WPX Energy, Inc.NYSE
WPX Energy: Transformation In Progress
WPX Energy: What To Expect In 2016
Richard Zeits • 10 Comments
Richard Zeits • 10 Comments
Wed, Nov. 30, 7:30 PM
- Analysts say today's agreement to curb oil production will elevate prices through at least H1 2017, and the first to pounce on higher prices by expanding drilling will be U.S. shale explorers.
- In shale fields across the U.S., production costs have been cut roughly in half since 2014, when Saudi Arabia raised output in an attempt to drive higher-cost shale producers out of the market, but instead of killing the U.S. shale industry, the ensuing price war made shale a leaner and meaner rival.
- As an example, Concho Resources (NYSE:CXO) CEO Tim Leach says his company is on track to raise production 5% by year’s end, even though it is spending 7% less than originally budgeted for 2016.
- Continental Resources' (NYSE:CLR) Harold Hamm says U.S. oil production will rise in the wake of OPEC’s cut, and rising prices could unlock some of the thousands of drilled but uncompleted wells in the U.S.; some of CLR's ~175 uncompleted wells now will be completed in light of OPEC’s decision and the improved price outlook but the company will not add rigs.
- “As you move up the price curve and you get more confident of the outlook for future pricing, we’ll be able to add activity as cash flows grow," says Newfield Exploration (NYSE:NFX) CEO Lee Boothby.
- Among other shale-focused companies that enjoyed huge gains today: WLL, PE, OAS, SN, CRC, FANG, RSPP, PXD, XEC, EPE, WPX.
Wed, Nov. 30, 12:45 PM
Wed, Nov. 30, 9:23 AM
- Gainers: SCON +71%. CRC +32%. ORIG +16%. DNR +16%. GST +16%. OAS +17%. LEI +16%. WTI +14%. SM +13%. AREX +13%. SN +13%. CPE +13%. SDRL +13%. CIE +13%. HHS +13%. SGY +13%. LPI +12%. SYRG +12%. WLL +11%. ATW +11%. GTE +11%. CLR +11%. WPX +11%. ESV +11%. NE +10%. CRZO +10%. DO +10%. NBR +10%. BTE +10%. MRO +10%.
- Losers: ARWR -61%. CERC -47%. CMRE -14%. AEO -10%. GLBS -9%.
Mon, Nov. 28, 2:51 PM
- WPX Energy (WPX -2.9%) and Callon Petroleum (CPE -5.4%) are awarded Buy ratings at Deutsche Bank on valuation, margin improvement and exposure to emerging core areas.
- Deutsche Bank upgrades WPX to Buy from Hold and raises its price target to $17 from $15, seeing producers with the combination of Midland growth and Delaware positive rate of change as holding the best differentiated outlook for 2017.
- The firm initiates CPE with a Buy rating and $19 price target, citing CPE's core economics, capital efficiency and inventory catalysts; using its core Midland assets as a launching pad for expansion, CPE has aggressively acquired inventory and resource potential, benefiting from first-mover advantages while improving its runway for growth, the firm says.
Tue, Nov. 15, 10:49 AM
- West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore, the U.S. Energy Information Administration reports.
- The rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; of the ~450 total U.S. rigs, the Permian now accounts for ~220.
- Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have fallen to below 1M bbl/day.
- Top Permain producers include CVX, OXY, APA, PXD, CXO, DVN, EOG, MRO, FANG, XOM, ECA, RSPP, SM, EGN, PE, AREX, GPOR, XEC, LPI, CPE, ESTE, WPX, PDCE
Mon, Nov. 14, 3:58 PM
- WPX Energy (WPX +0.5%) is upgraded to Outperform from Market Perform at BMO Capital. which says WPX has undergone an impressive transformation and is now positioned with one of the highest-quality asset bases among small- to mid-cap energy companies.
- WPX has mostly moved beyond legacy cost structure and balance sheet headwinds, and is in a position to achieve top-tier production growth, although the story is not yet reflected in the shares, which trade at a 3x-4x turn to Permian pure plays on 2018 EV/EBITDAX.
Thu, Nov. 3, 2:07 PM
Thu, Nov. 3, 9:15 AM
Wed, Nov. 2, 4:40 PM
Tue, Nov. 1, 5:35 PM
- ACLS, ADSW, AEL, AIG, ALIM, ALL, ALNY, ALSK, AMRS, ARC, AREX, AVD, AWK, AWR, BBRG, BCOV, BEAT, BGC, BKCC, BKFS, BKH, BREW, BRKR, CABO, CAR, CBPO, CCRN, CDI, CF, CGI, CHEF, CLR, CODI, COHR, CPE, CSGS, CSLT, CWEI, CXW, DMRC, DPLO, DPM, DVA, ENSG, EPAY, EQC, EQIX, ERII, ESRT, EVTC, EXAR, EYES, FB, FIT, FMC, FMI, FNF, FOE, FRSH, FRT, FSLR, FTK, G, GDDY, GPOR, HABT, HASI, HBM, HIVE, HOLX, HOS, HR, HSTM, HUBS, IAC, IL, INN, INOV, IO, IOSP, IRG, ITRI, IXYS, JONE, JRVR, KEYW, KGC, KTOS, LGCY, LHCG, LNC, LOPE, LPI, LPLA, LQ, LSI, MANT, MASI, MCHX, MDU, MET, MGNX, MHLD, MRO, MTGE, MUSA, MWA, NBIX, NGHC, NLY, NPO, NSTG, NVDQ, OESX, OME, OSUR, OTTR, PAA, PACB, PAGP, PE, PEGA, PEI, PEIX, PGRE, PRA, PRAH, PRU, PTCT, QCOM, QGEN, QTWO, QUIK, REGI, REXR, RGLD, RICE, RIG, RLJ, RMP, ROG, RRD, RRGB, RRTS, RUBI, RXN, RYN, SBRA, SBY, SF, SRC, SWM, TCAP, TEP, TPC, TROX, TTEC, TTWO, TVIA, TWO, VNDA, VVC, WFM, WMC, WMGI, WPG, WPX, WSTL, WTI, WTS, WYNN, XEC, XOXO, XPO, ZNGA
Fri, Sep. 23, 2:06 PM
Wed, Aug. 3, 5:57 PM
Tue, Aug. 2, 5:35 PM
- AEL, AGO, AGU, ALB, ALIM, ALL, ANDE, AREX, ATO, AWK, AWR, BBRG, BFAM, BGC, BIO, BKH, BNFT, BREW, BYD, CABO, CBPX, CCRN, CDI, CECO, CF, CHDN, CIM, CLR, CNAT, CODI, CPA, CSGS, CSII, CTL, CXW, DENN, DEPO, DK, DKL, DPM, ECR, EPE, EPR, EQIX, ERII, ETE, ETP, EVC, EVHC, EXAR, EXEL, EXTR, FIVN, FOXA, FRGI, FRSH, FSLR, G, GBDC, GDDY, GERN, GPOR, HABT, HASI, HI, HIL, HIVE, HLF, HOS, HR, HRTG, HUBS, IAG, IL, INOV, IO, IRG, ITRI, JACK, JCOM, JONE, JRVR, LGCY, LHCG, LNC, LPI, MASI, MC, MED, MET, MNR, MRO, MTDR, MUSA, MWA, NBIX, NKTR, NLY, NNBR, NP, NSIT, NSTG, OAS, OME, OSUR, PDM, PE, PEGA, PMT, PODD, PRA, PRU, PRXL, QLYS, QTWO, QUIK, REXR, RICE, RIG, RIGP, RLJ, RMP, RNG, RP, RST, RYN, SBY, SEMI, SGMO, SNCR, SQ, SQNM, SRC, SSS, STAA, STR, SUN, SWM, SXL, TCAP, TDOC, TEAR, TEP, TLLP, TRIP, TRNC, TROX, TS, TSLA, TSLX, TSO, TTEC, TWO, UHAL, VTAE, VVC, WCN, WGL, WMC, WPG, WPX, WU, XEC, XPO
Wed, Jul. 6, 3:53 PM
- WPX Energy (WPX +4.8%) is upgraded to Buy from Neutral with a $14.75 price target, raised from $10.50, at Goldman Sachs, which cites the completion of WPX’s recapitalization and strategic repositioning.
- The firm says WPX's recent $500M equity issuance resolves lingering investor balance sheet concerns, paving the way for the company to narrow its 1.8x discount to peers.
- Goldman notes that WPX has completed asset divestitures worth $2.5B since new leadership took over in mid-2014, transitioning its asset base to resemble its Permian peers more closely, and expects the company to enjoy peer-leading, debt adjusted oil production growth of 29% at least through 2018.
Tue, Jun. 7, 3:44 PM
- Seaport Global Securities upgrades a half-dozen energy E&P stocks - and downgrades two others - even after the group has rallied YTD, saying it is "willing to overlook higher leverage as long as the operational trajectory is notably improving."
- Noble Energy (NBL +4.2%) and Eclipse Resources (ECR +5.5%) are upgraded to Buy from Neutral, as NBL boasts "strong growth and cheap valuation relative to peers" and ERC is "among the cheapest NE gas names while offering good compression in out-year multiples."
- Seaport hikes Synergy Resources (SYRG +2.4%) to Buy from Accumulate thanks to "top-tier growth potential at >$50 oil."
- Upgraded to Accumulate from Neutral are Carrizo Oil & Gas (CRZO +4.3%), as “strong Eagle Ford returns justify return to growth,” and Concho Resources (CXO +4.6%), with “high-quality exposure to the Delaware Basin poised to garner further credit."
- The firm raises WPX Energy (WPX +0.2%) to Neutral from Sell, citing “leverage burden eased with equity, higher commodity price deck assumptions, recent operational progress."
- However, Oasis Petroleum (OAS +0.7%) is downgraded to Neutral from Buy as “NAV valuation gap has closed after a 54% move since our March 30 report," and Petroquest Energy (PQ +1.3%) is cut to Accumulate from Buy as “risk/reward upside has tempered" following a 67% move since March 30.
Mon, Jun. 6, 8:58 AM
- WPX Energy (NYSE:WPX) -1.4% premarket after announcing a public offering of 45M common shares, with an underwriters option to purchase up to an additional 6.75M shares.
- WPX says it plans to use the proceeds for general corporate purposes, which may include an acceleration of drilling and completion activities, bolt-on acreage acquisition, and midstream infrastructure in the Delaware Basin.
- WPX also says it is raising its FY 2016 production guidance to 39K-41K bbl/day of oil from previous guidance of 37K-39K bbl/day, with overall production of 77K-82K boe/day from a previous estimate of 75K-80K boe/day.
- The increase is driven by better than expected well performance and an expected increase in drilling and completion activity in the Delaware and Williston basins during H2; WPX now sees FY 2016 capex of $400M-$450M, vs. earlier guidance of $350M-$400M.