Current WPX Stock Info

WPX Energy (ticker: WPX) reported Q4 2017 oil volumes of 75,200 BOPD, which was 68% higher than a year ago, and 16% higher than Q3 2017.

WPX’s first two North Sunday Island wells in the Williston Basin have 120-day cumulative production of more than 576,000 BOE (81% oil), consisting of 298,000 BOE from the Hidatsa North 14-23HX well and 278,000 BOE from the Mandan North 13-24HW well.

According to internal and public data, WPX’s North Sunday Island wells have the highest cumulative oil production over 90-day and 120-day periods for individual horizontal wells in the history of the Williston Basin, WPX said.

“Our disciplined execution against our multi-year plan continues to deliver new catalysts for long-term value creation. These drivers include transitioning to longer laterals in the Delaware Basin, the incredible performance from our Williston wells, our forward-looking approach to midstream infrastructure and a fast track to dramatically reduced leverage,” said Rick Muncrief, chairman and CEO.

Total production volumes of 130.6 MBOEPD in fourth quarter 2017 were up 47% vs. a year ago and 17% higher than third quarter 2017. Liquids volumes accounted for 70% of production in fourth quarter 2017, up 8% vs. a year ago. Production for 2017 includes gas volumes from WPX’s legacy gas holdings in the San Juan Basin that were divested at year-end.

Following WPX’s exit from the San Juan Basin with the expected sale of its Gallup holdings, production is expected to be approximately 80% liquids and 20% gas. Year-over-year total production increased 30% to 109.8 MBOEPD in 2017, predominately driven by development in the Delaware Basin.

WPX completed 137 gross operated wells (127 net) across its operating areas during 2017 and participated in another 28 gross (5 net) non-operated wells.

Basin updates

WPX Grows Oil Production 47% in Q4, Forecasts $1 Billion 2018 Drilling CapEx

WPX Asset Overview, Feb. 2018

Delaware Basin

Delaware production averaged 58.7 MBOEPD in fourth quarter 2017, up 41% vs. the sequential quarter and 134% higher than the same period in 2016.

WPX’s fourth quarter Delaware oil volumes of 31,200 Bbl/d increased 37% vs. third quarter 2017 and were 160% higher than a year ago.

WPX had 24 first sales in the basin during the fourth quarter, marking its highest level in 2017. There were 18 completions in the Wolfcamp A interval – five X/Y wells and one D well.

A 1.5-mile Wolfcamp X/Y lateral on the Lindsay 10-3 pad posted a 24-hour high of 3,634 BOEPD during initial production. It has 90-day cumulative production of 242,000 BOE (55% oil).

A 2-mile Wolfcamp D lateral on the CBR 6-7 pad posted a 24-hour high of 3,639 BOEPD during initial production. It has 90-day cumulative production of 203,000 BOE (34% oil).

WPX’s 1.5-mile Lindsay 10-15 pad continues to show results from the Wolfcamp A formation. WPX now has 90-day cumulative production of 1,050,000 BOE (55% oil) from five long laterals. Cumulative 90-day oil production from the five wells exceeds 576,000 barrels.

Williston Basin

Williston Basin production averaged 38.7 MBOEPD in fourth quarter 2017, up 8% vs. the sequential quarter and 34% higher than the same period in 2016.

WPX’s fourth quarter Williston oil volumes of 33,100 Bbl/d increased 6% vs. third quarter 2017, and were 38% higher than a year ago.

WPX had six first sales in the basin during the fourth quarter – all 2-mile laterals from the Mandaree South and Mabel Levings pads. Three are Bakken Wells and three are Three Forks wells.

Four of the six fourth quarter completions had 24-hour peak rates of approximately 3,400 BOEPD or better, WPX said. The highest rate occurred on the Mandaree South 25-36HC well, which posted 3,837 BOEPD (81% oil).

The Hidatsa and Mandan North wells are the first two of 23 wells planned in the North Sunday Island area. Seven wells on the Arikara pad are scheduled for completion late in the first quarter. Another 11 wells are being drilled – seven on the Hidatsa pad and four on the Mandan North pad.

Reserves

WPX’s proved reserves at Dec. 31, 2017, were 436.2 MMBOE – 60% of the company’s proved reserves were oil, up from 50% in 2016.

The company replaced its overall 2017 production at a rate of 459%, excluding divestitures. Approximately 77% of WPX’s reserves are oil and NGL, up from 65% at year-end 2016.

Permian proved reserves increased 76% from a year ago to 252.4 MMBOE at year-end 2017. Williston proved reserves grew 25% to 131.2 MMBOE. San Juan proved reserves decreased 42% to 52.6 MMBOE as a result of divesting natural gas holdings in the basin.

Recent events

  • During fourth quarter 2017, WPX closed on the formation of a Permian Basin midstream joint venture with Howard Energy Partners and completed the divestiture of its legacy natural gas position in the San Juan Basin
    • WPX received $349 million from Howard in the joint venture transaction and $175 million on the legacy gas sale subject to post-closing adjustments
  • Subsequent to Dec. 31, 2017, WPX signed an agreement to sell its holdings in the San Juan Basin’s Gallup oil play for $700 million. This represents the remainder of WPX’s position in the basin. Closing is expected to occur in the first quarter
  • Also in January 2018, WPX signed an agreement to divest certain non-operated mineral interests in the Williston Basin for $20 million. Closing is expected to occur in the first quarter

Financial summary

Total capital spending for full-year 2017 was $1.2 billion, including land purchases and investments in midstream development.

Oil and NGL sales of $398 million accounted for 91% of WPX’s fourth quarter total product revenues of $439 million. Quarterly oil revenue grew 106% vs. the same period in 2016, this growth was driven by higher production volumes and higher average prices.

WPX’s fourth quarter 2017 net loss from continuing operations, attributable to common shareholders, was $35 million, or a loss of $(0.09) per share on a diluted basis. For full-year 2017, WPX reported a net loss from continuing operations, attributable to common shareholders, was $26 million, or a loss of $(0.06) per share.

2018

WPX expects 75-80 Mbbl/d of oil and 117-126 MBOEPD of production on a pro forma basis in 2018.

Total capital spending for continuing ops and midstream equity investments is estimated at $1,160-$1,310 million, WPX said, and this figure includes funding for land acquisition and midstream construction. Capital for drilling and completions is $1,040-$1,110 million.


Legal Notice