WPX Energy Reports 3Q 2016 Results And 2017 Guidance

WPX reported an unaudited third-quarter 2016 net loss attributable to common shareholders of $245 million, or a loss of $0.72 per share on a diluted basis, driven by a $238 million net loss on the divestment of certain transportation contracts. The company's adjusted net loss in the third quarter was $0.17 per share. A reconciliation accompanies this release.

During the third quarter, WPX unveiled its strategy to grow oil production and EBITDAX at a compound annual growth rate of 20-35 percent over the next four years. The projected growth is funded with operating cash flow, cash on-hand and assumes no incremental debt. The company's business strategy includes doubling oil production over the next two years and reducing leverage (the ratio of net debt to EBITDAX) to 2.0x to 2.5x in the same time span.

"WPX's forward story is compelling and achievable. Everything is in place to meet or exceed our objectives," said Rick Muncrief, president and chief executive officer. "All three of our assets are performing exceptionally well and are the platforms for prudent, disciplined growth."

In the Delaware Basin, the company added a third rig in October, just completed its first Wolfcamp X/Y well on bolt-on acreage it acquired during the third quarter and will break ground on the first phase of its crude oil gathering system this month.

Also in the Delaware Basin, WPX started a nine-well density test in September to explore a second landing zone in the Wolfcamp A interval. The goal is to better understand the upper and lower aspects of the interval, which may lead to opportunities to increase recoveries, drive development efficiencies, tighten spacing, limit future interference from offset wells and guide the next generation of stimulation designs.

In the Williston Basin, WPX resumed completions in August and added a second rig in late October. Three recent completions in the Wells unit had peak rates of 3,207 Boe/d, 3,011 Boe/d and 2,590 Boe/d during initial flowback. Production for all three wells was 83 percent oil.

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