WPX Energy (NYSE:WPX) today announced its unaudited operating and financial results for the third-quarter of 2012. Recent highlights include:
- 3Q Bakken oil production increased 66% to 9,600 barrels per day from 5,800 a year ago
- October Bakken oil production surpassed 10,500 barrels per day
- WPX on track to hold Bakken acreage by production; initial multi-well pad drilling beginning
- Natural gas production in the Marcellus Shale rose four-fold to 65 MMcf/d vs. 15 MMcf/d a year ago
- Liquidity remains strong at $1.7 billion
- Lower 3Q natural gas production vs. a year ago a result of fewer wells drilled due to capital discipline
WPX reported an unaudited net loss attributable to WPX Energy of $64 million for third-quarter 2012, or a loss of $0.32 per share on a fully diluted basis, compared with net income of $14 million, or $0.07 per share, in third-quarter 2011.
The decrease in third-quarter 2012 was driven primarily by lower natural gas and NGL commodity prices vs. the 2011 period. Revenues in the 2012 period – not including gas management activities – declined 24 percent vs. third-quarter 2011, driven by significantly lower net realized average prices for natural gas and NGL production.Third-quarter 2012 results also were impacted by approximately $22 million in net losses on derivatives not designated as hedges, compared with $12 million in net gains in third-quarter 2011. Excluding unrealized mark-to-market gains (losses), WPX had an adjusted loss from continuing operations of $47 million, or a loss of $0.23 per share on a diluted basis, for third-quarter 2012, compared with adjusted income from continuing operations of $14 million, or $0.07 per share on a diluted basis, for the same period in 2011. A reconciliation is included in the statements that accompany this press release.