WPX Energy (WPX) Misses Q3 EPS by 26c, Miss on Revenues

WPX Energy (NYSE: WPX) reported Q3 EPS of ($0.38), $0.26 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $326 million versus the consensus estimate of $327.62 million.

GUIDANCE

WPX is raising its 2017 full-year oil production guidance to an average of 59-62 Mbbl/d vs. the previous estimate of 57-60 Mbbl/d. Guidance for total equivalent production in 2017 is now 106-117 Mboe/d vs. the previous estimate of 105 to 116 Mboe/d.

Capital expenditures for third-quarter 2017 were $315 million, including $30 million for items not associated with D&C activity such as infrastructure development that was reimbursed in the JV closing process, facilities construction and land purchases.

WPX expects a slower capital run rate in the final quarter this year by deferring a portion of completion activity, culminating the San Juan Basin’s 2017 drilling program in early December and a scheduled rig release in the Delaware Basin.

For 2018, WPX is now targeting 40-45 percent year-over-year growth in its oil volumes based on higher performance from recent completions and expects to be cash flow neutral including proceeds from non-core asset sales.

WPX’s 2018 total capital budget is $1.1-$1.2 billion, including $60-$90 million for midstream costs. The budget is designed to fund an average of 9.5 rigs during the year ranging from 8-11 based on the timing of activity, including 6-7 in the Delaware Basin, 2-3 in the Williston Basin and 0-1 in the San Juan Gallup oil play.

The 2018 plan also includes completing an inventory of approximately 35 DUCs expected at year-end 2017, adding a third frac crew in the Delaware Basin and drilling longer laterals in the Delaware – representing an expected increase of more than 20 percent in aggregate footage vs. 2017.

WPX expects total production in 2018 ranging from 132-143 Mboe/d, including 82-88 Mbbl/d of oil. Cash operating expense (not including DD&A) is estimated at $9.75-$11.00 per Boe.

For earnings history and earnings-related data on WPX Energy (WPX) click here.

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