Continuing Long-Term Strategy to Expand Margins
4Q 2014 Oil Volumes Jumped 25% vs. 3Q 2014
As part of its long-term strategy, WPX will continue to diversify its historically gas-weighted portfolio. WPX’s oil production grew 56 percent in 2014 year over year, far exceeding its plan for 40 percent growth last year.
In fourth-quarter 2014, oil volumes rose 6,500 barrels per day to approximately 32,300 barrels per day, accounting for nearly 20 percent of the company’s equivalent production. This marked a 25 percent sequential-quarter increase over third-quarter 2014 oil production of 25,800 barrels per day.
The company’s 2015 capital plan is roughly half the amount of its capital plan last year, excluding acquisition capital.
“Our capital plan is prudent, disciplined and consistent with our
long-term focus,” said
“At the same time, we have financial and operational flexibility because of how well we executed over the past year, completing asset sales, increasing oil volumes and heavily hedging our 2015 production at very favorable prices.
“We’ll stay primed to accelerate development, even as we take appropriate steps to respond to current prices,” Muncrief added.
WPX expects its oil production to climb again in 2015. The company is targeting 15 to 20 percent oil growth this year even as it decreases capital spending and builds an inventory of wells awaiting completion for when commodity prices are more favorable.
The company’s expected increase in oil production this year will be offset, in part, by an expected decline of about 4 percent in overall equivalent production from reduced development activity – normalized for divestitures over the past year.
WPX has hedged approximately three-fourths of its anticipated 2015
natural gas production at a weighted average price of
WPX also recently generated nearly
The company’s 2015 capital program includes
WPX started the year with five rigs in the
WPX started the year with three rigs in the
WPX plans to deploy three rigs in the
“Head winds bring challenges and opportunities. We’re ready for both. It’s why we have a long-term plan to reshape WPX and grow our margins and cash flow. Margin expansion comes from diversifying our production and right-sizing our cost structure,” Muncrief added.
The company’s 2015 guidance and plans are based on NYMEX commodity price
WPX anticipates that the cash expenditures it reports in 2015 will
WPX Energy develops and operates oil and gas producing properties
in North Dakota, New Mexico and
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
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.
WPX Energy Inc.
Kelly Swan, 539-573-4944
David Sullivan, 539-573-9360