2015 MARGIN EXPANSION
“We continue to move the needle on well costs, operating costs, production and deal flow. First-quarter 2015 was tremendous for us when you consider just how far commodity prices fell and what we still achieved in earnings per share,” says Rick Muncrief, WPX CEO.
As a result of targeted capital allocations, productive discussions with service providers, ongoing process improvements and continued resource assessment, WPX:
- Increased crude oil volumes 79% vs. 1Q a year ago
- Set a new high for total liquids production, surpassing 50,000 barrels per day
- Reduced stimulation costs in the San Juan Gallup oil play 50% vs. 2014 average
- Improved spud-to-spud time in the San Juan Gallup by 17% vs. 4Q 2014
- Reduced LOE/Boe in the Williston Basin by 30% vs. 1Q a year ago
- Brought two new Niobrara wells online that each posted I.P. rates of more than 10 MMcf/d
- Decreased LOE, G&A and overall operating expenses vs. 1Q a year ago
As part of its long-term strategy to improve margins, WPX has taken steps to lower the basis differential on its San Juan Basin Gallup oil sales from roughly $13 per barrel during 2014 to approximately $8 to $10 per barrel. WPX will start to realize a portion of this benefit in the second quarter, with the full impact realized in the second half of the year and beyond.
In the same basin, WPX also continues to build out a new oil, gas and water gathering system for its Gallup development activity. Last year WPX installed 95 miles of pipeline. WPX installed another 37 miles of pipe during the first quarter, with plans to construct another 55 miles during the balance of the year. This ultimately furthers margin expansion efforts in the basin.
“We’re defining what success looks like and providing a means to track our progress. This is part of creating a high accountability culture at WPX.” View Video >
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