Share this page

WPX Energy Announces First-Quarter 2012 Results

5/3/2012

TULSA, Okla., May 03, 2012 (BUSINESS WIRE) --WPX Energy (NYSE:WPX) today announced its unaudited operating and financial results for the first-quarter of 2012. Recent highlights include:

  • Domestic oil volumes increased approximately 150% vs. a year ago
  • Bakken Shale oil production averaged 8,700 barrels per day in March
  • Total oil and NGL sales revenue rose 45% vs. a year ago
  • Total oil and NGL production up 26% vs. a year ago
  • Total volumes for all production up 11% vs. a year ago
  • $306 million sale of non-core properties further strengthens balance sheet

MANAGEMENT PERSPECTIVE

"Our first-quarter operations show increased oil and liquids production, disciplined cost management and strength in our financial position," CEO Ralph Hill said.

"For the first three months of the year, our daily oil and gas liquids volumes increased 26 percent and accounted for 20 percent of our overall daily production.

"The shift that's taking place in our production profile is evidence of the diversity and quality we have in our existing properties.

"Because of this transformation and the strength of our assets, our adjusted EBITDAX for the quarter was only down 6 percent despite decade-low prices for natural gas and a 20 percent drop in our own net realized average price for gas.

"We responded decisively to these headwinds by cutting our capital early on and tightening our business focus by selling non-core assets.

"We have ample financial flexibility and a very strong balance sheet that will serve us well as we continue to execute on our value-creation priorities."

PRODUCTION

First-quarter 2012 production was led by a 68 percent increase in overall oil production and a 12 percent increase in overall NGL production.

Oil production in the company's highest rate-of-return basin - the Bakken Shale - averaged close to 8,700 barrels per day in March, which is nearly five times higher than in first-quarter 2011.

Over the entire first-quarter of 2012, Bakken production averaged 7,700 barrels per day, which is a 20 percent sequential increase vs. fourth-quarter 2011 and more than 300 percent higher than first-quarter 2011.

NGL production in the liquids-rich Piceance Basin was up 10 percent vs. a year ago, averaging 29.6 Mbbl/d in the first quarter of 2012. Total NGL volumes were up 12 percent.

Total natural gas production of 1,133 MMcf/d in first-quarter 2012 was 8 percent higher than the prior-year comparable period and 4 percent higher than fourth-quarter 2011.

Natural gas production in the Marcellus Shale continues to be curtailed due to high line pressures associated with new gathering capacity, but still reached an average of 53 MMcf/d for first-quarter 2012.

The company's overall domestic and international production climbed 11 percent in first-quarter 2012 vs. the same period in 2011 to an average of 1,413 MMcfe/d.

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Production

 

 

1Q

 

 

 

 

 

4Q

 

 

Sequential

 

 

 

2012

 

 

2011

 

 

Change

 

 

2011

 

 

Change

Natural gas (MMcf/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Piceance Basin

 

 

690

 

 

654

 

 

6%

 

 

686

 

 

1%

Marcellus Shale

 

 

53

 

 

9

 

 

489%

 

 

27

 

 

96%

Powder River Basin

 

 

223

 

 

225

 

 

-1%

 

 

229

 

 

-3%

San Juan Basin

 

 

139

 

 

130

 

 

7%

 

 

119

 

 

17%

Other

 

 

28

 

 

30

 

 

-7%

 

 

30

 

 

-7%

Subtotal (MMcf/d)

 

 

1,133

 

 

1,048

 

 

8%

 

 

1,091

 

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (Mbbl/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Piceance

 

 

29.6

 

 

26.8

 

 

10%

 

 

27.1

 

 

9%

Other

 

 

1.1

 

 

0.6

 

 

83%

 

 

0.9

 

 

22%

Subtotal (Mbbl/d)

 

 

30.7

 

 

27.4

 

 

12%

 

 

28.0

 

 

10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (Mbbl/d)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bakken Shale

 

 

7.7

 

 

1.8

 

 

328%

 

 

6.4

 

 

20%

Piceance

 

 

2.8

 

 

2.4

 

 

17%

 

 

2.2

 

 

27%

International

 

 

5.6

 

 

5.3

 

 

6%

 

 

5.9

 

 

-5%

Other

 

 

0.0

 

 

0.1

 

 

NM

 

 

0.3

 

 

NM

Subtotal (Mboe/d)

 

 

16.1

 

 

9.6

 

 

68%

 

 

14.8

 

 

9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Production (MMcfe/d)

 

 

1,413

 

 

1,270

 

 

11%

 

 

1,348

 

 

5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figures exclude volumes for discontinued operations in the Barnett Shale and Arkoma Basin.

 

The domestic net realized average price for natural gas, inclusive of hedges, was $3.48 per Mcf in first-quarter 2012, down 20 percent from $4.37 per Mcf a year ago.

The domestic net realized average price for NGL was $33.46 per barrel in first-quarter 2012, down 4 percent from $34.84 per barrel a year ago.

The net realized average price for domestic oil, inclusive of hedges, was $84.54 per barrel in first-quarter 2012, down 3 percent from $87.13 per barrel a year ago.

FIRST-QUARTER FINANCIAL RESULTS

WPX results for first-quarter 2012 were impacted by non-cash charges stemming from a decline in forward natural gas prices.

These charges included an $11 million lower of cost or market charge on natural gas storage inventory and a $52 million impairment to certain costs of acquired unproved reserves.

WPX's accounting for costs of certain acquired unproved reserves is based on discounted cash flows. As a result, declines in forward commodity prices can drive further impairment regardless of whether there was a change in the underlying reserve estimates.

Including the charges, WPX reported an unaudited net loss attributable to WPX Energy of $43 million for first-quarter 2012, or a loss of $0.22 per share on a diluted basis.

This compares with a net loss of $3 million for the first three months of 2011, or a loss of $0.02 per share on a diluted basis.

Excluding the impairment charge but inclusive of the $11 million storage charge, WPX had an adjusted loss from continuing operations of $9 million, or a loss of $0.05 per share on a diluted basis, for first-quarter 2012, compared with net income of $5 million, or $0.03 per share on a diluted basis, for the same measure a year ago. A reconciliation is included at the end of this press release.

WPX's adjusted EBITDAX (a non-GAAP measure) for first-quarter 2012 was $262 million, compared with $278 million for the same measure a year ago.

The primary factor affecting the quarter-over-quarter decrease in adjusted EBITDAX was a 20 percent drop in the company's domestic net realized average price for natural gas, partially offset by increased oil production.

 

 

 

 

EBITDAX (non-GAAP)

 

 

First Quarter

 

 

 

2012

 

 

2011

 

 

 

millions

 

 

millions

Net income (loss)

 

 

($40)

 

 

($1)

Interest expense

 

 

$26

 

 

$49

Provision (benefit) for income taxes

 

 

($25)

 

 

$3

Depreciation, depletion and amortization

 

 

$228

 

 

$207

Exploration expenses

 

 

$19

 

 

$12

EBITDAX

 

 

$208

 

 

$270

 

 

 

 

 

 

 

Impairments

 

 

$52

 

 

-

Loss from discontinued operations

 

 

$2

 

 

8

Adjusted EBITDAX

 

 

$262

 

 

$278

 

 

 

 

 

 

 

EBITDAX represents earnings before interest expense, income taxes, depreciation, depletion and amortization and exploration expenses. Adjusted EBITDAX includes adjustments for impairments and discontinued operations.

WPX believes that these non-GAAP measures provide useful information regarding its ability to meet future debt service, capital expenditures and working capital requirements.

EXPENSES

On a per-unit basis, WPX's domestic lease operating expense (LOE) decreased 4 percent in first-quarter 2012 to $0.50 per Mcfe vs. $0.52 per Mcfe in first-quarter 2011.

Domestic gathering, processing and transportation charges were $1.09 per Mcfe in first-quarter 2012 vs. $1.02 per Mcfe in first-quarter 2011. The 2012 amount included an adjustment of approximately $9 million, or $0.07 per Mcfe, for royalties related to prior periods.

Taxes other than income for domestic operations decreased 17 percent to $0.20 per Mcfe in first-quarter 2012 vs. $0.24 per Mcfe in first-quarter 2011.

Domestic general and administrative expenses (G&A) decreased 10 percent to $0.52 per Mcfe in first-quarter 2012 vs. $0.58 per Mcfe in first-quarter 2011.

Domestic depreciation, depletion and amortization expenses (DD&A) decreased 2 percent to $1.80 per Mcfe in first-quarter 2012 vs. $1.84 per Mcfe in first-quarter 2011.

ASSET SALE

WPX expects to close the sale of its holdings in the Barnett Shale and Arkoma Basin in May. Upon closing, the sale will have an effective date of April 1.

An investor group comprised of KKR Natural Resources and Premier Natural Resources agreed to purchase the assets for $306 million - which equates to about $1.32 per proved Mcfe - subject to closing adjustments.

The properties represent less than 5 percent of WPX's year-end 2011 proved domestic reserves of nearly 5.1 trillion cubic feet equivalent.

All figures for first-quarter 2011 in this announcement have been restated to account for the assets in this sale as discontinued operations.

CASH AND LIQUIDITY

Net cash provided by operating activities in first-quarter 2012 was $252 million, or 5 percent higher than $240 million in first-quarter 2011.

At March 31, 2012, WPX had approximately $362 million in cash and cash equivalents - including $41 million for international operations.

The company's total liquidity at the end of the first quarter was more than $1.8 billion, including an undrawn $1.5 billion revolving credit agreement.

WPX also expects to receive approximately $275 million cash in the second quarter for the sale of its non-core properties in the Barnett Shale and Arkoma Basin, subject to closing adjustments.

WPX previously received $31 million toward the sale, which is included in the cash balance at the end of the first quarter.

CAPITAL INVESTMENT

During first-quarter 2012, WPX made $428 million of capital investments in its domestic operations, predominantly in the Bakken Shale, Piceance Basin and Marcellus Shale. This run rate is expected to decrease during the year as the impact of the company's planned reductions in capital spending take full effect.

For full-year 2012, WPX continues to work within a capital budget of $1.2 billion. As previously announced in February, this will facilitate the addition of a sixth rig in the Bakken Shale at mid-year, as well as an average of five rigs in the Piceance Basin and three rigs in Susquehanna County in the Marcellus Shale.

DEVELOPMENT ACTIVITY

In the first quarter of 2012, WPX participated in 163 gross (115 net) wells in the United States. This figure represents the number of wells that were completed and began commercial delivery of production. Highlights for the company's core growth areas are provided below.

In the Bakken Shale, WPX completed 8 gross (7 net) wells and had five rigs operating during the first quarter. A sixth rig - a new, fit-for-purpose rig - is expected by mid-year. At that point, two of WPX's rigs in the Bakken will be new, fit-for-purpose rigs, with the remaining four rigs being converted by end of summer. As these new rigs are implemented, WPX plans to accelerate multi-well drilling from its pad sites. By the end of the third quarter, WPX expects to have its acreage held by production.

In the Piceance Basin, WPX is able to extract and retain natural gas liquids from its gas production stream. The company receives Mont Belvieu-based pricing for these liquids through its transportation arrangements. During the first quarter, WPX completed 92 gross (81 net) wells in the Piceance and released three rigs to reach the level of five that the company plans to maintain for 2012.

In the Marcellus Shale, WPX is high-grading its rig fleet as it is in the Bakken to continue to reduce drilling times. Incoming rigs for 2012 are specifically designed for conditions in the Appalachia Basin. During the first quarter, WPX completed 11 wells (9 net) in the Marcellus and had as many as four rigs operating. Only one rig is deployed now, with plans for delivery of a second rig in May that is fit-for-purpose. Drilling in 2012 is focused on Susquehanna County, where the company plans to average three rigs this year.

GUIDANCE

WPX is updating its guidance to reflect the absence of expected earnings from its Barnett Shale properties which are part of a pending asset sale and included in discontinued operations.

 

 

 

 

 

 

 

WPX Energy Guidance

 

 

 

 

 

 

 

 

 

Previous Guidance

 

 

Updated Guidance

 

 

 

Feb. 23

 

 

May 3

Daily Production

 

 

 

 

 

 

Natural Gas (MMcf/d)

 

 

1,160

 

 

1,090

Oil (Mbbl/d)

 

 

18

 

 

18

NGL (Mbbl/d)

 

 

30

 

 

30

Equivalent (Mmcfe/d)

 

 

1,450

 

 

1,380

 

 

 

 

 

 

 

Adjusted EBITDAX ($MM)

 

 

$1,200

 

 

$1,175

Capital Spending ($MM)

 

 

$1,200

 

 

$1,200

 

 

 

 

 

 

 

The company's updated forecast assumes the impact of existing hedges, a $3 NYMEX natural gas price, a $99 per barrel oil price and a $51 per barrel NGL price.

For the remaining three quarters of 2012, a $0.10 change in the price of natural gas equates to an estimated $14 million impact to EBITDAX. A $1 change in the price of oil equates to an estimated $2 million impact to EBITDAX. A $1 change in the price of an NGL barrel equates to a $2.3 million impact to EBITDAX.

WPX planned capital spending of $1.2 billion in 2012 is expected to yield a 50-60 percent increase in domestic oil production and an 8 percent increase in NGL production. Domestic natural gas production is expected to remain flat or decline slightly.

TODAY'S CONFERENCE CALL

WPX management will discuss the results during a webcast starting at 9 a.m. Eastern today. Participants can access the audio and the slides for the event via the homepage at www.wpxenergy.com.

A limited number of phone lines also will be available at (888) 461-2024. The passcode is 2492039. International callers should dial (719) 325-2248 and use the same passcode. A replay will be available on the company's website for one year following the event.

Form 10-Q

WPX plans to file its first-quarter Form 10-Q with the Securities and Exchange Commission this week. Once filed, the document will be available on both the SEC and WPX websites.

Upcoming Conference Presentation

WPX CEO Ralph Hill is slated to present at the UBS Global Oil and Gas Conference in Austin on Wednesday, May 23. Hill's presentation is scheduled to begin at approximately 11:55 a.m. Central. Please visit www.wpxenergy.com on the day of the event to view the webcast.

About WPX Energy, Inc.

WPX Energy is an exploration and production company focused on developing its significant natural gas, natural gas liquids and oil reserves, particularly in the Bakken Shale, Piceance Basin and Marcellus Shale. WPX also has domestic operations in the Powder River and San Juan basins, as well as international investments in Argentina and Colombia. Go to http://www.wpxenergy.com/investors/subscribe-to-email/ to join our e-mail list.

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC's website at www.sec.gov.

Additionally, the SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible - from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. From time to time, we elect to use "probable" reserves and "possible" reserves, excluding their valuation. The SEC defines "probable" reserves as "those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered." The SEC defines"possible" reserves as "those additional reserves that are less certain to be recovered than probable reserves." The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC's reserves reporting guidelines. Investors are urged to consider closely the disclosure in our SEC filings that may be accessed through the SEC's website at www.sec.gov.

The SEC's rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.

1Q 2012 ANALYST REPORT

WPX Energy, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

2012

(Dollars in millions)

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Year

 

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

 

$

408

 

 

 

$

423

 

 

 

$

440

 

 

 

$

423

 

 

 

$

1,694

 

 

 

$

357

 

 

 

 

 

Natural gas liquid sales

 

 

 

85

 

 

 

 

107

 

 

 

 

110

 

 

 

 

106

 

 

 

 

408

 

 

 

 

93

 

 

 

 

 

Oil and condensate sales

 

 

 

52

 

 

 

 

83

 

 

 

 

84

 

 

 

 

93

 

 

 

 

312

 

 

 

 

106

 

 

 

 

 

 

Total product revenues

 

 

 

545

 

 

 

 

613

 

 

 

 

634

 

 

 

 

622

 

 

 

 

2,414

 

 

 

 

556

 

 

 

 

Gas management

 

 

 

408

 

 

 

 

337

 

 

 

 

347

 

 

 

 

336

 

 

 

 

1,428

 

 

 

 

337

 

 

 

 

Mark to market gains and losses and hedge ineffectiveness

 

 

 

2

 

 

 

 

6

 

 

 

 

12

 

 

 

 

9

 

 

 

 

29

 

 

 

 

14

 

 

 

 

Other

 

 

 

3

 

 

 

 

4

 

 

 

 

3

 

 

 

 

3

 

 

 

 

13

 

 

 

 

3

 

 

 

 

 

 

Total revenues

 

 

 

958

 

 

 

 

960

 

 

 

 

996

 

 

 

 

970

 

 

 

 

3,884

 

 

 

 

910

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating

 

 

 

63

 

 

 

 

61

 

 

 

 

70

 

 

 

 

68

 

 

 

 

262

 

 

 

 

67

 

 

 

 

Gathering, processing and transportation

 

 

 

112

 

 

 

 

121

 

 

 

 

130

 

 

 

 

124

 

 

 

 

487

 

 

 

 

135

 

 

 

 

Taxes other than income

 

 

 

30

 

 

 

 

43

 

 

 

 

32

 

 

 

 

29

 

 

 

 

134

 

 

 

 

30

 

 

 

 

Gas management, including charges for unutilized pipeline capacity

 

 

 

417

 

 

 

 

345

 

 

 

 

360

 

 

 

 

351

 

 

 

 

1,473

 

 

 

 

355

 

 

 

 

Exploration

 

 

 

12

 

 

 

 

14

 

 

 

 

74

 

 

 

 

26

 

 

 

 

126

 

 

 

 

19

 

 

 

 

Depreciation, depletion and amortization

 

 

 

207

 

 

 

 

224

 

 

 

 

239

 

 

 

 

232

 

 

 

 

902

 

 

 

 

228

 

 

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

367

 

 

 

 

367

 

 

 

 

52

 

 

 

 

General and administrative

 

 

 

67

 

 

 

 

63

 

 

 

 

70

 

 

 

 

75

 

 

 

 

275

 

 

 

 

68

 

 

 

 

Other-net

 

 

 

1

 

 

 

 

4

 

 

 

 

(1

)

 

 

 

(4

)

 

 

 

-

 

 

 

 

5

 

 

 

 

 

 

Total costs and expenses

 

 

 

909

 

 

 

 

875

 

 

 

 

974

 

 

 

 

1,268

 

 

 

 

4,026

 

 

 

 

959

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

49

 

 

 

 

85

 

 

 

 

22

 

 

 

 

(298

)

 

 

 

(142

)

 

 

 

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

(49

)

 

 

 

(48

)

 

 

 

-

 

 

 

 

(20

)

 

 

 

(117

)

 

 

 

(26

)

 

Interest capitalized

 

 

 

4

 

 

 

 

4

 

 

 

 

-

 

 

 

 

1

 

 

 

 

9

 

 

 

 

2

 

 

Investment income and other

 

 

 

6

 

 

 

 

6

 

 

 

 

7

 

 

 

 

7

 

 

 

 

26

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

$

10

 

 

 

$

47

 

 

 

$

29

 

 

 

$

(310

)

 

 

$

(224

)

 

 

$

(63

)

 

Provision (benefit) for income taxes

 

 

 

3

 

 

 

 

17

 

 

 

 

10

 

 

 

 

(104

)

 

 

 

(74

)

 

 

 

(25

)

 

Income (loss) from continuing operations

 

 

$

7

 

 

 

$

30

 

 

 

$

19

 

 

 

$

(206

)

 

 

$

(150

)

 

 

$

(38

)

 

Loss from discontinued operations

 

 

 

(8

)

 

 

 

(2

)

 

 

 

(3

)

 

 

 

(129

)

 

 

 

(142

)

 

 

 

(2

)

 

Net income (loss)

 

 

$

(1

)

 

 

$

28

 

 

 

$

16

 

 

 

$

(335

)

 

 

$

(292

)

 

 

$

(40

)

 

 

Less: Net income attributable to noncontrolling interests

 

 

 

2

 

 

 

 

3

 

 

 

 

2

 

 

 

 

3

 

 

 

 

10

 

 

 

 

3

 

 

Net income (loss) attributable to WPX Energy

 

 

$

(3

)

 

 

$

25

 

 

 

$

14

 

 

 

$

(338

)

 

 

$

(302

)

 

 

$

(43

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Net Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

$

(1

)

 

 

$

28

 

 

 

$

16

 

 

 

$

(335

)

 

 

$

(292

)

 

 

$

(40

)

 

 

 

 

Interest expense

 

 

 

49

 

 

 

 

48

 

 

 

 

-

 

 

 

 

20

 

 

 

 

117

 

 

 

 

26

 

 

 

 

 

Provision (benefit) for income taxes

 

 

 

3

 

 

 

 

17

 

 

 

 

10

 

 

 

 

(104

)

 

 

 

(74

)

 

 

 

(25

)

 

 

 

 

Depreciation, depletion and amortization

 

 

 

207

 

 

 

 

224

 

 

 

 

239

 

 

 

 

232

 

 

 

 

902

 

 

 

 

228

 

 

 

 

 

Exploration expenses

 

 

 

12

 

 

 

 

14

 

 

 

 

74

 

 

 

 

26

 

 

 

 

126

 

 

 

 

19

 

 

 

 

 

 

EBITDAX

 

 

 

270

 

 

 

 

331

 

 

 

 

339

 

 

 

 

(161

)

 

 

 

779

 

 

 

 

208

 

 

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

367

 

 

 

 

367

 

 

 

 

52

 

 

 

 

Loss from discontinued operations

 

 

 

8

 

 

 

 

2

 

 

 

 

3

 

 

 

 

129

 

 

 

 

142

 

 

 

 

2

 

 

 

 

 

 

Adjusted EBITDAX

 

 

$

278

 

 

 

$

333

 

 

 

$

342

 

 

 

$

335

 

 

 

$

1,288

 

 

 

$

262

 

 

WPX Energy, Inc.

Domestic Segment

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

2012

(Dollars in millions)

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Year

 

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

 

$

404

 

 

 

$

419

 

 

 

$

436

 

 

 

$

419

 

 

 

$

1,678

 

 

 

$

353

 

 

 

 

 

Natural gas liquid sales

 

 

 

84

 

 

 

 

106

 

 

 

 

109

 

 

 

 

105

 

 

 

 

404

 

 

 

 

92

 

 

 

 

 

Oil and condensate sales

 

 

 

34

 

 

 

 

63

 

 

 

 

62

 

 

 

 

67

 

 

 

 

226

 

 

 

 

80

 

 

 

 

 

 

Total product revenues

 

 

 

522

 

 

 

 

588

 

 

 

 

607

 

 

 

 

591

 

 

 

 

2,308

 

 

 

 

525

 

 

 

 

Gas management

 

 

 

408

 

 

 

 

337

 

 

 

 

347

 

 

 

 

336

 

 

 

 

1,428

 

 

 

 

337

 

 

 

 

Mark to market gains and losses and hedge ineffectiveness

 

 

 

2

 

 

 

 

6

 

 

 

 

12

 

 

 

 

9

 

 

 

 

29

 

 

 

 

14

 

 

 

 

Other

 

 

 

2

 

 

 

 

3

 

 

 

 

2

 

 

 

 

2

 

 

 

 

9

 

 

 

 

3

 

 

 

 

 

 

Total revenues

 

 

 

934

 

 

 

 

934

 

 

 

 

968

 

 

 

 

938

 

 

 

 

3,774

 

 

 

 

879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating

 

 

 

58

 

 

 

 

55

 

 

 

 

63

 

 

 

 

59

 

 

 

 

235

 

 

 

 

61

 

 

 

 

Gathering, processing and transportation

 

 

 

112

 

 

 

 

121

 

 

 

 

130

 

 

 

 

124

 

 

 

 

487

 

 

 

 

135

 

 

 

 

Taxes other than income

 

 

 

27

 

 

 

 

37

 

 

 

 

26

 

 

 

 

23

 

 

 

 

113

 

 

 

 

25

 

 

 

 

Gas management, including charges for unutilized pipeline capacity

 

 

 

417

 

 

 

 

345

 

 

 

 

360

 

 

 

 

351

 

 

 

 

1,473

 

 

 

 

355

 

 

 

 

Exploration

 

 

 

11

 

 

 

 

13

 

 

 

 

74

 

 

 

 

25

 

 

 

 

123

 

 

 

 

14

 

 

 

 

Depreciation, depletion and amortization

 

 

 

202

 

 

 

 

219

 

 

 

 

233

 

 

 

 

226

 

 

 

 

880

 

 

 

 

222

 

 

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

 

-

 

 

 

 

-

 

 

 

 

-

 

 

 

 

367

 

 

 

 

367

 

 

 

 

52

 

 

 

 

General and administrative

 

 

 

64

 

 

 

 

61

 

 

 

 

67

 

 

 

 

71

 

 

 

 

263

 

 

 

 

65

 

 

 

 

Other-net

 

 

 

-

 

 

 

 

4

 

 

 

 

(2

)

 

 

 

(5

)

 

 

 

(3

)

 

 

 

5

 

 

 

 

 

 

Total costs and expenses

 

 

 

891

 

 

 

 

855

 

 

 

 

951

 

 

 

 

1,241

 

 

 

 

3,938

 

 

 

 

934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

43

 

 

 

 

79

 

 

 

 

17

 

 

 

 

(303

)

 

 

 

(164

)

 

 

 

(55

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

(49

)

 

 

 

(48

)

 

 

 

-

 

 

 

 

(20

)

 

 

 

(117

)

 

 

 

(26

)

 

Interest capitalized

 

 

 

4

 

 

 

 

4

 

 

 

 

-

 

 

 

 

1

 

 

 

 

9

 

 

 

 

2

 

 

Investment income and other

 

 

 

1

 

 

 

 

2

 

 

 

 

2

 

 

 

 

1

 

 

 

 

6

 

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

$

(1

)

 

 

$

37

 

 

 

$

19

 

 

 

$

(321

)

 

 

$

(266

)

 

 

$

(77

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Production Volumes(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

 

92,473

 

 

 

 

95,207

 

 

 

 

102,615

 

 

 

 

98,485

 

 

 

 

388,780

 

 

 

 

101,346

 

 

Natural gas liquids (MBbls)

 

 

 

2,425

 

 

 

 

2,527

 

 

 

 

2,567

 

 

 

 

2,539

 

 

 

 

10,057

 

 

 

 

2,746

 

 

Oil (MBbls)

 

 

 

384

 

 

 

 

714

 

 

 

 

736

 

 

 

 

816

 

 

 

 

2,651

 

 

 

 

948

 

 

Combined equivalent volumes (MMcfe)(2)

 

 

 

109,331

 

 

 

 

114,655

 

 

 

 

122,430

 

 

 

 

118,614

 

 

 

 

465,030

 

 

 

 

123,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes production from our Arkoma Basin and Barnett Shale operations which were classified as held for sale and reported as discontinued operations and comprised approximately 5 percent of our total production.

 

(2)

Oil and natural gas liquids were converted to MMcfe using the ratio of one barrel of oil, condensate or natural gas liquids to six thousand cubic feet of natural gas.

 

 

 

Realized average price per unit, including the impact of hedges (1)

 

 

 

 

Natural gas (per Mcf)

 

 

$

4.37

 

 

 

$

4.41

 

 

 

$

4.25

 

 

 

$

4.25

 

 

 

$

4.32

 

 

 

$

3.48

 

 

 

Natural gas liquids (per barrel)

 

 

$

34.84

 

 

 

$

41.90

 

 

 

$

42.54

 

 

 

$

41.14

 

 

 

$

40.17

 

 

 

$

33.46

 

 

 

Oil (per barrel)

 

 

$

87.13

 

 

 

$

87.51

 

 

 

$

84.75

 

 

 

$

83.10

 

 

 

$

85.30

 

 

 

$

84.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes our Arkoma Basin and Barnett Shale operations, which were classified as held for sale and reported as discontinued operations.

 

 

Expenses per Mcfe (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating

 

 

$

0.52

 

 

 

$

0.48

 

 

 

$

0.51

 

 

 

$

0.51

 

 

 

$

0.51

 

 

 

$

0.50

 

 

 

Gathering, processing and transportation

 

 

$

1.02

 

 

 

$

1.06

 

 

 

$

1.06

 

 

 

$

1.04

 

 

 

$

1.05

 

 

 

$

1.09

 

 

 

Taxes other than income

 

 

$

0.24

 

 

 

$

0.33

 

 

 

$

0.22

 

 

 

$

0.19

 

 

 

$

0.24

 

 

 

$

0.20

 

 

 

Depreciation, depletion and amortization

 

 

$

1.84

 

 

 

$

1.92

 

 

 

$

1.90

 

 

 

$

1.91

 

 

 

$

1.89

 

 

 

$

1.80

 

 

 

General and administrative

 

 

$

0.58

 

 

 

$

0.53

 

 

 

$

0.55

 

 

 

$

0.60

 

 

 

$

0.57

 

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Excludes our Arkoma Basin and Barnett Shale operations, which were classified as held for sale and reported as discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WPX Energy, Inc.

 

International Segment

 

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

2012

(Dollars in millions)

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Year

 

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

 

$

4

 

 

$

4

 

 

$

4

 

 

$

4

 

 

$

16

 

 

$

4

 

 

 

 

Natural gas liquid sales

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

4

 

 

 

1

 

 

 

 

Oil and condensate sales

 

 

 

18

 

 

 

20

 

 

 

22

 

 

 

26

 

 

 

86

 

 

 

26

 

 

 

 

 

Total product revenues

 

 

 

23

 

 

 

25

 

 

 

27

 

 

 

31

 

 

 

106

 

 

 

31

 

 

 

Gas management

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Mark to market gains and losses and hedge ineffectiveness

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Other

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

4

 

 

 

-

 

 

 

 

 

Total revenues

 

 

 

24

 

 

 

26

 

 

 

28

 

 

 

32

 

 

 

110

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating

 

 

 

5

 

 

 

6

 

 

 

7

 

 

 

9

 

 

 

27

 

 

 

6

 

 

 

Gathering, processing and transportation

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Taxes other than income

 

 

 

3

 

 

 

6

 

 

 

6

 

 

 

6

 

 

 

21

 

 

 

5

 

 

 

Gas management, including charges for unutilized pipeline capacity

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

Exploration

 

 

 

1

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

3

 

 

 

5

 

 

 

Depreciation, depletion and amortization

 

 

 

5

 

 

 

5

 

 

 

6

 

 

 

6

 

 

 

22

 

 

 

6

 

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

General and administrative

 

 

 

3

 

 

 

2

 

 

 

3

 

 

 

4

 

 

 

12

 

 

 

3

 

 

 

Other-net

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

1

 

 

 

3

 

 

 

-

 

 

 

 

 

Total costs and expenses

 

 

 

18

 

 

 

20

 

 

 

23

 

 

 

27

 

 

 

88

 

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

6

 

 

 

6

 

 

 

5

 

 

 

5

 

 

 

22

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Interest capitalized

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Investment income and other

 

 

 

5

 

 

 

4

 

 

 

5

 

 

 

6

 

 

 

20

 

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

$

11

 

 

$

10

 

 

$

10

 

 

$

11

 

 

$

42

 

 

$

14

 

 

 

Summary of Net Production Volumes (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (MMcf)

 

 

 

1,826

 

 

 

1,940

 

 

 

1,726

 

 

 

1,896

 

 

 

7,389

 

 

 

1,737

 

Natural gas liquids (MBbls)

 

 

 

44

 

 

 

47

 

 

 

55

 

 

 

37

 

 

 

183

 

 

 

45

 

Oil (MBbls)

 

 

 

473

 

 

 

509

 

 

 

529

 

 

 

542

 

 

 

2,054

 

 

 

507

 

Combined equivalent volumes (MMcfe)(2)

 

 

 

4,926

 

 

 

5,280

 

 

 

5,231

 

 

 

5,373

 

 

 

20,810

 

 

 

5,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Reflects approximately 69 percent of Apco's production (which corresponds to our ownership interest in Apco) and other minor directly held interests.

 

(2)

Oil and natural gas liquids were converted to MMcfe using the ratio of one barrel of oil, condensate or natural gas liquids to six thousand cubic feet of natural gas.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WPX Energy, Inc.

Reconciliation of income (loss) from continuing operations attributable to WPX Energy, Inc. to Adjusted Income

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

2012

(Dollars in millions, except per share amounts)

 

 

1st Qtr

 

 

2nd Qtr

 

 

3rd Qtr

 

 

4th Qtr

 

 

Year

 

 

1st Qtr

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations attributable to WPX Energy, Inc. available to common stockholders

 

 

$

5

 

 

$

27

 

 

$

17

 

 

$

(209

)

 

 

$

(160

)

 

 

$

(41

)

 

Income (loss) from continuing operations - diluted earnings per share

 

 

$

0.03

 

 

$

0.13

 

 

$

0.09

 

 

$

(1.06

)

 

 

$

(0.81

)

 

 

$

(0.21

)

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairments

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

367

 

 

 

$

367

 

 

 

$

52

 

 

Total adjustments

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

367

 

 

 

$

367

 

 

 

$

52

 

 

Less tax effect for above items

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(134

)

 

 

$

(134

)

 

 

$

(20

)

 

Adjusted income (loss) from continuing operations available to common stockholders

 

 

$

5

 

 

$

27

 

 

$

17

 

 

$

24

 

 

 

$

73

 

 

 

$

(9

)

 

Adjusted diluted earnings (loss) per common share

 

 

$

0.03

 

 

$

0.13

 

 

$

0.09

 

 

$

0.12

 

 

 

$

0.37

 

 

 

$

(0.05

)

 

Weighted-average shares -diluted - millions (1)

 

 

 

197.1

 

 

 

197.1

 

 

 

197.1

 

 

 

197.1

 

 

 

 

197.1

 

 

 

 

198.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

For comparative purposes and to provide a more meaningful calculation for weighted average shares, we have assumed the amount of common stock issued at December 31, 2011 to be outstanding for all 2011 period presented.

 

 

 

1Q 2012 FINANCIAL STATEMENTS

 

WPX Energy, Inc.

Consolidated Statement of Operations

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months ended

 

 

 

 

March 31,

 

 

 

 

2012

 

 

2011

 

 

 

 

(Millions, except per share amounts)

Revenues:

 

 

 

 

 

 

 

Product revenues:

 

 

 

 

 

 

 

Natural gas sales

 

 

$

357

 

 

 

$

408

 

 

Natural gas liquid sales

 

 

 

93

 

 

 

 

85

 

 

Oil and condensate sales

 

 

 

106

 

 

 

 

52

 

 

Total product revenues

 

 

 

556

 

 

 

 

545

 

 

Gas management

 

 

 

337

 

 

 

 

408

 

 

Mark to market gains and losses and hedge ineffectiveness

 

 

 

14

 

 

 

 

2

 

 

Other

 

 

 

3

 

 

 

 

3

 

Total revenues

 

 

 

910

 

 

 

 

958

 

Cots and expenses:

 

 

 

 

 

 

 

Lease and facility operating

 

 

 

67

 

 

 

 

63

 

 

Gathering, processing and transportation

 

 

 

135

 

 

 

 

112

 

 

Taxes other than income

 

 

 

30

 

 

 

 

30

 

 

Gas management, including charges for unutilized pipeline capacity

 

 

 

355

 

 

 

 

417

 

 

Exploration

 

 

 

19

 

 

 

 

12

 

 

Depreciation, depletion and amortization

 

 

 

228

 

 

 

 

207

 

 

Impairment of costs of acquired unproved reserves

 

 

 

52

 

 

 

 

-

 

 

General and administrative

 

 

 

68

 

 

 

 

67

 

 

Other - net

 

 

 

5

 

 

 

 

1

 

Total costs and expenses

 

 

 

959

 

 

 

 

909

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

(49

)

 

 

 

49

 

Interest expense

 

 

 

(26

)

 

 

 

(49

)

Interest capitalized

 

 

 

2

 

 

 

 

4

 

Investment income and other

 

 

 

10

 

 

 

 

6

 

Income (loss) from continuing operations before income taxes

 

 

 

(63

)

 

 

 

10

 

Provision (benefit) for income taxes

 

 

 

(25

)

 

 

 

3

 

Income (loss) from continuing operations

 

 

 

(38

)

 

 

 

7

 

Loss from discontinued operations

 

 

 

(2

)

 

 

 

(8

)

Net loss

 

 

 

(40

)

 

 

 

(1

)

 

Less: Net income attributable to noncontrolling interests

 

 

 

3

 

 

 

 

2

 

Net loss attributable to WPX Energy

 

 

$

(43

)

 

 

$

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts attributable to WPX Energy, Inc.:

 

 

 

 

 

 

Basic and diluted earnings (loss) per common share:

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

 

$

(0.21

)

 

 

$

0.03

 

 

Loss from discontinued operations

 

 

 

(0.01

)

 

 

 

(0.05

)

 

Net loss

 

 

$

(0.22

)

 

 

$

(0.02

)

 

 

 

 

 

 

 

 

Weighted average shares (millions)

 

 

 

198.1

 

 

 

 

197.1

 

 

WPX Energy, Inc.

Consolidated Balance Sheet

(Unaudited)

 

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

December 31, 2011

ASSETS

 

 

(Dollars in millions, except per share amounts)

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

362

 

 

 

$

526

 

Accounts receivable net of allowance of $13 at March 31, 2012 and December 31, 2011

 

 

 

414

 

 

 

 

509

 

Derivative assets

 

 

 

516

 

 

 

 

506

 

Inventories

 

 

 

61

 

 

 

 

73

 

Other

 

 

 

331

 

 

 

 

60

 

Total current assets

 

 

 

1,684

 

 

 

 

1,674

 

Investments

 

 

 

132

 

 

 

 

125

 

Properties and equipment (successful efforts method of accounting)

 

 

 

12,500

 

 

 

 

12,199

 

Less: Accumulated depreciation, depletion and amortization

 

 

 

(4,211

)

 

 

 

(3,977

)

Properties and equipment, net

 

 

 

8,289

 

 

 

 

8,222

 

Derivative assets

 

 

 

22

 

 

 

 

10

 

Other noncurrent assets

 

 

 

142

 

 

 

 

401

 

Total assets

 

 

$

10,269

 

 

 

$

10,432

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

 

$

531

 

 

 

$

702

 

Accrued and other current liabilities

 

 

 

261

 

 

 

 

186

 

Deferred income taxes

 

 

 

118

 

 

 

 

116

 

Derivative liabilities

 

 

 

152

 

 

 

 

152

 

Total current liabilities

 

 

 

1,062

 

 

 

 

1,156

 

Deferred income taxes

 

 

 

1,516

 

 

 

 

1,556

 

Long-term debt

 

 

 

1,509

 

 

 

 

1,503

 

Derivative liabilities

 

 

 

31

 

 

 

 

7

 

Asset retirement obligations

 

 

 

291

 

 

 

 

283

 

Other noncurrent liabilities

 

 

 

151

 

 

 

 

168

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Preferred Stock (100 million shares authorized at $0.01 par value; no shares issued)

 

 

 

-

 

 

 

 

-

 

Common Stock (2 billion shares authorized at $0.01 par value; 198.7 million shares issued at March 31, 2012 and 197.1 million shares issued at December 31, 2011)

 

 

 

2

 

 

 

 

2

 

Additional paid-in-capital

 

 

 

5,449

 

 

 

 

5,457

 

Accumulated deficit

 

 

 

(43

)

 

 

 

-

 

Accumulated other comprehensive income

 

 

 

217

 

 

 

 

219

 

Total stockholders' equity

 

 

 

5,625

 

 

 

 

5,678

 

Noncontrolling interests in consolidated subsidiaries

 

 

 

84

 

 

 

 

81

 

Total equity

 

 

 

5,709

 

 

 

 

5,759

 

Total liabilities and equity

 

 

$

10,269

 

 

 

$

10,432

 

 

 

 

 

 

 

 

WPX Energy, Inc.

 

 

 

 

 

 

Consolidated Statement of Cash Flows

 

 

 

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
March 31,

 

 

 

 

 

2012

 

 

2011

 

 

 

 

 

(Millions)

Operating Activities

 

 

 

 

 

 

Net loss

 

 

$

(40

)

 

 

$

(1

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

 

235

 

 

 

 

218

 

 

Deferred income tax provision (benefit)

 

 

 

(37

)

 

 

 

(11

)

 

Provision for impairment of properties and equipment (including certain exploration expenses)

 

 

 

64

 

 

 

 

24

 

 

Amortization of stock-based awards

 

 

 

6

 

 

 

 

-

 

 

Cash provided (used) by operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

96

 

 

 

 

6

 

 

 

Other current assets

 

 

 

(9

)

 

 

 

-

 

 

 

Inventories

 

 

 

11

 

 

 

 

33

 

 

 

Margin deposits and customer margin deposits payable

 

 

 

(7

)

 

 

 

(19

)

 

 

Accounts payable

 

 

 

(110

)

 

 

 

(18

)

 

 

Accrued and other current liabilities

 

 

 

47

 

 

 

 

13

 

 

 

Changes in current and noncurrent derivative assets and liabilities

 

 

 

1

 

 

 

 

17

 

 

 

Other, including changes in other noncurrent assets and liabilities

 

 

 

(5

)

 

 

 

(22

)

Net cash provided by operating activities

 

 

 

252

 

 

 

 

240

 

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

Capital expenditures (a)

 

 

 

(428

)

 

 

 

(319

)

Deposit received from potential buyer of Barnett Shale and Arkoma assets

 

 

 

31

 

 

 

 

-

 

Purchases of investments

 

 

 

(2

)

 

 

 

(4

)

Other - net

 

 

 

4

 

 

 

 

(19

)

Net cash used in investing activities

 

 

 

(395

)

 

 

 

(342

)

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

Proceeds from common stock

 

 

 

1

 

 

 

 

-

 

Proceeds from long-term debt

 

 

 

6

 

 

 

 

-

 

Net increase in notes payable to Willliams

 

 

 

-

 

 

 

 

103

 

Net changes in Williams' net investment

 

 

 

-

 

 

 

 

2

 

Change in cash overdrafts

 

 

 

(28

)

 

 

 

-

 

Net cash provided by (used in) financing activities

 

 

 

(21

)

 

 

 

105

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

 

(164

)

 

 

 

3

 

Cash and cash equivalents at beginning of period

 

 

 

526

 

 

 

 

37

 

Cash and cash equivalents at end of period

 

 

$

362

 

 

 

$

40

 

 

 

 

 

 

 

 

 

 

(a) Increase to properties and equipment

 

 

 

 

 

 

Changes in related accounts payable

 

 

$

(369

)

 

 

$

(271

)

Capital expenditures

 

 

 

(59

)

 

 

 

(48

)

 

 

 

 

 

$

(428

)

 

 

$

(319

)

 

SOURCE: WPX Energy

WPX Energy
Media Contact:
Kelly Swan, 539-573-4944
or
Investor Contact:
David Sullivan, 539-573-9360



WPX: A Total Transformation

prev next
Our golf tournament at Page Belcher raised $22K for the Tulsa Area United Way. Sr. Reservoir Engineer Kinzie Beavers has led the event for us the past two years.
View Post
Texas & New Mexico will account for a third of the entire world’s growth in oil supply next year, according to the… https://twitter.com/i/web/status/1052254239647551490
View Tweet

An $8 billion turnaround story

Copyright 2018 WPX Energy

×