WPX Energy (WPX) Misses Q3 EPS by 32c, Revenues Miss

WPX Energy (NYSE: WPX) reported Q3 EPS of ($0.26), $0.32 worse than the analyst estimate of $0.06. Revenue for the quarter came in at $473 million versus the consensus estimate of $593.02 million.

Outlook Points to 2021 Momentum

• Current oil rate of approx. 140,000 bbl/d already at the year-end target
• Increasing 4Q oil target to 137,000-143,000 bbl/d
• Reducing 2020 full-year CAPEX by another $50 million
• Raising 2020 free cash flow projection by 50% to more than $300 million
• Reducing LOE to $5.10-$5.40 per BOE for full-year 2020, a 14% improvement
• Attractive Bone Spring results in the Delaware Basin
• Transformational merger with Devon on track, creating a leading U.S. energy company

“Our proposed merger is on track and is proving to be a transformational event not only for our two companies, but for our industry as a whole based on events that have unfolded since our announcement,” said Rick Muncrief, WPX’s chairman and chief executive officer.

“Consolidation is a strategic step that reduces costs, improves margins and accelerates the return of capital to shareholders in very meaningful ways.

“WPX has been a leader in our peer group, and the combined company will provide us with even more strength and capacity to deliver value through disciplined management and an unwavering focus on profitable, per-share growth,” Muncrief said.

“Our teams are committed to closing the transaction as quickly as possible in order to begin executing on the performance improvement opportunities we know already exist today.”

“I want to commend WPX employees for their continued professionalism and commitment to a smooth integration despite the personal impacts that will undoubtedly occur at all levels of our organization as we act boldly on behalf of shareholders,” Muncrief added.

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

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