Independent oil & gas operator
WPX Energy Inc.
) reported earnings of 6 cents per share in the second quarter,
which convincingly beat the Zacks Consensus Estimate of a loss of
10 cents by 160%. In the prior-year quarter, the company had
reported a net loss of 22 cents per share.
The strong performance of WPX Energy in the reported quarter was
primarily attributable to a 57% increase in domestic oil
Wpx Energy Inc - Earnings Surprise |
On a GAAP basis, the company reported a loss of 66 cents per
share versus earnings of 9 cents per share in the year-ago quarter.
The difference between GAAP and operating earnings in the reported
quarter was due to a loss of 61 cents associated with the sale of
working interests in certain Piceance Basin natural gas wells and
domestic exploratory well costs and leasehold expenses of 11 cents.
WPX Energy's quarterly revenues of $814 million surpassed the Zacks
Consensus Estimate of $745 million by 9.3%. Total revenues were
marginally lower than the year-ago figure of $815 million.
Highlight of the Release
Total average daily production in the second quarter 2014 was 1,249
million cubic feet equivalent per day (MMcfe/d), down 1.0% from
1,262 MMcfe/d in the year-ago quarter. However, total production in
the reported quarter exceeded the company's guidance of 1,183-1,195
MMcfe/d on the back of robust domestic oil production. Domestic oil
production was driven by higher volumes in the Williston Basin,
which grew 53% year over year.
Consolidated natural gas production of 965 million cubic feet per
day (MMcf/d) in second-quarter 2014 exceeded the company's guidance
of 918-925 MMcf/d. Natural gas liquids (NGL) production of 18.3
thousand barrels per day (Mbbl/d) was in line with the low end of
WPX's guidance range of 18.3-18.7 Mbbl/d.
Realized prices of oil, natural gas and natural gas liquids were
higher than the comparable prior-year period. The realized price of
oil was $89.24 per barrel, up 1.7% year over year. The realized
price of natural gas was $3.62 per thousand cubic feet (Mcf), up
4.9% year over year. The realized price of natural gas liquids was
$33.58 per barrel, up 11.1%.
Total expenses in the reported quarter were $993 million, up nearly
30% year over year.
Interest expenses in the reported quarter were $28 million, in line
with the year-ago quarter.
Taking into account robust second quarter 2014 oil production, WPX
Energy has raised its 2014 total production guidance on an
equivalent basis to 1,209-1,256 MMcfe/d from the previous
projection of 1,203 MMcfe/d-1,217 MMcfe/d.
The revised guidance takes into account the impact of sale of a
portion of the company's working interest in the Piceance Basin and
a higher growth rate for domestic oil production.
Other Company Releases
EOG Resources Inc.
) posted net earnings of $1.45 per share in second quarter 2014,
surpassing the Zacks Consensus Estimate of $1.36 by 6.6%.
) posted earnings of 81 cents per share in second quarter 2014,
surpassing the Zacks Consensus Estimate by 1.3%.
Pioneer Natural Resources Co.
) posted earnings of $1.36 per share in second quarter 2014,
surpassing the Zacks Consensus Estimate by 7.1%.
WPX Energy beat expectations significantly in the second quarter,
thanks to higher domestic oil production as well as realized
WPX Energy made capital investments of $728 million in the first
half of 2014 and is on course to meet its target of $1.56 billion
to $1.64 billion for 2014. The company is making systematic
investments to develop its Williston, Piceance and San Juan Gallup
assets. The company has started to realize the benefits of its
investments in these reserve rich assets.
WPX Energy currently holds a Zacks Rank #1 (Strong Buy).
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