NEW YORK (TheStreet) -- Shares of WPX Energy (WPX) - Get Report are higher by 5.76% to $8.45 in mid-day trading on Tuesday, as some energy and related reverse Monday's losses as oil prices trade in the green today.
The price of the commodity rebounded slightly as investors await weekly inventory data from the Energy Information Administration.
Analysts are still pulling together their data but the expectation is that the EIA will report a decline in domestic crude inventories for the week ended July 24, The Wall Street Journal reports.
Crude oil (WTI) is up by 1.06% to $47.89 per barrel, while Brent crude is down slightly by 0.21% to $53.36 per barrel this afternoon, according to the CNBC.com index.
Oil prices have been declining for more than a year as the global market remains over supplied. Oil producers in the Middle East have staunchly refused to cut production in order to protect market share.
The possibility that with Western sanctions on Iran lifted, the country will begin exporting more oil into the already flooded market, has also pressured prices.
WPX Energy is a Tulsa, OK-based independent natural gas and oil exploration and production company.
Separately, TheStreet Ratings team rates WPX ENERGY INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WPX ENERGY INC (WPX) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 272.2% when compared to the same quarter one year prior, rising from $18.00 million to $67.00 million.
- The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that WPX's debt-to-equity ratio is low, the quick ratio, which is currently 0.53, displays a potential problem in covering short-term cash needs.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WPX ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $194.00 million or 5.82% when compared to the same quarter last year. Despite a decrease in cash flow WPX ENERGY INC is still fairing well by exceeding its industry average cash flow growth rate of -53.49%.
- You can view the full analysis from the report here: WPX Ratings Report