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Q4 2013 Earnings Call – WPX Energy, Inc.

WPX Energy, Inc. · Feb 27, 2014 · 36 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 1
    February 27, 2014 Operational Update Jim Bender, Chief Executive Officer
  2. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 2
    2013 Highlights Piceance Ran 7 rigs in 2013 Setting the stage for growth Delineation of Niobrara progressing 1st vertical test in the East (Rulison field), total depth of 13,797 feet with initial reservoir pressure of 13,800 psi 4th…
  3. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 3
    WPX 2013 Domestic Reported Reserves Reserve growth in 2013 Total domestic replacement rate for all products was 162% Exceeding 100 million barrels of proved domestic oil reserves Replaced domestic oil production at a rate of 547%…
  4. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 4
    February 27, 2014 Operational Update Bryan Guderian, Sr. VP of Operations
  5. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 5
    Piceance Highlights Efficient Production Growth 2013 activity New WPX record: 36-well pad Spud 45 wells in 4Q Spud 210 wells in 2013 Increased rig count to 7 mid-year 2014 Piceance outlook 6% growth in YE exit rate Running 9 rigs…
  6. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 6
    Piceance Continuous Improvements Continued improvement in Valley Total Well Cost 2013 Maintained or decreasing drilling days 2013 Plan 2013 Jan-Jun 2013 Jul-Dec 3,000 in the Valley drilling program 2,800 Drilling & Completion Cost…
  7. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 7
    Williston Continues Strong Production Growth 4th quarter Increased infill density drilling commences MARY R SMITH 5-8HX MARY R SMITH 5-8HW FIRST SALES: 12/19/2013 FIRST SALES: 12/19/2013 30 Day IP: 1,614 BOPD Currently permitting 6…
  8. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 8
    WPX is 1 in Middle Bakken Cumulative Production Average 365-day cumulative production per well of 136.8 Mbo, 1-Yr 1-Yr andand 2-Yr 2-Yr Cum.Production Cumulative Oil Production per Well1 (Based on productive days) 52% higher than…
  9. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 9
    San Juan Gallup Transitioning to Pad Development 2013 activity WPX drilled and operates 5 of the 7 peak- performing wells in the Mancos Gallup CHACO 2408 36P 143H FIRST SALES: 11/18/2013 30 Day IP: 322 BOPD CHACO 2307 12E 168H 2014…
  10. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 10
    Financial Results Rod Sailor, Chief Financial Officer
  11. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 11
    4th Quarter Results 4Q YTD Dollars in millions, except production numbers 2013 2012 2013 2012 Daily Production Gas (MMcf/d) 971 1,070 1,003 1,105 Oil (Mbbl/d) 24.2 19.4 21.8 18.0 NGLs (Mbbl/d) 20.1 25.0 20.8 28.9 Equivalent…
  12. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 12
    2014: 1st Quarter and Full-Year Guidance Production 1Q FY 2014 % of Net Realized Price3 1Q FY 2014 Natural Gas MMcf/d 952 - 962 960 - 969 Natural Gas - NYMEX 83% - 86% 81% - 87% Oil Mbbl/d 23.0 - 23.3 28.1 - 28.5 Oil - WTI 83% - 86% 84% -…
  13. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 13
    Hedging Overview As of 2/26/2014 2014 Volumes 2014 Price 2015 Volumes 2015 Price Natural Gas1 (BBtu/d) (MMBtu) (BBtu/d) (MMBtu) Fixed Price Swaps 1,3 323 4.21 130 4.38 Collars 184 4.04 - 4.66 25 4.00 - 4.50 Crude Oil (bbl/d)…
  14. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 14
    Outlook for 2014 2014 highlights Average rig count of 15 - 16 rigs Production in growth basins up 6% year over year, offset by other basins declining 12% Improved financial performance 85% of capital expenditures directed to…
  15. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 15
    Appendix
  16. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 16
    WPX Portfolio Piceance Williston San Juan Appalachia Powder River Apco1 3,019 Bcfe Proved 105 MMboe Proved 517 Bcfe Proved 328 Bcfe Proved 245 Bcfe Proved 22 MMboe Proved 11,878 Bcfe 3P 176 MMboe 3P 1,645 Bcfe 3P 1,555 Bcfe 3P 657 Bcfe…
  17. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 17
    Key Statistics by Basin 2014 Proved Average 2013 3P Gross Reserves 3P Reserves Net Acreage Rig Count Production Oil/NGL Drilling (YE2013 (YE2013 (YE2013) (Op) (MMcfe/d) Focused Locations Bcfe) Bcfe) Primary Areas of Focus…
  18. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 18
    2012 - 13 Daily Production 2012 Avg 2013 Avg 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Domestic Production Gas (MMcf/d) 1,114 1,123 1,058 1,051 1,086 1,005 989 993 953 985 Oil (Mbbl/d) 10.4 12.3 11.7 13.6 12 13.8 15.1 17.1 18.9 16.2 NGLs…
  19. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 19
    Growing Higher-Margin Oil 77% oil CAGR since 2010 2014 growth in higher-margin oil Record oil production in 2013 39% year-over-year domestic oil growth Averaged 16.2 Mbo/d a 35% increase Y/Y Williston up 30% - 35% Y/Y Discovered and…
  20. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 20
    Domestic Price Realization for 2013 Gas (/Mcf) NGL (/bbl) Oil (/bbl) 1Q 13 2Q 13 3Q 13 4Q13 1Q 13 2Q 13 3Q 13 4Q13 1Q 13 2Q 13 3Q 13 4Q13 Weighted-Average Sales Price 3.12 3.78 3.16 3.30 37.27 37.41 43.10 43.32 89.23 88.62 99.43…
  21. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 21
    Impairment Summary of 2013 Income Statement Category Basin Impairment Exploration Other in Millions Total Expense Expense Investment Income Appalachian Basin 1,109 772 317 20 Piceance-Kokopelli 88 88 - - Powder River 192 192 -…
  22. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 22
    Piceance Basin Orange: Highlands Yellow: Valley Net acreage: 221,186 1 Average rigs running in 2013: 6.6 Remaining 3P drilling locations: 9,0231 Composition: Gas/NGL focused 1Acreage and drilling locations are as of…
  23. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 23
    Niobrara Delineation to the East with Vertical Test Valley Acreage and 3D Seismic Coverage Valley delineation 50% delineated 2013 Up to 10 wells planned for 2014 2013 Testing Increases delineation to 80% Producing 3D seismic…
  24. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 24
    Piceance Composite NGL Barrel and Realized Price (4th Quarter, 2013) 41.66 Product Weighted Average NGL Product /Gal NGL /barrel Mix Ethane1 39% .20 Propane 28% 1.18 33.85 Net Realized Price Isobutane 8% 1.45 **0.61 per Mcf…
  25. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 25
    Williston Basin Net acreage: 80,7361 Average rigs running in 2013: 4.1 Remaining 3P drilling locations: 3691 Composition: Oil focused 1Acreage and drilling locations are as of 12/31/13 WPX Operational Update February 27,…
  26. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 26
    Williston Basin Ranked by F&D Cost (including WPX) RENVILLE Assumed Avg. EUR DIVIDE Area BURKE F&D Cost1* (Mboe) 1 Southern Antelope 11.96 920 WILLIAMS MOUNTRAIL Sanish and Parshall 12.63 634 WARD WPX Energy FBIR 15.09 729…
  27. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 27
    Williston Netback Price Analysis Estimated Volume % Sales Outlets (Jan - Mar 2014) Basin-Priced Sales 50% Rail Deals 38% Enbridge Capacity 12% Total Sales Outlets 100% Assumed 1Q 2014 total netback of WTI less 10 - 11 per…
  28. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 28
    San Juan Basin Green: Deep/Shallow Yellow: Shallow Net Acreage: 160,8251 Average rigs running in 2013: 1 Remaining 3P drilling locations: 1,3761 Composition: Gas/Oil 1Acreage and drilling locations are as of 12/31/13 WPX…
  29. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 29
    Argentina Asset Map Acambuco: 1.5% WI Noreste Basin Agua Amarga: Entre Lomas: 23% WI, 40.7% Stock Interest 23% WI, 40.7% Stock Interest in Petrolera in Petrolera (Effective Interest 52.8%) (Effective Interest 52.8%)…
  30. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 30
    Colombia Asset Map Valle Medio Del Magdalena Basin Llanos 40 Block 50% WI Turpial Block 163,000 acres 50% WI 100,000 acres Llanos Orientales Basin Llanos 32 Block 20% WI 111,000 acres Block Basin WPX…
  31. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 31
    Apco Highlights Argentina Vaca Muerta Exposure 2013 Neuqun Basin development drilling Neuqun Basin (Vaca Muerta acreage) program concluded with 28 wells spud Entre Lomas 96,000 net acres Initiated 7-well Neuqun horizontal drilling…
  32. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 32
    Non-GAAP
  33. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 33
    Reconciliation-Adjusted Income (Loss) from Continuing Operations (Unaudited) 2012 2013 (Dollars in millions, except per share amounts) 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q YTD Income (loss) from continuing operations attributable to WPX…
  34. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 34
    Consolidated Statements of Operations and EBITDAX Reconciliations (Unaudited) 2012 2013 (Dollars in millions) 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q YTD Revenues: Product revenues: Natural gas sales 357 312 331 364 1,364 267 316 252 258 1,093…
  35. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 35
    Domestic Segment (Unaudited) 2012 2013 (Dollars in millions) 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Revenues: Product revenues: Natural gas sales 353 307 327 359 1,346 263 310 248 253 1,074 Oil and condensate sales 80 95 87 114 376 111 121…
  36. Q4 2013 Earnings Call – WPX Energy, Inc. – slide 36
    International Segment (Unaudited) 2012 2013 (Dollars in millions) 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Revenues: Product revenues: Natural gas sales 4 5 4 5 18 4 6 4 5 19 Oil and condensate sales 26 27 31 31 115 28 30 29 28 115 Natural…

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