|
$
|
(0.01
|
)
|
|
$
|
0.07
|
|
|
|
$
|
(0.09
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.11
|
)
|
|
|
Accrual for Denver office lease
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Costs related to severance and relocation
|
|
$
|
0.01
|
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
0.01
|
|
|
$
|
0.05
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Previously capitalized costs expensed following credit facility
amendment
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.01
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
(Gain) loss on retirement of debt
|
|
$
|
(0.01
|
)
|
|
$
|
0.01
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
Unrealized MTM (gain) loss
|
|
$
|
0.27
|
|
|
$
|
0.74
|
|
|
$
|
0.06
|
|
|
$
|
0.55
|
|
|
$
|
1.62
|
|
|
|
$
|
(0.54
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.79
|
)
|
|
Total pretax adjustments
|
|
$
|
(0.44
|
)
|
|
$
|
0.76
|
|
|
$
|
0.76
|
|
|
$
|
0.55
|
|
|
$
|
1.78
|
|
|
|
$
|
(0.57
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.84
|
)
|
|
Less tax effect for above items
|
|
$
|
0.17
|
|
|
$
|
(0.28
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.67
|
)
|
|
|
$
|
0.22
|
|
|
$
|
0.12
|
|
|
$
|
0.31
|
|
|
|
Impact of state tax rate change
|
|
$
|
0.05
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.05
|
|
|
|
$
|
(0.01
|
)
|
|
$
|
-
|
|
|
$
|
(0.01
|
)
|
|
|
Impact of state valuation allowance (annual effective tax rate
method)
|
|
$
|
0.03
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.10
|
)
|
|
|
Adjustment for estimated annual effective tax rate method
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.07
|
)
|
|
|
Loss on induced conversion of preferred stock
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.06
|
|
|
$
|
-
|
|
|
$
|
0.07
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Total adjustments, after-tax
|
|
$
|
(0.19
|
)
|
|
$
|
0.48
|
|
|
$
|
0.55
|
|
|
$
|
0.35
|
|
|
$
|
1.26
|
|
|
|
$
|
(0.38
|
)
|
|
$
|
(0.32
|
)
|
|
$
|
(0.71
|
)
|
|
Adjusted diluted loss per common share
|
|
$
|
(0.21
|
)
|
|
$
|
(0.28
|
)
|
|
$
|
(0.17
|
)
|
|
$
|
(0.16
|
)
|
|
$
|
(0.82
|
)
|
|
|
$
|
(0.15
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.30
|
)
|
|
Reported diluted weighted-average shares (millions)
|
|
|
276.1
|
|
|
|
300.7
|
|
|
|
341.5
|
|
|
|
344.6
|
|
|
|
313.3
|
|
|
|
|
410.4
|
|
|
|
423.2
|
|
|
|
418.8
|
|
|
|
Effect of dilutive securities due to adjusted loss from continuing
operations available to common stockholders
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
(24.1
|
)
|
|
|
(25.4
|
)
|
|
|
(26.7
|
)
|
|
Adjusted diluted weighted-average shares (millions)
|
|
|
276.1
|
|
|
|
300.7
|
|
|
|
341.5
|
|
|
|
344.6
|
|
|
|
313.3
|
|
|
|
|
386.3
|
|
|
|
397.8
|
|
|
|
392.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Per share impact is based on adjusted diluted weighted-average
shares.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDAX
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) - reported
|
|
$
|
(12
|
)
|
|
$
|
(198
|
)
|
|
$
|
(219
|
)
|
|
$
|
(172
|
)
|
|
$
|
(601
|
)
|
|
|
$
|
92
|
|
|
$
|
76
|
|
|
$
|
168
|
|
|
|
|
|
Interest expense
|
|
|
57
|
|
|
|
53
|
|
|
|
49
|
|
|
|
48
|
|
|
|
207
|
|
|
|
|
47
|
|
|
|
46
|
|
|
|
93
|
|
|
|
|
|
Provision (benefit) for income taxes
|
|
|
35
|
|
|
|
(130
|
)
|
|
|
(132
|
)
|
|
|
(98
|
)
|
|
|
(325
|
)
|
|
|
|
31
|
|
|
|
(53
|
)
|
|
|
(22
|
)
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
152
|
|
|
|
163
|
|
|
|
150
|
|
|
|
158
|
|
|
|
623
|
|
|
|
|
147
|
|
|
|
171
|
|
|
|
318
|
|
|
|
|
|
Exploration expenses
|
|
|
9
|
|
|
|
12
|
|
|
|
10
|
|
|
|
11
|
|
|
|
42
|
|
|
|
|
39
|
|
|
|
21
|
|
|
|
60
|
|
|
|
|
|
|
EBITDAX
|
|
|
241
|
|
|
|
(100
|
)
|
|
|
(142
|
)
|
|
|
(53
|
)
|
|
|
(54
|
)
|
|
|
|
356
|
|
|
|
261
|
|
|
|
617
|
|
|
|
|
Accrual for Denver office lease
|
|
|
-
|
|
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
|
|
5
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Net (gain) loss on sales of assets and divestment of transportation
contracts
|
|
|
(198
|
)
|
|
|
(4
|
)
|
|
|
227
|
|
|
|
(3
|
)
|
|
|
22
|
|
|
|
|
(35
|
)
|
|
|
(7
|
)
|
|
|
(42
|
)
|
|
|
|
Impairment of inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
4
|
|
|
|
-
|
|
|
|
4
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
Net (gain) loss on derivatives
|
|
|
(57
|
)
|
|
|
154
|
|
|
|
(38
|
)
|
|
|
148
|
|
|
|
207
|
|
|
|
|
(203
|
)
|
|
|
(116
|
)
|
|
|
(319
|
)
|
|
|
|
Net cash received (paid) related to settlement of derivatives
|
|
|
133
|
|
|
|
69
|
|
|
|
58
|
|
|
|
42
|
|
|
|
302
|
|
|
|
|
(5
|
)
|
|
|
14
|
|
|
|
9
|
|
|
|
|
(Income) loss from discontinued operations
|
|
|
12
|
|
|
|
(25
|
)
|
|
|
1
|
|
|
|
1
|
|
|
|
(11
|
)
|
|
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
|
|
|
Adjusted EBITDAX
|
|
$
|
131
|
|
|
$
|
94
|
|
|
$
|
115
|
|
|
$
|
135
|
|
|
$
|
475
|
|
|
|
$
|
115
|
|
|
$
|
152
|
|
|
$
|
267
|
|
|
WPX Energy, Inc.
|
Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
(Millions, except per share amounts)
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Product revenues:
|
|
|
|
|
|
|
|
|
|
Oil sales
|
|
$
|
226
|
|
|
$
|
142
|
|
|
$
|
414
|
|
|
$
|
239
|
|
|
Natural gas sales
|
|
|
40
|
|
|
|
24
|
|
|
|
84
|
|
|
|
49
|
|
|
Natural gas liquid sales
|
|
|
23
|
|
|
|
10
|
|
|
|
44
|
|
|
|
15
|
|
|
Total product revenues
|
|
|
289
|
|
|
|
176
|
|
|
|
542
|
|
|
|
303
|
|
|
Net gain (loss) on derivatives
|
|
|
116
|
|
|
|
(154
|
)
|
|
|
319
|
|
|
|
(97
|
)
|
|
Gas management
|
|
|
8
|
|
|
|
116
|
|
|
|
13
|
|
|
|
147
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
Total revenues
|
|
|
413
|
|
|
|
138
|
|
|
|
874
|
|
|
|
354
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
171
|
|
|
|
163
|
|
|
|
318
|
|
|
|
315
|
|
|
Lease and facility operating
|
|
|
53
|
|
|
|
41
|
|
|
|
101
|
|
|
|
83
|
|
|
Gathering, processing and transportation
|
|
|
21
|
|
|
|
20
|
|
|
|
42
|
|
|
|
36
|
|
|
Taxes other than income
|
|
|
23
|
|
|
|
16
|
|
|
|
42
|
|
|
|
27
|
|
|
Exploration
|
|
|
21
|
|
|
|
12
|
|
|
|
60
|
|
|
|
21
|
|
|
General and administrative (including equity-based compensation of
$9 million, $9 million, $16 million and $15 million for the
respective periods)
|
|
|
46
|
|
|
|
55
|
|
|
|
89
|
|
|
|
108
|
|
|
Gas management
|
|
|
8
|
|
|
|
132
|
|
|
|
13
|
|
|
|
171
|
|
|
Net gain on sales of assets
|
|
|
(7
|
)
|
|
|
(4
|
)
|
|
|
(42
|
)
|
|
|
(202
|
)
|
|
Other - net
|
|
|
8
|
|
|
|
2
|
|
|
|
12
|
|
|
|
4
|
|
Total costs and expenses
|
|
|
344
|
|
|
|
437
|
|
|
|
635
|
|
|
|
563
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
69
|
|
|
|
(299
|
)
|
|
|
239
|
|
|
|
(209
|
)
|
Interest expense
|
|
|
(46
|
)
|
|
|
(53
|
)
|
|
|
(93
|
)
|
|
|
(110
|
)
|
Investment income and other
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
2
|
|
|
|
1
|
|
Income (loss) from continuing operations before income taxes
|
|
|
23
|
|
|
|
(353
|
)
|
|
|
148
|
|
|
|
(318
|
)
|
Provision (benefit) for income taxes
|
|
|
(53
|
)
|
|
|
(130
|
)
|
|
|
(22
|
)
|
|
|
(95
|
)
|
Income (loss) from continuing operations
|
|
|
76
|
|
|
|
(223
|
)
|
|
|
170
|
|
|
|
(223
|
)
|
Income (loss) from discontinued operations
|
|
|
-
|
|
|
|
25
|
|
|
|
(2
|
)
|
|
|
13
|
|
Net income (loss)
|
|
|
76
|
|
|
|
(198
|
)
|
|
|
168
|
|
|
|
(210
|
)
|
|
Less: Dividends on preferred stock
|
|
|
4
|
|
|
|
6
|
|
|
|
8
|
|
|
|
11
|
|
Net income (loss) available to WPX Energy, Inc. common stockholders
|
|
$
|
72
|
|
|
$
|
(204
|
)
|
|
$
|
160
|
|
|
$
|
(221
|
)
|
|
|
|
|
|
|
|
|
|
|
Amounts available to WPX Energy, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
72
|
|
|
$
|
(229
|
)
|
|
$
|
162
|
|
|
$
|
(234
|
)
|
|
Income (loss) from discontinued operations
|
|
|
-
|
|
|
|
25
|
|
|
|
(2
|
)
|
|
|
13
|
|
|
Net income (loss)
|
|
$
|
72
|
|
|
$
|
(204
|
)
|
|
$
|
160
|
|
|
$
|
(221
|
)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.18
|
|
|
$
|
(0.76
|
)
|
|
$
|
0.41
|
|
|
$
|
(0.81
|
)
|
|
Income (loss) from discontinued operations
|
|
|
-
|
|
|
|
0.08
|
|
|
|
-
|
|
|
|
0.04
|
|
|
Net income (loss)
|
|
$
|
0.18
|
|
|
$
|
(0.68
|
)
|
|
$
|
0.41
|
|
|
$
|
(0.77
|
)
|
|
|
|
|
|
|
|
|
|
|
Basic weighted-average shares (millions)
|
|
|
397.8
|
|
|
|
300.7
|
|
|
|
392.1
|
|
|
|
288.2
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per common share:
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
$
|
0.18
|
|
|
$
|
(0.76
|
)
|
|
$
|
0.40
|
|
|
$
|
(0.81
|
)
|
|
Income (loss) from discontinued operations
|
|
|
-
|
|
|
|
0.08
|
|
|
|
-
|
|
|
|
0.04
|
|
|
Net income (loss)
|
|
$
|
0.18
|
|
|
$
|
(0.68
|
)
|
|
$
|
0.40
|
|
|
$
|
(0.77
|
)
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted-average shares (millions)
|
|
|
423.2
|
|
|
|
300.7
|
|
|
|
418.8
|
|
|
|
288.2
|
|
|
WPX Energy, Inc.
|
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
ASSETS
|
|
(Millions)
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
8
|
|
|
$
|
496
|
|
Accounts receivable, net of allowance of $1 million as of June 30,
2017 and $3 million as of December 31, 2016
|
|
|
205
|
|
|
|
168
|
|
Derivative assets
|
|
|
110
|
|
|
|
26
|
|
Inventories
|
|
|
41
|
|
|
|
36
|
|
Other
|
|
|
29
|
|
|
|
28
|
|
Total current assets
|
|
|
393
|
|
|
|
754
|
|
Properties and equipment (successful efforts method of accounting)
|
|
|
10,244
|
|
|
|
8,929
|
|
Less: Accumulated depreciation, depletion and amortization
|
|
|
(2,759
|
)
|
|
|
(2,455
|
)
|
Properties and equipment, net
|
|
|
7,485
|
|
|
|
6,474
|
|
Derivative assets
|
|
|
58
|
|
|
|
12
|
|
Other noncurrent assets
|
|
|
26
|
|
|
|
24
|
|
Total assets
|
|
$
|
7,962
|
|
|
$
|
7,264
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
348
|
|
|
$
|
222
|
|
Accrued and other current liabilities
|
|
|
244
|
|
|
|
303
|
|
Derivative liabilities
|
|
|
27
|
|
|
|
152
|
|
Total current liabilities
|
|
|
619
|
|
|
|
677
|
|
Deferred income taxes
|
|
|
226
|
|
|
|
251
|
|
Long-term debt, net
|
|
|
2,601
|
|
|
|
2,575
|
|
Derivative liabilities
|
|
|
8
|
|
|
|
63
|
|
Asset retirement obligations
|
|
|
98
|
|
|
|
100
|
|
Other noncurrent liabilities
|
|
|
106
|
|
|
|
132
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock (100 million shares authorized at $0.01 par value;
4.8 million shares outstanding at June 30, 2017 and December 31,
2016)
|
|
|
232
|
|
|
|
232
|
|
Common stock (2 billion shares authorized at $0.01 par value; 398.0
million shares and 344.7 million shares issued and outstanding at
June 30, 2017 and December 31, 2016)
|
|
|
4
|
|
|
|
3
|
|
Additional paid-in-capital
|
|
|
7,472
|
|
|
|
6,803
|
|
Accumulated deficit
|
|
|
(3,404
|
)
|
|
|
(3,572
|
)
|
Total stockholders' equity
|
|
|
4,304
|
|
|
|
3,466
|
|
Total liabilities and equity
|
|
$
|
7,962
|
|
|
$
|
7,264
|
|
|
|
|
|
|
WPX Energy, Inc.
|
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended June 30,
|
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
(Millions)
|
Operating Activities(a)
|
|
|
|
|
Net income (loss)
|
|
$
|
168
|
|
|
$
|
(210
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
318
|
|
|
|
324
|
|
|
Deferred income tax provision (benefit)
|
|
|
(24
|
)
|
|
|
(82
|
)
|
|
Provision for impairment of properties and equipment (including
certain exploration expenses)
|
|
|
58
|
|
|
|
19
|
|
|
Net (gain) loss on derivatives in continuing operations
|
|
|
(319
|
)
|
|
|
97
|
|
|
Net settlements related to derivatives in continuing operations
|
|
|
9
|
|
|
|
202
|
|
|
Net loss on derivatives included in discontinued operations
|
|
|
-
|
|
|
|
46
|
|
|
Amortization of stock-based awards
|
|
|
17
|
|
|
|
17
|
|
|
Net gain on sales of assets
|
|
|
(41
|
)
|
|
|
(254
|
)
|
|
|
|
|
|
|
|
|
Cash provided (used) by operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(49
|
)
|
|
|
102
|
|
|
|
Inventories
|
|
|
(3
|
)
|
|
|
9
|
|
|
|
Other current assets
|
|
|
(5
|
)
|
|
|
3
|
|
|
|
Accounts payable
|
|
|
72
|
|
|
|
(28
|
)
|
|
|
Federal income taxes receivable (payable)
|
|
|
12
|
|
|
|
(33
|
)
|
|
|
Accrued and other current liabilities
|
|
|
(45
|
)
|
|
|
(99
|
)
|
|
|
Payments on liabilities accrued in 2015 for retained transportation
and gathering contracts related to discontinued operations
|
|
|
(29
|
)
|
|
|
(30
|
)
|
|
|
Other, including changes in other noncurrent assets and liabilities
|
|
|
3
|
|
|
|
6
|
|
Net cash provided by operating activities (a)
|
|
|
142
|
|
|
|
89
|
|
|
|
|
|
|
|
|
Investing Activities(a)
|
|
|
|
|
Capital expenditures(b)
|
|
|
(542
|
)
|
|
|
(291
|
)
|
Proceeds from sales of assets
|
|
|
38
|
|
|
|
1,139
|
|
Purchase of business
|
|
|
(798
|
)
|
|
|
-
|
|
Purchase of investment
|
|
|
(3
|
)
|
|
|
-
|
|
Other
|
|
|
|
(3
|
)
|
|
|
(4
|
)
|
Net cash provided by (used in) investing activities (a)
|
|
|
(1,308
|
)
|
|
|
844
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
Proceeds from common stock
|
|
|
671
|
|
|
|
540
|
|
Dividends paid on preferred stock
|
|
|
(7
|
)
|
|
|
(11
|
)
|
Borrowings on credit facility
|
|
|
85
|
|
|
|
380
|
|
Payments on credit facility
|
|
|
(60
|
)
|
|
|
(645
|
)
|
Taxes paid for shares withheld
|
|
|
(10
|
)
|
|
|
(4
|
)
|
Payments for retirement of long-term debt
|
|
|
-
|
|
|
|
(196
|
)
|
Payments for credit facility amendment fees
|
|
|
-
|
|
|
|
(3
|
)
|
Other
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
Net cash provided by financing activities
|
|
|
678
|
|
|
|
60
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
(488
|
)
|
|
|
993
|
|
Cash and cash equivalents at beginning of period
|
|
|
496
|
|
|
|
38
|
|
Cash and cash equivalents at end of period
|
|
$
|
8
|
|
|
$
|
1,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts reflect continuing and discontinued operations unless
otherwise noted.
|
(b) Increase to properties and equipment
|
|
$
|
(596
|
)
|
|
$
|
(264
|
)
|
Changes in related accounts payable and accounts receivable
|
|
|
54
|
|
|
|
(27
|
)
|
Capital expenditures
|
|
$
|
(542
|
)
|
|
$
|
(291
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802006206/en/
Copyright Business Wire 2017