WPX Energy Inc.’s WPX second-quarter 2019 earnings of 9 cents per share surpassed the Zacks Consensus Estimate of 7 cents by 28.6%. The bottom line also increased from 6 cents reported in the year-ago quarter.
The company reported GAAP earnings of 72 cents in the second quarter against a loss of 21 cents in the year-ago period. The difference between GAAP and operating earnings in the reported quarter was due to a one-time gain related to its equity interest in the sale of the Oryx II pipeline project.
WPX Energy’s quarterly revenues of $695 million beat the Zacks Consensus Estimate of $578 million by 20.3% and improved from the year-ago figure of $430 million by 61.6%.
WPX Energy, Inc. Price, Consensus and EPS Surprise
WPX Energy, Inc. price-consensus-eps-surprise-chart | WPX Energy, Inc. Quote
Highlights of the Release
Total production in the second quarter was 159.6 thousand barrels of oil equivalent per day (Mboe/d), up 28% year over year. Liquids volumes accounted for nearly 79% of total production, reflecting the company’s increasing focus on oil.
Oil production in the quarter was 97.9 thousand barrels per day, which was nearly 21% higher than the year-ago level, courtesy of 30% and 25% growth in volumes in Delaware and Williston basins over the past 12 months.
Total expenses were $514 million, up 18.7% from $433 million in the year-ago quarter.
Interest expenses in the reported quarter were $40 million, up 2.6% from $39 million a year ago.
The company initiated a program to repurchase up to $400 million of shares in the next 24 months, which will further increase WPX Energy’s shareholder value.
Realized Prices & Hedges
Realized oil prices in the quarter were $57.42 per barrel, down 9.8% from the year-ago level.
Realized natural gas prices were 88 cents per thousand cubic feet, down 21.4% from a year ago. Realized prices for natural gas liquids were down 41.7% from the year-ago quarter to $12.21 per barrel.
For the remainder of 2019, WPX Energy has 60,500 bbl/d of oil hedged at a weighted average price of $55.29 per barrel. The company also has 110,000 million British thermal units (MMBtu) per day of natural gas hedged at a weighted average price of $3.07 per MMBtu.
Cash and cash equivalents of WPX Energy on Jun 30, 2019 were $109 million compared with $3 million as of Dec 31, 2018.
Its long-term debt on Jun 30, 2019 was $2,157 million, down from $2,485 million at the end of December 2018.
Net cash from operating activities in the first half of 2019 was $634 million compared with $428 million recorded in the comparable year-ago period. During the first six months of 2019, capital expenditure was $774 million compared with $660 million in the comparable prior-year period.
Taking into consideration strong production in the first half of the year, WPX Energy made an upward revision in its total production guidance for 2019 to 160-165 Mboe/d from the prior range of 149-161 Mboe/d.
The company now expects 2019 oil production in the range of 101-103 Mboe/d versus the prior guided range of 96-100 Mboe/d.
Capital expenditure for 2019 is expected in the range of $1,100-$1,275 million.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Noble Energy, Inc. NBL incurred an adjusted loss of 10 cents per share in second-quarter 2019, narrower than the Zacks Consensus Estimate of a loss of 13 cents.
EQT Corporation EQT reported second-quarter 2019 adjusted earnings of 9 cents per share against the Zacks Consensus Estimate of a loss of 4 cents.
Cabot Oil & Gas Corporation’s COG second-quarter 2019 earnings per share of 36 cents surpassed the Zacks Consensus Estimate of 33 cents.
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