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Q2 2014 Earnings Call – WPX Energy, Inc.

WPX Energy, Inc. · Aug 6, 2014 · 29 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. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 1
    August 6, 2014 2nd Quarter Earnings Call Rick Muncrief, Chief Executive Officer
  2. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 2
    2nd Quarter Highlights Domestic oil production up 57% 2Q 14 vs. 2Q 13 Domestic oil production grew 23% 2Q 14 vs. 1Q 14 Adjusted EBITDAX increased 40% 2Q 14 vs. 2Q 13 Domestic oil revenue grew 60% quarter over quarter Adding nearly…
  3. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 3
    Base Production Growth after Normalizing for Legacy Transaction 4Q 14 Growth vs. 4Q 13 Equivalent production expected to be up by 9% Oil production expected to be up by 60% Production Growth Excluding Legacy Impact 1,400…
  4. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 4
    Piceance 2nd Quarter Highlights 2nd quarter activity Spud 72 wells in 2Q Spud 140 wells 2Q YTD 2nd quarter net production 691 MMcfe/d Natural gas 584 MMcf/d NGL 15.8 Mbbl/d Oil 2.0 Mbbl/d Hold 9 rigs for remainder of 2014 Lifting…
  5. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 5
    Williston Continues to Drive Strong Production Growth Production exceeds 2Q target Oil production up 53% 2Q 14 vs. Average 30 day IP: 2Q 13 1,176 BOPD Middle Bakken Oil production up 21% 2Q 14 vs. 1,095 BOPD Three Forks 1Q 14…
  6. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 6
    San Juan Gallup Accelerating Production Growth Production exceeds 2Q target Oil production up 500% 2Q 14 vs. 2Q 13 2306 06L 178H Oil production up 76% 2Q 14 vs. 1Q 14 FIRST SALES: 3/9/2014 AVG. 30-DAY IP: 433 BOPD 2308 09A 149H…
  7. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 7
    San Juan Gallup 2014 Well Performance Exceeding 2013 70 Avg Gross Cumulative Oil Production (Mbbl) 60 13 Wells 15 Wells 50 40% Increase 40 from 2013 to 2014 30 20 2013 Spuds 10 2014 Spuds 0 0 100 200 300 400 500…
  8. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 8
    Financial Results Kevin Vann, Chief Financial Officer
  9. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 9
    2nd Quarter Results 2Q YTD Avg. Dollars in millions, except production numbers 2014 2013 2014 2013 Daily Production Gas (MMcf/d) 965 1,007 970 1,014 Oil (Mbbl/d) 29.0 21.2 26.7 20.3 NGLs (Mbbl/d) 18.3 21.3 18.2 21.5 Equivalent…
  10. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 10
    2014 Full-Year Consolidation Guidance Production Full Year 2014 % of Net Realized Price3 Full Year 2014 Natural Gas MMcf/d 920 - 950 Natural Gas - NYMEX 80% - 86% Oil Mbbl/d 30.2 - 32.0 Oil - WTI 81% - 87% NGL Mbbl/d 18.0 - 19.0 NGL -…
  11. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 11
    WPX Long-Term Vision Coming Into Focus Strategy development process underway Full-scale review of the entire portfolio Multi-year strategy this fall Status quo is not an option Transition to pure play E&P mindset More nimble…
  12. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 12
    Appendix
  13. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 13
    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…
  14. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 14
    Hedging Overview As of 7/21/2014 3Q - 4Q 2014 3Q - 4Q 2014 2015 2015 Volumes Price Volumes Price Natural Gas1 (BBtu/d) (MMBtu) (BBtu/d) (MMBtu) Fixed Price Swaps 1,3 328 4.21 182 4.35 Collars 190 4.04 - 4.66 50 4.00 - 4.50 Crude…
  15. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 15
    Key Statistics by Basin 2014 Proved 2013 3P Reserves Net Acreage Average Oil/NGL Drillable Reserves Production (YE2013 (YE2013) Rig Count Focused Locations4 (YE2013 (MMcfe/d) Bcfe) (Op) Bcfe) Primary Areas of Focus Piceance1…
  16. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 16
    2013-14 Daily Production 2013 Avg 2014 Avg 1Q 2Q 3Q 4Q Total 1Q 2Q Domestic Production Gas (MMcf/d) 1,005 989 993 953 985 956 945 950 Oil (Mbbl/d) 13.8 15.1 17.1 18.9 16.2 19.3 23.7 21.5 NGLs (Mbbl/d) 21.2 20.8 19.7 19.7 20.3 17.6…
  17. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 17
    Domestic Price Realization for 2014 Gas (/Mcf) NGL (/bbl) Oil (/bbl) 1Q 14 2Q 14 3Q 14 4Q 14 1Q 14 2Q 14 3Q 14 4Q 14 1Q 14 2Q 14 3Q 14 4Q 14 Weighted-Average Sales Price 4.89 4.03 49.14 44.18 88.40 88.94 Revenue Adjustments1 (0.49)…
  18. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 18
    Piceance Basin Orange: Highlands Yellow: Valley Net acreage: 221,186 1 Current rig count: 9 Drillable locations: 12,4751 Composition: Gas/NGL focused 1 Acreage and drilling locations are as of 12/31/13 Niobrara Dedicated…
  19. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 19
    Piceance Composite NGL Barrel and Realized Price (2Q 2014) Weighted Average Product NGL /barrel NGL Product /Gal Mix Ethane (1) 33% 0.29 Propane 31% 1.06 Net Realized Price Isobutane 9% 1.30 Normal Butane 8% 1.25 **0.59…
  20. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 20
    Williston Basin Net acreage: 88,6971,4 Current rig count 2014: 5 Drillable Locations: 6521,2,3 Composition: Oil focused 1 Acreage and drilling locations are as of 6/30/2014 2 Does not include the impact of downspacing…
  21. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 21
    Downspacing Adds Premium Locations Per 1,280 DSU 6 Middle Bakken (previously 4) 5 Three Forks (previously 3) 199 locations added 44% increase in locations 88% in Mandaree area YE 13 Increased Remaining Updated 7-Well…
  22. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 22
    Williston Netback Price Analysis Estimated Volume % Sales Outlets (Jul - Sep 2014) Basin-Priced Sales 58% Rail Deals 30% Enbridge Capacity 12% Total Sales Outlets 100% Assumed 3Q 2014 total netback of WTI less 12 - 14 per…
  23. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 23
    San Juan Basin Green: Deep/Shallow Yellow: Shallow Net Acreage: 160,8251 Current rig count: 2 Drillable locations: 2,9661 Composition: Gas/Oil 1Acreage and drilling locations are as of 12/31/13 WPX 2nd Quarter Earnings Call…
  24. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 24
    Apco Highlights Argentina Vaca Muerta Exposure Continued 6-well Neuqun horizontal drilling program Neuqun Basin (Vaca Muerta acreage) Early results encouraging Three conventional horizontal wells put on production Entre Lomas 96,000…
  25. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 25
    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%)…
  26. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 26
    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 2nd…
  27. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 27
    Non-GAAP
  28. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 28
    Reconciliation-Adjusted Income (Loss) from Continuing Operations (Unaudited) 2013 2014 (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…
  29. Q2 2014 Earnings Call – WPX Energy, Inc. – slide 29
    Reconciliation EBITDAX (Unaudited) 2013 2014 (Dollars in millions) 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Adjusted EBITDAX Reconciliation to net income (loss): Net income (loss) (113) 22 (116) (984) ( 1,191) 19 (133) (114) Interest…

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