Oil and NGL sales accounted for 96% of WPX’s 1Q 2018 total product revenue of $407 million following the divestitures of its San Juan Basin assets, concluding with the sale of its Gallup holdings in March.
WPX reported first-quarter oil volumes of 65,800 bbl/d from its two remaining basins led by 33,800 bbl/d in the Delaware Basin. Delaware oil volumes were 8 percent higher than the most recent quarter and 149 percent higher than a year ago.
Significant winter weather in the Williston Basin delayed the timing of first sales on the 7-well Arikara pad by roughly 50 days. This impacted first-quarter oil production by 3,500 bbl/d.
Once online, the Arikara wells showed strong results with cumulative volumes of more than 406,000 Boe after 30 days of initial production despite being choked back considerably due to takeaway limitations imposed by winter road restrictions.
The company expects overall second-quarter oil volumes to grow 16 percent to an average of 75,000-77,000 bbl/d. WPX’s expected oil growth in the second quarter essentially replaces the San Juan Gallup oil production in just one quarter.
The forecast is based on recent strong well performance in both of WPX’s basins. WPX completed 25 gross operated wells (24 net) in the Delaware Basin in the first quarter, including the 2-mile Quinn 37-36C 5H lateral that posted a 24-hour high of 3,843 Boe/d (73% oil) during initial production.
WPX reported an unaudited first-quarter 2018 net loss from continuing operations available to common shareholders of $30 million, or a loss of $0.07 per share on a diluted basis. The loss was driven by $69 million of net losses associated with its hedge book resulting from higher forward oil prices.
The adjusted net loss from continuing operations in first-quarter 2018 was $22 million, or a loss of $0.06 per share. A reconciliation accompanies the press release.