WPX Energy (WPX) Tops Q1 EPS by 1c, Revenues Beat

WPX Energy (NYSE: WPX) reported Q1 EPS of $0.07, $0.01 better than the analyst estimate of $0.06. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $628.29 million.

Taking steps to protect cash flow and preserve operational flexibility

• Planning $700 million in capital cuts vs. original plan
• Targeting $100 million of cost savings this year from operating expenses and G&A
• More than 90 percent of remaining 2020 oil output financially hedged at just over $57 per barrel
• $2.1 billion borrowing base for credit facility reaffirmed; matures April 2023
• No significant senior bond maturities due until August 2023 with $406 million outstanding
• Still expecting to generate approximately $150 million of free cash flow in 2020

CEO PERSPECTIVE

“In these unprecedented times, we’re acutely focused on keeping our employees healthy, protecting our cash flow and preserving our assets for future value creation,” said Rick Muncrief, WPX chairman and chief executive officer.

“Our financial position is solid as evidenced by banks and lenders who recently reaffirmed our credit facility, along with the ratings agencies who reaffirmed our credit ratings in the last few weeks.

“Our experienced team also has taken numerous measures to reduce capital, expenses and the flow of our volumes in this dislocated market.

“We will continue to maintain the strength of our balance sheet and remain disciplined in our approach to the present challenges. Nothing is easy right now, but rebalancing supply with demand will take place over the remainder of the year.

“We remain confident in our long-term plan and I want to thank everyone across WPX for how they’ve adapted to today’s realities, kept the business running, integrated the attractive Felix assets and found numerous ways to help others in need,” Muncrief added.

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

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