Independent oil & gas operator WPX Energy Inc. (WPX) reported loss of 2 cents per share in the third quarter 2014, lagging the Zacks Consensus Estimate earnings of 4 cents. However, the loss in the reported quarter, was much narrower than the loss of 41 cents incurred by the company in third quarter 2013.
On a GAAP basis, the company reported earnings of 30 cents per share as against a loss of 57 cents per share in the year-ago quarter.
Total Revenue
WPX Energy’s quarterly revenues of $794 million surpassed the Zacks Consensus Estimate of $732 million by 8.5%. Total revenues were also higher than the year-ago figure of $616 million by 28.9%.
Production and Realized Price
Total average daily production in the third quarter 2014 was 1,065 million cubic feet equivalent per day (MMcfe/d), down 2.6% from 1,094 MMcfe/d in the year-ago quarter. The company registered a 9% and 13% year-over-year decline in natural gas and natural gas liquids production respectively. However, a 45% year-over-year improvement in oil production offset most of the overall decline .
Realized prices of natural gas and natural gas liquids were higher than the comparable prior-year period. The realized price of natural gas was $2.92 per thousand cubic feet (Mcf), up 6.2% year over year. The realized price of natural gas liquids was $33.64 per barrel, up 7.8%.
However, the realized price of oil was down substantially from the year-ago quarter. The realized price of oil was $84.11 per barrel, down 14.1% year over year
Highlights of the Release
Total expenses in the reported quarter were $680 million, down nearly 6.8% year over year.
Interest expenses in the reported quarter were $31 million, 10.7% higher than the year-ago quarter.
Guidance
WPX Energy expects 2014 total production in the range of 1,002–1,038 MMcfe/d.
Other Company Releases
Anadarko Petroleum Corp. (APC) reported third-quarter 2014 adjusted earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.30 by 10.8%
Midstates Petroleum Co. (MPO) posted net earnings of 29 cents per share in third-quarter 2014, surpassing the Zacks Consensus Estimate of 8 cents by 262.5%.
Devon Energy Corp. (DVN) reported third-quarter 2014 adjusted earnings per share of $1.34, surpassing the Zacks Consensus Estimate of $1.27 by 5.5%.
Our View
WPX Energy is on course to meet its capital investment target of $1.53 billion to $1.62 billion for 2014. The company is making systematic investments to develop its reserve rich Williston, Piceance and San Juan Gallup assets.
WPX Energy currently holds a Zacks Rank #3 (Hold).
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