WPX Energy (WPX) Stock Drops on Lower Oil Prices
NEW YORK (TheStreet) -- Shares of WPX Energy (WPX) - Get Report are falling 4.3% to $10.01 midday Wednesday as oil prices slump.
Crude oil (WTI) is down 4.32% to $44.78 per barrel and Brent crude is tumbling 4.5% to $46.29 per barrel this afternoon.
Oil prices are sliding this afternoon after the U.S. government surprised the market with bearish inventory data, which added to worries over the global oil glut, Reuters reports.
U.S. crude oil stocks declined less than projected last week, according to the Energy Information Administration said.
Additionally, distillate inventories climbed the most since January and gasoline posted a build, which was unexpected amid summer driving season, Reuters noted.
The EIA said crude inventories dropped 2.5 million barrels last week, below the 3-million-barrel decline predicted by analysts.
Distillate inventories increased 4.1 million barrels compared to estimates for a 256,000-barrel rise.
"A surprising build in gasoline in the peak of U.S. driving season and a very large build in heating oil will set the tone for lower prices as we go forward," Tariq Zahir, a trader at Tyche Capital Advisors, told Reuters.
WPX Energy is a Tulsa, OK-based oil and natural gas exploration and production company.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WPX