A FOUNDATION FOR 2014 AND BEYOND
WPX Energy has a 2014 capital plan of $1.47 billion (midpoint), with approximately 85 percent of spending allocated to Williston, Piceance and San Juan Gallup development. Highlights include:
• 39 percent planned increase in domestic oil volumes
• 62 Williston Basin oil wells (gross) planned – an increase of 25 percent vs. 2013
• 29 San Juan Gallup oil wells planned – nearly doubling 2013 activity
• Recent transactions increase Gallup oil acreage by 40 percent to 43,000 acres
• 285 natural gas wells (gross) planned in the Piceance, including up to 10 Niobrara wells
• 6 percent expected exit rate growth in the Piceance vs. 2013 exit rate
WPX expects these investments to drive an estimated 2014 December exit rate of 1,310 MMcfe/d in total production, which is 5 percent higher than the 2013 exit rate. Oil and liquids are expected to account for 25 percent of WPX’s 2014 exit rate.
The 2014 plan represents a 20 percent capital increase vs. 2013 spending, driven by larger investments in domestic oil drilling. More than half of WPX’s planned 2014 investments are in domestic oil properties.
WPX expects to drill 376 gross operated wells in 2014 by deploying an average of 15 to 16 rigs. Compared with 2013, this represents a two-rig increase in the Piceance for a total of nine rigs, an increase of one rig in the Williston for a total of five, and an increase of one rig in the San Juan Gallup for a total of two.
Jim Bender, WPX CEO said, “Increased oil volumes, efficient development of our resource base and enhanced balance sheet flexibility will help drive increased cash flows and better overall results.
“We have increased our hedge positions as commodity prices improved and continue to evaluate all aspects of our operations to drive cost reductions.”
We’re working to replicate our proven efficiency model across WPX. We recently drilled a Piceance Valley well in just 3.7 days.
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Canton, MA 02021-1011
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