NEW YORK (TheStreet) -- Shares of WPX Energy (WPX - Get Report) are continuing to rise, trading higher by 6.2% to $10.79 on heavy volume on Monday afternoon, after the company raised its oil production expectations for the year.
WPX Energy, a Tulsa-based independent oil and natural gas company, upped its oil production outlook to an average of 39 to 40 Mbbl/day, a 5% rise from its previous 37 to 39 Mbbl/day forecast.
The increase in production outlook for the year is due to better than expected well performance and an expected rise in drilling and completion activity in the Delaware and Williston basins during the second half of the year.
WPX Energy also announced this morning the pricing of an offering of 49,500,000 shares of common stock for total gross proceeds of $485 million.
"We forecast WPX could further grow production next year and keep leverage flattish at ~3.5x Net Debt/EBITDAX. We think today's announcements confirm our thesis, as WPX increased 2016 Williston activity and issued equity to facilitate this additional spend plus potential activity acceleration in 2017/2018 without adding more debt," Citigroup said in a note, according to Barron's.
So far today 37.67 million shares of WPX Energy have exchanged hands, as compared to the company's typical average of 11.87 million shares.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on WPX Energy stock. This is driven by several weaknesses, which TheStreet Ratings believes 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 it covers. 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.
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