NEW YORK (TheStreet) --Shares of WPX Energy (WPX) - Get WPX Energy, Inc. Report are rising by 2.18% to $8.89 in mid-morning trading on Tuesday, as the energy sector gets a boost from the rally in oil prices, spurred by geopolitical concerns in the Middle East.
A softer dollar and reports that Turkey has shot down a Russian jet over Syria is giving oil prices a boost this morning.
Crude oil (WTI) is up by 2.08% to $42.62 per barrel this morning and Brent crude is gaining by 2.05% to $45.75 per barrel, according to the CNBC.com index.
WPX Energy is a Tulsa-based natural gas and oil exploration and production company engaged in the exploitation and development of unconventional properties.
Authorities in Turkey did not give the nationality of the jet, the Wall Street Journal reports, however Russia announced separately that one of its jets had gone down in the region. This is adding to concerns regarding the continuing conflict in the Middle East, the most abundant oil producing regions in the world.
Also adding to the rise in oil prices is comments by Saudi Arabia that the country is ready to cooperate with other producers in order to stabilize prices, the Journal noted.
Separately, TheStreet Ratings team rates WPX ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate WPX ENERGY INC (WPX) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 471.0% when compared to the same quarter one year ago, falling from $62.00 million to -$230.00 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 291.30% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- WPX's debt-to-equity ratio of 0.67 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that WPX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity.
- Net operating cash flow has decreased to $199.00 million or 23.16% when compared to the same quarter last year. Despite a decrease in cash flow of 23.16%, WPX ENERGY INC is in line with the industry average cash flow growth rate of -25.83%.
- WPX ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, WPX ENERGY INC turned its bottom line around by earning $0.62 versus -$5.43 in the prior year. For the next year, the market is expecting a contraction of 154.0% in earnings (-$0.34 versus $0.62).
- You can view the full analysis from the report here: WPX
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.