WPX expects 4Q oil volumes of 109-111 Mbbl/d. This also raises the full-year 2019 outlook for oil volumes to 102-104 Mbbl/d, up from 101-103 Mbbl/d.3Q PRESS RELEASE
Two 3Q Third Bone Spring wells on the CBR 6-7 pad had 60-day cumulative production of nearly 365,000 Boe. Both hit a 24-hour IP high exceeding 4,300 Boe/d (59% oil).3Q HIGHLIGHTS
WPX is forecasting stronger fourth quarter oil volumes than originally detailed in its quarter-to-quarter guide for 2019.
This momentum also is driving the anticipated 2019 exit rate higher with no additional capital allocation. WPX originally forecast 5-10 percent growth vs. the 2018 exit rate. WPX now expects this year’s exit rate to grow 15 percent vs. a year ago.
WPX expects fourth-quarter oil volumes of 109-111 Mbbl/d. This also raises WPX’s outlook for full-year 2019 oil volumes to 102-104 Mbbl/d, up from its most recent estimate of 101-103 Mbbl/d.
WPX now expects full-year total production of 162-167 Mboe/d in 2019, up from its most recent estimate of 160-165 Mboe/d.
With one quarter remaining in the year, WPX’s tightened the range for its 2019 total capital development plan to $1,125-$1,250 million. The midpoint remains unchanged from the previous estimate of $1,100-$1,275 million.
Total capital spending in the third quarter was $264 million, predominantly from $233 million in D&C activity for operated wells and $22 million for midstream infrastructure.
In August, WPX announced a plan to repurchase up to $400 million of its shares over the next 24 months. To date, the company has since repurchased $58 million of its common stock at an average price of $10.16 per share, retiring 5.7 million shares.
During the third quarter, WPX completed tender offers repurchasing $456 million of its outstanding 6.00 percent notes due in 2022 and $94 million of its 8.25 percent notes due in 2023 through a public offering for 5.25 percent notes due in 2027.
These actions reduced WPX’s weighted average interest rate for long-term debt from 6.24 percent to 5.93 percent, effectively lowering its annual interest expense by approximately $4 million going forward.
Oil & NGL volumes accounted for 78% of third-quarter 2019 total production of 173.4 Mboe/d. Oil volumes averaged 108,600 bbl/d during the quarter.
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