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1Q 2015 RESULTS – WPX Energy, Inc.

WPX Energy, Inc. · May 6, 2015 · 28 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. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 1
    May 6, 2015 1Q 2015 Results Rick Muncrief, President and Chief Executive Officer
  2. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 2
    Building the Premier Western Energy Producer Strong production growth1 Pro forma production grew 13%2 87,000 NET ACRES Oil production of 34.6 Mbbl/d grew 79% 610 DRILLABLE LOCATIONS Increasing full-year oil production by 4% Strong…
  3. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 3
    CEO Perspective Over the Past Twelve Months Positioning Organization for Success Realigned organization ORGANIZATIONAL Right sized staffing level Established a winning culture Attracting top talent Announced or Completed 1.5B…
  4. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 4
    Operational Results Clay Gaspar, Sr. VP Operations and Resource Development
  5. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 5
    WPX Continuing to Reduce Costs Current Estimated Drilling and Completion Cost Versus Average Well Cost in 2014 0% -5% -10% -13% -15% -20% -24% -25% -25% -31% -30% -35% Drilling Completion Facilities/Other Overall LOE per…
  6. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 6
    Williston and San Juan Gallup Quarterly Production Growth 45 40 35 30 25 Mboe/d 20 15 10 5 0 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q2015 San…
  7. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 7
    Williston Basin: Strong Production Growth and Cost Declining 1Q15 production growth of 60%1 D&C Reductions Versus 2014 Reduced LOE by 30%1 -5% Currently 15 drilled uncompleted wells Entered rail deal to achieve Brent pricing -15%…
  8. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 8
    San Juan Gallup: Continued Growth and Execution 1Q15 production growth of 536%1 D&C Reductions Versus 2014 Record 8-day spud-to-rig release -5% Continued expansion of our gathering system -13% -13% Improving netbacks WTI less 8 - 10…
  9. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 9
    Piceance: Large-Scale Resource with Deep Potential Pro forma 1Q 15 production growth of 2%1 D&C Reductions Versus 2014 15% decrease in D&C cost for Valley and Ryan Gulch -5% -11% Average price differentials improved -15% -15%…
  10. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 10
    Financial Results Kevin Vann, Chief Financial Officer
  11. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 11
    1st-Quarter and Annual Results 1Q Dollars in millions, except production numbers 2015 2014 Daily Production Gas (MMcf/d) 705 795 Oil (Mbbl/d) 34.6 19.3 NGLs (Mbbl/d) 16.9 17.6 Equivalent (Mboe/d) 169.1 169.4 Adjusted…
  12. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 12
    2015 Full-Year Guidance Production Prior Guidance Current Guidance Expenses Prior Guidance Current Guidance Natural Gas MMcf/d 615 - 650 630 - 665 Oil Mbbl/d 29.1 - 30.3 30.4 - 31.6 per boe NGL Mbbl/d1 14.7 - 15.3 16.5 - 17.5 LOE 4.00…
  13. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 13
    Hedging Overview As of 4/13/2015 Apr - Dec 2015 2016 Volume/Day Average Price Volume/Day Average Price Natural Gas (MMBtu) Fixed Price Swaps1 410,000 4.05 280,000 3.81 Costless Collars 50,000 4.00 - 4.50 Natural Gas Basis…
  14. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 14
    Positioned for Success in 2015 and Beyond Execution Focus Discipline Opportunistic WPX Energy 1Q 2015 Results May 6, 2015 14
  15. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 15
    Appendix
  16. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 16
    San Juan Overview 217,000 net acres Oil window: 85,000 acres1 Gas window: 134,000 acres Operating 2+ rigs in 2015 3,900 total gross drilling locations2 Oil window: 4003 Gas window: 3,5002 DRY GAS Commodity mix Oil window Oil: 69%…
  17. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 17
    Williston Overview 87,000 net acres Operating 1+ rigs in 2015 600+ gross drilling locations 520 operated drilling locations 90 non-op locations Commodity mix 87% oil 7% natural gas 6% NGLs Available sales outlets Clearbrook,…
  18. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 18
    Piceance Overview 200,000 net acres Operating 2+ rigs in 2015 11,500 gross drilling locations Commodity mix1 2% oil 77% natural gas 21% NGLs Available sales outlets San Juan Rockies California MidCon Unbooked deep resource…
  19. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 19
    2014-15 Reported Daily Production 2014 Avg 2015 Avg 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Total Production Gas (MMcf/d) 795 791 746 742 768 705 705 Oil (Mbbl/d) 19.3 23.7 25.8 32.3 25.3 34.6 34.6 NGLs (Mbbl/d) 17.6 17.9 17.1 15.9…
  20. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 20
    Domestic Price Realization for 2015 Gas (/Mcf) Oil (/bbl) NGL (/bbl) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 15 2Q 15 3Q 15 4Q 15 1Q 15 2Q 15 3Q 15 4Q 15 Weighted-Average Sales Price 2.90 38.34 22.74 1 Revenue Adjustments (.28) (.70) (7.34)…
  21. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 21
    WPX Financial Profile Capitalization Liquidity and Credit Metrics 1Q 2015 1Q 2015 Cash and Equivalents 82 Cash 82 Total Long-Term Debt 2,000 Available Credit Facility Capacity 1,500 Net Debt 1,918 Total Liquidity 1,582 Stockholders…
  22. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 22
    Western Prices Have Increased Relative to Eastern Locations West Basis Strengthening1 East Basis Weakening2 0.50 0.33 0.00 (0.19) (0.23) (0.37) per MMBtu -0.50 -1.00 (0.96) -1.50 (1.76) -2.00 2007 to 2010…
  23. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 23
    Strong Western Supply/Demand Fundamentals Through 2020 Northwest 2.0 Bcf/d Demand demand increase +2.0 Bcf/d through 2020 Rockies and Southwest San Juan Basin production flat to declining 0.5 Bcf/d Demand +0.5 through 2020…
  24. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 24
    Mexican Exports to Drive Western Demand Growth July 2014, El Paso announced Total Proposed Capacity 21 Year deal with Mexicos CFE 7.7 Bcf/d to provide up to 500 MMBtu/d of firm capacity from SJ basin to Mexico border beginning Nov.…
  25. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 25
    San Juan Gallup Gathering System Creates Takeaway Optionality WPX Gathering System WPXs San Juan gathering system is connected to Westerns system at Lybrook with two additional connections expected in 2015 Built 95 miles of oil,…
  26. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 26
    Non-GAAP
  27. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 27
    Reconciliation-Adjusted Income (Loss) from Continuing Operations (Unaudited) 2014 2015 (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…
  28. 1Q 2015 RESULTS – WPX Energy, Inc. – slide 28
    Reconciliation EBITDAX (Unaudited) 2014 2015 (Dollars in millions) 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Adjusted EBITDAX Reconciliation to net income (loss): Net income (loss) 19 (133) 66 219 171 68 68 Interest expense 29 28 31 35…

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