WPX Energy: First Round Draft Choice

Aug. 18, 2020 4:29 PM ETWPX Energy, Inc. (WPX) StockWPX6 Comments

Summary

  • WPX is ahead of the pack in the Permian and has taken steps to mitigate exposure in the Bakken.
  • We think the company is undervalued at its present price.
  • Investors with a moderate risk profile should take a look at WPX for growth.
  • This idea was discussed in more depth with members of my private investing community, The Daily Drilling Report. Get started today »

Introduction

So who doesn't love sports and sports metaphors? My wife, for one. She's accused me of serial sports metaphorization. Coming from her, that wasn't a compliment, and pretty much means I speak mostly in metaphorical terms. I'll let you decide for yourself.

She probably has a point. I do most of the cooking, because I'm a better cook, and she's a semi-neurotic cleaner. What a combo, huh? Anyway the other night she asked me when dinner would be ready, and I replied "we just got the two-minute warning." Now, any good sportsaholic knows that means - there's not a lot of time left before the buzzer, right? Of course that's right.

It, however, meant nothing to her and she asked that I speak in plain English.

I thought for a second, and said, "Time has expired, players are headed to the locker room," feeling that I clearly told her that the meal was done, and it was time to come to the table.

She put an exasperated look on her face and said, "Fluidsdoc if I hear one more metaphor, I swear...." She never got to finish that thought as I'd checked the "doneness" of the meatloaf, and brightly said as I slid it back into the oven, "flag on the play, five minutes added to the play clock... first down."

Conversation was limited that meal. Like I said, she's not into sports.

On to business...

I last wrote on WPX Energy (WPX) in January of this year. I was moderately bullish about the prospects for this company then. That seems like a lifetime ago and in a different universe. This article is meant as an update to that prior article, and readers should give the older article a read for a complete thesis for this company.

A quick

This article was written by

10.8K Followers

Fluidsdoc is an international oil industry veteran with 40 years of experience having worked on six continents and in over twenty countries around the world. He is an expert in the upstream oilpatch and an energy sector specialist.

He is the leader of the investing group The Daily Drilling Report where he provides investment analysis for the oil and gas industry. Features of the group include: a model portfolio that covers all segments of upstream oilfield activity with weekly updates, ideas for both U.S and international energy companies, coverage from shale to deepwater drillers, technical analysis to identify catalysts, and more. Learn More.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in WPX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This is not advice to buy or sell this stock. I am not an accountant or CPA or CFA. This article is intended to provide information to interested parties and is in no way a recommendation to buy or sell the securities mentioned. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to do their own due diligence before investing their hard-earned cash.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

More on WPX