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WPX ENERGY ANNOUNCES 2011 RESULTS

TULSA, Okla.--(BUSINESS WIRE)--Feb. 23, 2012-- WPX Energy (NYSE:WPX) today announced its unaudited financial and operating results for the fourth quarter and the year-ended Dec. 31, 2011. Highlights for the year include:

  • Revenue from domestic oil and NGL sales rose 87%
  • Oil production up 65%; NGL production up 25%; Gas production up 5%
  • Bakken Shale oil production more than tripled from 1Q to 4Q
  • Proved reserves increased 9% to a company record of nearly 5.3 Tcfe
  • Domestic production replaced at a rate of 188%
  • Proved, probable and possible (3P) reserves increased 7% to 18.5 Tcfe

2011 FINANCIAL RESULTS

WPX results for the year-ended Dec. 31, 2011, were impacted by non-cash impairment charges during the fourth quarter primarily due to a decline in forward natural gas prices.

Including these non-cash charges, WPX reported an unaudited net loss attributable to WPX Energy of $302 million in 2011, or a loss of $1.53 per share on a diluted basis. This compares with a net loss of $1,291 million, or a loss of $6.55 per share, on a diluted basis for 2010.

WPX’s adjusted EBITDAX was $1,330 million in 2011 – essentially equal to 2010. Adjusted EBITDAX is a non-GAAP measure. It is not a measure of net income or cash flows as determined by U.S. GAAP. A reconciliation of adjusted EBITDAX to net income (loss) is included in this announcement, as well as a definition.

The 2011 pre-tax, non-cash charges of approximately $547 million related to certain proved and unproved natural gas properties, primarily in the Powder River Basin and Barnett Shale.

WPX also reported $61 million in non-cash charges for dry-hole and leasehold write offs during third-quarter 2011 associated with an unsuccessful exploratory well in Columbia County, Pa., and associated acreage.

Results in 2010 were impacted by non-cash impairment charges of approximately $1 billion to goodwill and $678 million related to certain proved and unproved natural gas properties, primarily in the Barnett Shale.

For the fourth quarter of 2011, WPX reported an unaudited net loss of $338 million, or a loss of $1.72 per share on a diluted basis, compared with net income $12 million, or $0.06 per share on a diluted basis, for the fourth quarter of 2010.

MANAGEMENT PERSPECTIVE

“Our oil and NGL production and revenues reached an all-time high, reflecting our emphasis on the development of our assets in the Bakken Shale and the liquids-rich Piceance Basin,” CEO Ralph Hill said.

“And as we’ve announced, we’re decreasing our natural gas drilling in this commodity environment in favor of pursuing opportunities to grow our oil and NGL production even more.

“Currently, our Bakken Shale development has the highest incremental returns of any of our drilling programs.

“Overall, our operations, balance sheet, cash, liquidity and cash flow place us in a position of strength for 2012,” Hill added.

PRODUCTION

The company’s overall domestic and international production climbed nearly 10 percent in 2011 to an average of 1,399 MMcfe/d, excluding production attributable to discontinued operations in the Arkoma Basin.

The production increase was led by advances in oil and NGL production, which jumped 65 percent and 25 percent respectively in 2011.

Oil production in the company’s highest rate-of-return basin – the Bakken Shale – increased to approximately 6,400 barrels per day in the fourth quarter, which is more than triple first-quarter 2011 production of approximately 1,700 barrels per day. As of mid-February 2012, WPX’s oil production from the Bakken increased to 7,600 barrels per day.

NGL production in the liquids-rich Piceance Basin saw a notable increase as well, up 24 percent overall for the full year. In 2011, NGL production averaged 27.1 Mbbl/d, compared with 21.9 Mbbl/d in 2010.

Natural gas production in the Marcellus Shale rose significantly in late 2011 following the delayed startup of a third-party gathering system. Production in fourth-quarter 2011 rose to 27 MMcf/d, up 238 percent vs. 8 MMcf/d in the same period in 2010. As of mid-February 2012, Marcellus production increased to 59 MMcf/d.

Overall, total natural gas production increased 5 percent in 2011, from an average of 1,096 MMcf/d in 2010 to 1,153 MMcf/d in 2011.

The domestic net realized averaged price for natural gas in 2011 was $4.30 per Mcf vs. $4.57 in 2010. The domestic net realized averaged price for NGL in 2011 was $40.17 per barrel vs. $35.02 in 2010. The net realized averaged price for domestic oil in 2011 was $85.38 per barrel vs. $66.32 in 2010. All amounts are inclusive of hedges.

Average Daily Production

 

Full Year

 

 

 

4Q

 

 

 

 

2011

 

2010

 

Change

 

2011

 

2010

 

Change

Natural gas (MMcf/d)

 

 

 

 

 

 

 

 

 

 

 

 

Piceance Basin

 

679

 

631

 

8

%

 

686

 

682

 

1

%

Marcellus Shale

 

15

 

5

 

200

%

 

27

 

8

 

238

%

Powder River Basin

 

227

 

230

 

-1

%

 

229

 

214

 

7

%

San Juan Basin

 

135

 

141

 

-4

%

 

119

 

137

 

-13

%

Other

 

97

 

89

 

9

%

 

102

 

96

 

6

%

Subtotal (MMcf/d)

 

1,153

 

1,096

 

5

%

 

1,163

 

1,137

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

NGLs (Mbbl/d)

 

 

 

 

 

 

 

 

 

 

 

 

Piceance

 

27.1

 

21.9

 

24

%

 

27.1

 

24.2

 

12

%

Other

 

1.0

 

0.6

 

67

%

 

0.9

 

0.6

 

50

%

Subtotal (Mbbl/d)

 

28.1

 

22.5

 

25

%

 

28.0

 

24.8

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (Mbbl/d)

 

 

 

 

 

 

 

 

 

 

 

 

Bakken Shale

 

4.8

 

0.1

 

NM

 

 

6.4

 

0.2

 

NM

 

Piceance

 

2.3

 

2.1

 

10

%

 

2.2

 

2.4

 

-8

%

International

 

5.6

 

5.4

 

4

%

 

5.9

 

5.6

 

5

%

Other

 

0.2

 

0.2

 

0

%

 

0.3

 

0.3

 

0

%

Subtotal (Mbbl/d)

 

12.9

 

7.8

 

65

%

 

14.8

 

8.5

 

74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Production (MMcfe/d)

 

1,399

 

1,277

 

10

%

 

1,420

 

1,337

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

NM = a calculation that is not meaningful due to a percentage change in the thousands.

 

WPX has previously announced that it expects to grow its overall production by 4 percent in 2012 on an Mcf equivalent basis, driven by capital investments in oil and NGL production. Natural gas production is expected to remain flat in 2012.

EXPENSES

On a per-unit basis, WPX’s domestic lease operating expense (LOE) decreased 8 percent in 2011 to $0.55 per Mcfe vs. $0.60 per Mcfe in 2010. Actual charges were $268 million in 2011 vs. $267 million in 2010.

In 2011, WPX negotiated new fee-based contracts for liquids processing in the Piceance Basin. While these contributed to domestic gathering, processing and transportation charges of $1.02 per Mcfe in 2011 vs. $0.73 per Mcfe in 2010, they allow WPX to retain the vast majority of its NGL production in this basin.

Revenues associated with the new fee-based contracts more than offset the increase in fees. Actual charges for the domestic gathering, processing and transportation charges were $499 million in 2011 vs. $326 million in 2010.

Taxes other than income for domestic operations were $0.24 per Mcfe in 2011 and 2010. Actual charges were $119 million in 2011 vs. $109 million in 2010. The slight increase is primarily associated with greater oil and NGL volumes.

Domestic general and administrative expenses (G&A) totaled $0.56 per Mcfe in 2011 vs. $0.55 per Mcfe in 2010 due in part to the formation of two new asset teams who manage and operate WPX’s developments in the Bakken and Marcellus shales. Actual charges were $273 million in 2011 vs. $244 million in 2010.

Domestic depreciation, depletion and amortization expenses (DD&A) were $1.89 per Mcfe in 2011 vs. $1.92 per Mcfe in 2010. Actual charges were $927 million in 2011 vs. $858 million in 2010.

 

 

 

 

 

 

 

 

 

WPX Energy

Consolidated Statement of Operations

(Unaudited)

 

 

Twelve months ending

 

Fourth Quarter ending

 

 

December 31,

 

December 31,

 

 

 

 

 

 

 

 

 

 

 

2011

 

2010

 

2011

 

2010

 

 

(Dollars in millions)

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

Total revenues

 

3,988

 

 

4,034

 

 

992

 

 

960

 

Total costs before goodwill impairment and impairment of producing properties and costs of acquired unproved reserves

 

3,776

 

 

3,690

 

 

933

 

 

896

 

Impairments of goodwill, producing properties and costs of acquired unproved reserves

 

547

 

 

1,681

 

 

547

 

 

-

 

Operating income (loss)

 

(335

)

 

(1,337

)

 

(488

)

 

64

 

Interest expense

 

(117

)

 

(124

)

 

(20

)

 

(36

)

Interest capitalized

 

9

 

 

16

 

 

1

 

 

4

 

Investment income and other

 

26

 

 

21

 

 

7

 

 

6

 

Income (loss) from continuing operations before income taxes

 

(417

)

 

(1,424

)

 

(500

)

 

38

 

Provision (benefit) for income taxes

 

(145

)

 

(149

)

 

(174

)

 

18

 

Income (loss) from continuing operations

 

(272

)

 

(1,275

)

 

(326

)

 

20

 

Loss from discontinued operations

 

(20

)

 

(8

)

 

(9

)

 

(6

)

Net income (loss)

 

(292

)

 

(1,283

)

 

(335

)

 

14

 

Less: Net income attributable to noncontrolling interests

 

10

 

 

8

 

 

3

 

 

2

 

Net income (loss) attributable to WPX Energy

 

(302

)

 

(1,291

)

 

(338

)

 

12

 

 

 

 

 

 

 

 

 

 

Amounts attributable to WPX Energy, Inc.:

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

(282

)

 

(1,283

)

 

(329

)

 

18

 

Loss from discontinued operations

 

(20

)

 

(8

)

 

(9

)

 

(6

)

Net income (loss)

 

(302

)

 

(1,291

)

 

(338

)

 

12

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per common share

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

(1.43

)

 

(6.51

)

 

(1.67

)

 

0.09

 

Loss from discontinued operations

 

(0.10

)

 

(0.04

)

 

(0.05

)

 

(0.03

)

Net income (loss)

 

(1.53

)

 

(6.55

)

 

(1.72

)

 

0.06

 

Weighted-average shares (millions)

 

197.1

 

 

197.1

 

 

197.1

 

 

197.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDAX

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 had adjusted EBITDAX of $1,330 million for the year-ended Dec. 31, 2011 – essentially equal to adjusted EBITDAX in 2010.

For the quarter ended Dec. 31, 2011, WPX had adjusted EBITDAX of $340 million, up 5.5 percent from $322 million of adjusted EBITDAX for the fourth quarter of 2010.

EBITDAX (non-GAAP)

 

Year End

 

Fourth Quarter

 

 

2011

 

2010

 

2011

 

2010

 

 

millions

 

millions

 

millions

 

millions

Net income (loss)

 

$

(292

)

 

$

(1,283

)

 

$

(335

)

 

$

14

Interest expense

 

$

117

 

 

$

124

 

 

$

20

 

 

$

36

Provision (benefit) for income taxes

 

$

(145

)

 

$

(149

)

 

$

(174

)

 

$

18

Depreciation, depletion and amortization

 

$

949

 

 

$

875

 

 

$

246

 

 

$

220

Exploration expenses

 

$

134

 

 

$

73

 

 

$

27

 

 

$

28

EBITDAX

 

$

763

 

 

$

(360

)

 

$

(216

)

 

$

316

 

 

 

 

 

 

 

 

 

Impairments

 

$

547

 

 

$

1,681

 

 

$

547

 

 

$

0

Loss from discontinued operations

 

$

20

 

 

 

8

 

 

$

9

 

 

$

6

Adjusted EBITDAX

 

$

1,330

 

 

$

1,329

 

 

$

340

 

 

$

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WPX is forecasting full-year EBITDAX of approximately $1.2 billion for 2012. This assumes the impact of the company’s existing hedges, a $3 NYMEX natural gas price and a $99 per barrel oil price.

A $0.10 change in the price of natural gas equates to an estimated $20 million impact to EBITDAX. A $1 change in the price of oil equates to an estimated $5 million impact to EBITDAX, inclusive of the related impact to NGL.

CASH AND LIQUIDITY

In connection with the separation from Williams, WPX entered into a $1.5 billion revolving credit agreement that became effective in November. The facility remains undrawn.

In November, WPX also issued $1.5 billion of senior notes consisting of $1.1 billion at 6.0 percent due 2022 and $400 million at 5.25 percent due 2017. Approximately $981 million of these proceeds were distributed to Williams.

At Dec. 31, 2011, WPX had approximately $526 million in cash and cash equivalents – including $38 million for international operations – resulting in total liquidity of approximately $2 billion.

2011 DEVELOPMENT ACTIVITIES

In 2011, WPX participated in 1,241 gross (694 net) wells in the United States, of which only two were nonproductive. The number of gross wells refers to the number of wells completed during 2011.

Last year, WPX invested $1.461 billion in drilling and development, excluding costs for facilities construction. Approximately 84 percent of this capital was deployed in the Bakken Shale, Piceance Basin and Marcellus Shale.

WPX’s 2011 domestic drilling, finding and development cost for adding proved reserves was $1.57 per Mcfe, compared with $1.95 a year ago.

Highlights for each of the company’s areas are provided below. All volumes are reported on a net basis.

  • In the Bakken Shale, WPX grew its rig count from three to five in 2011; had an average of 5.2 Mboe/d of production; and completed 25 gross (20 net) wells.
  • In the Piceance Basin, WPX deployed 11 drilling rigs for the majority of 2011, including nine in the Piceance Valley and two in the Piceance Highlands. The company’s assets in the basin produced an average of 679 MMcf/d of gas production, along with an average of 29.4 Mbbl/d of NGL and oil. WPX participated in the completion of 385 gross (361 net) wells in the Piceance Basin.
  • In the Marcellus Shale, WPX deployed four rigs for the majority of 2011 and had an average of 15 MMcf/d of production. Production levels and the number of completions were hampered for much of 2011 awaiting the completion of a third-party gathering system. In the fourth quarter, production increased to 27 MMcf/d following the startup of that pipeline. WPX completed 38 gross (19 net) Marcellus Shale wells in 2011. At year-end, another 27 wells were awaiting completion.
  • In the Powder River Basin, WPX had an average of 227 MMcf/d of production and participated in the completion of 524 gross (226 net) wells. Approximately 400 of these wells were drilled in prior years and completed the dewatering process in 2011.
  • In the San Juan Basin, WPX deployed two rigs for the majority of 2011 and had an average of 136 MMcfe/d of production. WPX completed 56 gross (33 net) San Juan wells.
  • In WPX’s other areas, the company deployed one rig and had an average of 134 MMcfe/d of production from continuing operations. WPX’s other properties consist of the company’s holdings in the Barnett Shale, Green River Basin and its international interests. Arkoma production is excluded because the properties are classified as discontinued operations.

RESERVES

As of Dec. 31, 2011, WPX’s total proved reserves increased to a company high of nearly 5.3 trillion cubic feet equivalent – up approximately 9 percent vs. 2010.

Approximately 77 percent of WPX’s 2011 total proved reserves are natural gas and 23 percent natural gas liquids (NGL) and crude oil. At year-end 2010, natural gas accounted for 83 percent of the company’s reserves using an industry standard ratio of 6-to-1 to convert oil and NGL to natural gas equivalent.

Today, WPX also is reporting that its total proved, probable, and possible (3P) reserves increased 7 percent to approximately 18.5 Tcfe. The 3P figure consists of approximately 5.3 Bcfe in proved reserves, 7.7 Bcfe in probable reserves and 5.5 Bcfe in possible reserves.

3P Detail

 

Net Oil, MMBbl

 

Net NGL, MMBbl

 

Net Gas, Bcf

 

Net Reserves, Bcfe

 

 

 

 

 

 

 

 

 

Proved Reserves

 

63.3

 

135.3

 

4,073

 

5,265

Probable Reserves

 

74.3

 

195.1

 

6,130

 

7,746

Possible Reserves

 

85.4

 

176.0

 

3,904

 

5,472

Total 3P Reserves

 

223.0

 

506.4

 

14,107

 

18,483

 

 

 

 

 

 

 

 

 

At year-end 2010, WPX had 3P reserves of approximately 17.3 Tcfe after using an industry standard ratio of 6-to-1 to convert oil and NGL reserves to natural gas equivalent.

2012 CAPITAL INVESTMENT

As previously reported, 95 percent of WPX’s 2012 $1.2 billion domestic capital budget is focused on the company’s core areas in the Bakken Shale, Piceance Basin and Marcellus Shale, with approximately 65 percent of the budget designated for areas with oil and NGL production.

For 2012, WPX plans to add a sixth rig in the Bakken Shale at mid-year and deploy an average of five rigs in the Piceance Basin and three rigs in Susquehanna County in the Marcellus Shale.

In keeping with the company’s philosophy for capital discipline, this equates to a more than 40 percent decrease in the company’s rig count in the Piceance and Marcellus vs. the original plan for 2012 activity.

The company’s 2012 capital spending is expected to yield a 50-60 percent increase in domestic oil production and an 8 percent increase in NGL production.

TODAY’S CONFERENCE CALL

WPX management will discuss the results during a Live Meeting starting at 10:30 a.m. EST today. Participants can view the slides for the meeting via a link at www.wpxenergy.com.

To hear the audio for the conference, participants also will need to dial (888) 334-2993. The passcode is 4022996. International callers should dial (719) 325-2309 and use the same passcode.

Form 10-K

WPX plans to file its 2011 Form 10-K with the Securities and Exchange Commission next week. Once filed, the document will be available on both the SEC and WPX websites.

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 Piceance Basin, Bakken Shale and Marcellus Shale. The company also has domestic operations in the Powder River and San Juan basins and the Barnett Shale, 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.

WPX Energy, Inc.

Consolidated

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

2011

(Dollars in millions)

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

490

 

 

$

427

 

 

$

454

 

 

$

441

 

 

$

1,812

 

 

$

434

 

 

$

453

 

 

$

464

 

 

$

444

 

 

$

1,795

 

 

Natural gas liquid sales

 

 

71

 

 

 

68

 

 

 

61

 

 

 

85

 

 

 

285

 

 

 

86

 

 

 

105

 

 

 

110

 

 

 

107

 

 

 

408

 

 

Oil and condensate sales

 

 

26

 

 

 

32

 

 

 

31

 

 

 

39

 

 

 

128

 

 

 

52

 

 

 

84

 

 

 

86

 

 

 

93

 

 

 

315

 

 

Total product revenues

 

 

587

 

 

 

527

 

 

 

546

 

 

 

565

 

 

 

2,225

 

 

 

572

 

 

 

642

 

 

 

660

 

 

 

644

 

 

 

2,518

 

 

Gas management

 

 

556

 

 

 

366

 

 

 

435

 

 

 

385

 

 

 

1,742

 

 

 

408

 

 

 

337

 

 

 

347

 

 

 

336

 

 

 

1,428

 

 

Hedge ineffectiveness and mark to market gains and losses

 

 

9

 

 

 

-

 

 

 

16

 

 

 

2

 

 

 

27

 

 

 

2

 

 

 

6

 

 

 

12

 

 

 

9

 

 

 

29

 

 

Other

 

 

12

 

 

 

11

 

 

 

9

 

 

 

8

 

 

 

40

 

 

 

2

 

 

 

5

 

 

 

3

 

 

 

3

 

 

 

13

 

 

Total revenues

 

 

1,164

 

 

 

904

 

 

 

1,006

 

 

 

960

 

 

 

4,034

 

 

 

984

 

 

 

990

 

 

 

1,022

 

 

 

992

 

 

 

3,988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating expense

 

 

66

 

 

 

66

 

 

 

75

 

 

 

79

 

 

 

286

 

 

 

70

 

 

 

70

 

 

 

78

 

 

 

77

 

 

 

295

 

 

Gathering, processing and transportation

 

 

72

 

 

 

73

 

 

 

71

 

 

 

110

 

 

 

326

 

 

 

115

 

 

 

125

 

 

 

132

 

 

 

127

 

 

 

499

 

 

Taxes other than income

 

 

40

 

 

 

33

 

 

 

36

 

 

 

16

 

 

 

125

 

 

 

31

 

 

 

45

 

 

 

33

 

 

 

31

 

 

 

140

 

 

Gas management, including charges for unutilized pipeline capacity

 

 

558

 

 

 

376

 

 

 

451

 

 

 

386

 

 

 

1,771

 

 

 

417

 

 

 

345

 

 

 

360

 

 

 

351

 

 

 

1,473

 

 

Exploration

 

 

8

 

 

 

10

 

 

 

27

 

 

 

28

 

 

 

73

 

 

 

13

 

 

 

20

 

 

 

74

 

 

 

27

 

 

 

134

 

 

Depreciation, depletion and amortization

 

 

216

 

 

 

217

 

 

 

222

 

 

 

220

 

 

 

875

 

 

 

216

 

 

 

236

 

 

 

251

 

 

 

246

 

 

 

949

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

-

 

 

 

-

 

 

 

678

 

 

 

-

 

 

 

678

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

547

 

 

 

547

 

 

Goodwill impairment

 

 

-

 

 

 

-

 

 

 

1,003

 

 

 

-

 

 

 

1,003

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

General and administrative

 

 

61

 

 

 

61

 

 

 

61

 

 

 

70

 

 

 

253

 

 

 

70

 

 

 

65

 

 

 

73

 

 

 

77

 

 

 

285

 

 

Other-net

 

 

-

 

 

 

3

 

 

 

(9

)

 

 

(13

)

 

 

(19

)

 

 

3

 

 

 

2

 

 

 

(1

)

 

 

(3

)

 

 

1

 

 

Total costs and expenses

 

 

1,021

 

 

 

839

 

 

 

2,615

 

 

 

896

 

 

 

5,371

 

 

 

935

 

 

 

908

 

 

 

1,000

 

 

 

1,480

 

 

 

4,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

143

 

 

 

65

 

 

 

(1,609

)

 

 

64

 

 

 

(1,337

)

 

 

49

 

 

 

82

 

 

 

22

 

 

 

(488

)

 

 

(335

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(25

)

 

 

(25

)

 

 

(38

)

 

 

(36

)

 

 

(124

)

 

 

(49

)

 

 

(48

)

 

 

-

 

 

 

(20

)

 

 

(117

)

 

Interest capitalized

 

 

4

 

 

 

4

 

 

 

4

 

 

 

4

 

 

 

16

 

 

 

4

 

 

 

4

 

 

 

-

 

 

 

1

 

 

 

9

 

 

Investment income and other

 

 

5

 

 

 

6

 

 

 

4

 

 

 

6

 

 

 

21

 

 

 

6

 

 

 

6

 

 

 

7

 

 

 

7

 

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

127

 

 

$

50

 

 

$

(1,639

)

 

$

38

 

 

$

(1,424

)

 

$

10

 

 

$

44

 

 

$

29

 

 

$

(500

)

 

$

(417

)

 

Provision (benefit) for income taxes

 

$

44

 

 

$

18

 

 

$

(229

)

 

$

18

 

 

$

(149

)

 

$

3

 

 

$

16

 

 

$

10

 

 

$

(174

)

 

$

(145

)

 

Income (loss) from continuing operations

 

$

83

 

 

$

32

 

 

$

(1,410

)

 

$

20

 

 

$

(1,275

)

 

$

7

 

 

$

28

 

 

$

19

 

 

$

(326

)

 

$

(272

)

 

Loss from discontinued operations

 

$

-

 

 

$

(1

)

 

$

(1

)

 

$

(6

)

 

$

(8

)

 

$

(8

)

 

$

-

 

 

$

(3

)

 

$

(9

)

 

$

(20

)

 

Net income (loss)

 

$

83

 

 

$

31

 

 

$

(1,411

)

 

$

14

 

 

$

(1,283

)

 

$

(1

)

 

$

28

 

 

$

16

 

 

$

(335

)

 

$

(292

)

 

Less: Net income attributable to noncontrolling interests

 

$

2

 

 

$

2

 

 

$

2

 

 

$

2

 

 

$

8

 

 

$

2

 

 

$

3

 

 

$

2

 

 

$

3

 

 

$

10

 

 

Net income (loss) attributable to WPX Energy

 

$

81

 

 

$

29

 

 

$

(1,413

)

 

$

12

 

 

$

(1,291

)

 

$

(3

)

 

$

25

 

 

$

14

 

 

$

(338

)

 

$

(302

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDAX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation to Net Income (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

83

 

 

$

31

 

 

$

(1,411

)

 

$

14

 

 

$

(1,283

)

 

$

(1

)

 

$

28

 

 

$

16

 

 

$

(335

)

 

$

(292

)

 

Interest expense

 

 

25

 

 

 

25

 

 

 

38

 

 

 

36

 

 

 

124

 

 

 

49

 

 

 

48

 

 

 

-

 

 

 

20

 

 

 

117

 

 

Provision (benefit) for income taxes

 

 

44

 

 

 

18

 

 

 

(229

)

 

 

18

 

 

 

(149

)

 

 

3

 

 

 

16

 

 

 

10

 

 

 

(174

)

 

 

(145

)

 

Depreciation, depletion and amortization

 

 

216

 

 

 

217

 

 

 

222

 

 

 

220

 

 

 

875

 

 

 

216

 

 

 

236

 

 

 

251

 

 

 

246

 

 

 

949

 

 

Exploration expenses

 

 

8

 

 

 

10

 

 

 

27

 

 

 

28

 

 

 

73

 

 

 

13

 

 

 

20

 

 

 

74

 

 

 

27

 

 

 

134

 

 

EBITDAX

 

 

376

 

 

 

301

 

 

 

(1,353

)

 

 

316

 

 

 

(360

)

 

 

280

 

 

 

348

 

 

 

351

 

 

 

(216

)

 

 

763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairments of goodwill, producing properties and cost of acquired unproved reserves

 

 

-

 

 

 

-

 

 

 

1,681

 

 

 

-

 

 

 

1,681

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

547

 

 

 

547

 

 

Loss from discontinued operations

 

 

-

 

 

 

1

 

 

 

1

 

 

 

6

 

 

 

8

 

 

 

8

 

 

 

-

 

 

 

3

 

 

 

9

 

 

 

20

 

 

Adjusted EBITDAX

 

$

376

 

 

$

302

 

 

$

329

 

 

$

322

 

 

$

1,329

 

 

$

288

 

 

$

348

 

 

$

354

 

 

$

340

 

 

$

1,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WPX Energy, Inc.

Domestic Segment

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

2011

(Dollars in millions)

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

486

 

 

$

424

 

 

$

451

 

 

$

436

 

 

$

1,797

 

 

$

430

 

 

$

449

 

 

$

460

 

 

$

440

 

 

$

1,779

 

 

Natural gas liquid sales

 

 

70

 

 

 

67

 

 

 

60

 

 

 

85

 

 

 

282

 

 

 

85

 

 

 

104

 

 

 

109

 

 

 

106

 

 

 

404

 

 

Oil and condensate sales

 

 

11

 

 

 

14

 

 

 

13

 

 

 

19

 

 

 

57

 

 

 

34

 

 

 

64

 

 

 

64

 

 

 

67

 

 

 

229

 

 

Total product revenues

 

 

567

 

 

 

505

 

 

 

524

 

 

 

540

 

 

 

2,136

 

 

 

549

 

 

 

617

 

 

 

633

 

 

 

613

 

 

 

2,412

 

 

Gas management

 

 

556

 

 

 

366

 

 

 

435

 

 

 

385

 

 

 

1,742

 

 

 

408

 

 

 

337

 

 

 

347

 

 

 

336

 

 

 

1,428

 

 

Hedge ineffectiveness and mark to market gains and losses

 

 

9

 

 

 

-

 

 

 

16

 

 

 

2

 

 

 

27

 

 

 

2

 

 

 

6

 

 

 

12

 

 

 

9

 

 

 

29

 

 

Other

 

 

12

 

 

 

11

 

 

 

9

 

 

 

8

 

 

 

40

 

 

 

1

 

 

 

4

 

 

 

2

 

 

 

2

 

 

 

9

 

 

Total revenues

 

 

1,144

 

 

 

882

 

 

 

984

 

 

 

935

 

 

 

3,945

 

 

 

960

 

 

 

964

 

 

 

994

 

 

 

960

 

 

 

3,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating expense

 

 

63

 

 

 

61

 

 

 

70

 

 

 

73

 

 

 

267

 

 

 

65

 

 

 

64

 

 

 

71

 

 

 

68

 

 

 

268

 

 

Gathering, processing and transportation

 

 

72

 

 

 

73

 

 

 

71

 

 

 

110

 

 

 

326

 

 

 

115

 

 

 

125

 

 

 

132

 

 

 

127

 

 

 

499

 

 

Taxes other than income

 

 

37

 

 

 

29

 

 

 

32

 

 

 

11

 

 

 

109

 

 

 

28

 

 

 

39

 

 

 

27

 

 

 

25

 

 

 

119

 

 

Gas management, including charges for unutilized pipeline capacity

 

 

558

 

 

 

376

 

 

 

451

 

 

 

386

 

 

 

1,771

 

 

 

417

 

 

 

345

 

 

 

360

 

 

 

351

 

 

 

1,473

 

 

Exploration

 

 

4

 

 

 

8

 

 

 

27

 

 

 

28

 

 

 

67

 

 

 

12

 

 

 

19

 

 

 

74

 

 

 

26

 

 

 

131

 

 

Depreciation, depletion and amortization

 

 

212

 

 

 

213

 

 

 

218

 

 

 

215

 

 

 

858

 

 

 

211

 

 

 

231

 

 

 

245

 

 

 

240

 

 

 

927

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

-

 

 

-

 

 

 

678

 

 

 

-

 

 

 

678

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

547

 

 

 

547

 

 

Goodwill impairment

 

 

-

 

 

-

 

 

 

1,003

 

 

 

-

 

 

 

1,003

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

General and administrative, including Williams

 

 

59

 

 

 

59

 

 

 

58

 

 

 

68

 

 

 

244

 

 

 

67

 

 

 

63

 

 

 

70

 

 

 

73

 

 

 

273

 

 

Other-net

 

 

-

 

 

 

3

 

 

 

(9

)

 

 

(13

)

 

 

(19

)

 

 

2

 

 

 

2

 

 

 

(2

)

 

 

(4

)

 

 

(2

)

 

Total costs and expenses

 

 

1,005

 

 

 

822

 

 

 

2,599

 

 

 

878

 

 

 

5,304

 

 

 

917

 

 

 

888

 

 

 

977

 

 

 

1,453

 

 

 

4,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

139

 

 

 

60

 

 

 

(1,615

)

 

 

57

 

 

 

(1,359

)

 

 

43

 

 

 

76

 

 

 

17

 

 

 

(493

)

 

 

(357

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(25

)

 

 

(25

)

 

 

(38

)

 

 

(36

)

 

 

(124

)

 

 

(49

)

 

 

(48

)

 

 

-

 

 

 

(20

)

 

 

(117

)

 

Interest capitalized

 

 

4

 

 

 

4

 

 

 

4

 

 

 

4

 

 

 

16

 

 

 

4

 

 

 

4

 

 

 

-

 

 

 

1

 

 

 

9

 

 

Investment income and other

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

4

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

1

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

119

 

 

$

40

 

 

$

(1,648

)

 

$

26

 

 

$

(1,463

)

 

$

(1

)

 

$

34

 

 

$

19

 

 

$

(511

)

 

$

(459

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Production Volumes (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (mmcf)

 

 

94,641

 

 

 

95,954

 

 

 

99,358

 

 

 

102,822

 

 

 

392,775

 

 

 

98,185

 

 

 

101,481

 

 

 

108,734

 

 

 

105,120

 

 

 

413,520

 

 

Natural gas liquids (MBbls)

 

 

1,813

 

 

 

2,058

 

 

 

1,945

 

 

 

2,240

 

 

 

8,056

 

 

 

2,426

 

 

 

2,527

 

 

 

2,567

 

 

 

2,539

 

 

 

10,059

 

 

Oil (MBbls)

 

 

167

 

 

 

204

 

 

 

222

 

 

 

264

 

 

 

857

 

 

 

392

 

 

 

720

 

 

 

743

 

 

 

822

 

 

 

2,677

 

 

Combined equivalent volumes (mmcfe) (2)

 

 

106,523

 

 

 

109,526

 

 

 

112,357

 

 

 

117,847

 

 

 

446,253

 

 

 

115,089

 

 

 

120,963

 

 

 

128,591

 

 

 

125,285

 

 

 

489,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes production from our Arkoma Basin operations which are reported as discontinued operations and comprised less than one percent of our total production.

 

(2) Amounts for 2010 have been recalculated using a conversion ratio for our NGLs of 6 to 1 as these were previously reported in natural gas volumes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas (per mmcf)

 

 

5.14

 

 

 

4.42

 

 

 

4.54

 

 

 

4.24

 

 

 

4.57

 

 

 

4.38

 

 

 

4.42

 

 

 

4.23

 

 

 

4.19

 

 

 

4.30

 

 

Natural gas liquids (per bbl)

 

 

38.61

 

 

 

32.56

 

 

 

30.85

 

 

 

37.95

 

 

 

35.02

 

 

 

35.04

 

 

 

41.16

 

 

 

42.46

 

 

 

41.75

 

 

 

40.17

 

 

Oil (per bbl)

 

 

65.87

 

 

 

68.63

 

 

 

58.56

 

 

 

71.97

 

 

 

66.32

 

 

 

86.73

 

 

 

88.89

 

 

 

86.14

 

 

 

81.51

 

 

 

85.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes our Arkoma Basin operations, which are reported as discontinued operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses per Mmcfe (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating expense

 

 

0.59

 

 

 

0.56

 

 

 

0.62

 

 

 

0.62

 

 

 

0.60

 

 

 

0.56

 

 

 

0.53

 

 

 

0.55

 

 

 

0.54

 

 

 

0.55

 

 

Gathering, processing and transportation

 

 

0.68

 

 

 

0.67

 

 

 

0.63

 

 

 

0.93

 

 

 

0.73

 

 

 

1.00

 

 

 

1.03

 

 

 

1.03

 

 

 

1.01

 

 

 

1.02

 

 

Taxes other than income

 

 

0.35

 

 

 

0.26

 

 

 

0.28

 

 

 

0.09

 

 

 

0.24

 

 

 

0.24

 

 

 

0.32

 

 

 

0.21

 

 

 

0.20

 

 

 

0.24

 

 

Depreciation, depletion and amortization

 

 

1.99

 

 

 

1.94

 

 

 

1.94

 

 

 

1.82

 

 

 

1.92

 

 

 

1.83

 

 

 

1.91

 

 

 

1.91

 

 

 

1.92

 

 

 

1.89

 

 

General and administrative

 

 

0.55

 

 

 

0.54

 

 

 

0.52

 

 

 

0.58

 

 

 

0.55

 

 

 

0.58

 

 

 

0.52

 

 

 

0.54

 

 

 

0.58

 

 

 

0.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes our Arkoma Basin operations, which were classified as held for sale and reported as discontinued operations.

 

 

 

 

 

 

 

 

WPX Energy, Inc.

International Segment

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2010

 

2011

 

(Dollars in millions)

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

Year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

4

 

$

3

 

$

3

 

$

5

 

$

15

 

$

4

 

$

4

 

$

4

 

$

4

 

$

16

 

Natural gas liquid sales

 

 

1

 

 

1

 

 

1

 

 

-

 

 

3

 

 

1

 

 

1

 

 

1

 

 

1

 

 

4

 

Oil and condensate sales

 

 

15

 

 

18

 

 

18

 

 

20

 

 

71

 

 

18

 

 

20

 

 

22

 

 

26

 

 

86

 

Total product revenues

 

 

20

 

 

22

 

 

22

 

 

25

 

 

89

 

 

23

 

 

25

 

 

27

 

 

31

 

 

106

 

Gas management

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Hedge ineffectiveness and mark to market gains and losses

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Other

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

1

 

 

1

 

 

1

 

 

1

 

 

4

 

Total revenues

 

 

20

 

 

22

 

 

22

 

 

25

 

 

89

 

 

24

 

 

26

 

 

28

 

 

32

 

 

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease and facility operating expense

 

 

3

 

 

5

 

 

5

 

 

6

 

 

19

 

 

5

 

 

6

 

 

7

 

 

9

 

 

27

 

Gathering, processing and transportation

 

 

-

 

-

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Taxes other than income

 

 

3

 

 

4

 

 

4

 

 

5

 

 

16

 

 

3

 

 

6

 

 

6

 

 

6

 

 

21

 

Gas management (including charges for unutilized pipeline capacity)

 

 

 

 

 

 

 

 

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Exploration

 

 

4

 

 

2

 

 

-

 

 

-

 

 

6

 

 

1

 

 

1

 

 

-

 

 

1

 

 

3

 

Depreciation, depletion and amortization

 

 

4

 

 

4

 

 

4

 

 

5

 

 

17

 

 

5

 

 

5

 

 

6

 

 

6

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of producing properties and costs of acquired unproved reserves

 

 

-

 

-

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Goodwill impairment

 

 

-

 

-

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

General and administrative

 

 

2

 

 

2

 

 

3

 

 

2

 

 

9

 

 

3

 

 

2

 

 

3

 

 

4

 

 

12

 

Other-net

 

-

 

-

 

-

 

-

 

 

-

 

 

1

 

 

-

 

 

1

 

 

1

 

 

3

 

Total costs and expenses

 

 

16

 

 

17

 

 

16

 

 

18

 

 

67

 

 

18

 

 

20

 

 

23

 

 

27

 

 

88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

4

 

 

5

 

 

6

 

 

7

 

 

22

 

 

6

 

 

6

 

 

5

 

 

5

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Interest capitalized

 

 

-

 

-

 

-

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Investment income and other

 

 

4

 

 

5

 

 

3

 

 

5

 

 

17

 

 

5

 

 

4

 

 

5

 

 

6

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

$

8

 

$

10

 

$

9

 

$

12

 

$

39

 

$

11

 

$

10

 

$

10

 

$

11

 

$

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Production Volumes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (mmcfe) (1) (2)

 

 

4,773

 

 

5,116

 

 

4,895

 

 

5,155

 

 

19,940

 

 

4,926

 

 

5,280

 

 

5,231

 

 

5,373

 

 

20,810

 

(1) Converted using 6 to 1 conversion rate for NGL and Oil.

 

(2) Reflects approximately 69 percent of Apco's production.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: WPX Energy

WPX Energy
Media Contact:
Kelly Swan, 918-573-4944
or
Investor Contact:
David Sullivan, 918-573-9360



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