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Q2 2015 Results – WPX Energy, Inc.

WPX Energy, Inc. · Aug 6, 2015 · 27 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 2015 Results – WPX Energy, Inc. – slide 1
    August 6, 2015 2Q 2015 Results Rick Muncrief, President and Chief Executive Officer
  2. Q2 2015 Results – WPX Energy, Inc. – slide 2
    2nd Quarter Highlights Strong oil production of 32.7 Mbbl/d, 38% increase1 YTD cash margin only 5% lower despite 45% decrease in commodity prices2 Costs continue to trend lower1 General and administrative down 18%3 Lease operating…
  3. Q2 2015 Results – WPX Energy, Inc. – slide 3
    RKI Acquisition: Core Delaware Basin Acreage 92,000 net acres with 12 prospective zones 670,000+ net prospective acres of stacked pay 3,600+ gross risked locations 98% of net acres held by production 22,000 Boe/d current production…
  4. Q2 2015 Results – WPX Energy, Inc. – slide 4
    Operational Results Clay Gaspar, Sr. VP Operations and Resource Development
  5. Q2 2015 Results – WPX Energy, Inc. – slide 5
    Williston: Production Up, Costs Down with EUR Increased LOE per BOE 25% production growth1 9 8.61 6 Flexible capital program /BOE 6.11 2nd rig in August and 3rd rig in November 29% Inventory of 14 drilled uncompleted wells…
  6. Q2 2015 Results – WPX Energy, Inc. – slide 6
    San Juan Gallup: Continued Growth and Execution Oil Netbacks Y/Y 300%+ production growth1 0 -2 Efficiencies drive more wells with fewer rigs -4 Two record wells of 7.9 days -6 24% -8 Improvement Intra-pad rig move of 0.3 days…
  7. Q2 2015 Results – WPX Energy, Inc. – slide 7
    Piceance: Large-Scale Resource with Deep Potential Half the time and twice the depth Piceance Niobrara Days vs. Depth Spud May 2014: 1 mile drilled in 117 days 0 Spud April 2015: 2 mile drilled in 50 days 2,500 Niobrara technical…
  8. Q2 2015 Results – WPX Energy, Inc. – slide 8
    Financial Results Kevin Vann, Chief Financial Officer
  9. Q2 2015 Results – WPX Energy, Inc. – slide 9
    2nd Quarter and YTD Results 2Q YTD Dollars in millions, except production numbers 2015 2014 2015 2014 Daily Production Gas (MMcf/d) 675 791 690 793 Oil (Mbbl/d) 32.7 23.7 33.7 21.5 NGLs (Mbbl/d) 19.7 17.9 18.3 17.7 Equivalent…
  10. Q2 2015 Results – WPX Energy, Inc. – slide 10
    Pro Forma 2015 Full-Year Guidance1 Production Prior Guidance Current Guidance Expenses Prior Guidance Current Guidance Natural Gas MMcf/d 630 - 665 660 - 675 per Boe Oil Mbbl/d 30.4 - 31.6 35.0 - 36.5 LOE 3.75 - 4.75 3.75 - 4.25 NGL…
  11. Q2 2015 Results – WPX Energy, Inc. – slide 11
    Pro Forma WPX Hedges including RKI Updated: August 3, 2015 Jul - Dec 2015 2016 2017 Volume/Day Average Price Volume/Day Average Price Volume/Day Average Price Natural Gas (MMBtu) Fixed Price Swaps 435,929 4.05 302,132 3.83 - -…
  12. Q2 2015 Results – WPX Energy, Inc. – slide 12
    Premier Western Energy Producer PERMIAN BASIN Deep Inventory of High-Return Locations Decades of drillable locations Significant upside potential from downspacing and additional prospective horizons 670,000+ net prospective acres…
  13. Q2 2015 Results – WPX Energy, Inc. – slide 13
    Appendix
  14. Q2 2015 Results – WPX Energy, Inc. – slide 14
    Williston Overview 87,000 net acres Currently operating 1 rig 2nd rig in August, well-to-well contract 3rd rig in November, well-to-well contract 600+ gross drilling locations 520 operated drilling locations 90 non-op locations…
  15. Q2 2015 Results – WPX Energy, Inc. – slide 15
    San Juan Overview 232,000 net acres Oil window: 100,000 acres1 Gas window: 132,000 acres Currently operating 2 rigs 3,900 total gross drilling locations2 Oil window: 400+3 Gas window: 3,5002 DRY GAS Commodity mix Oil window Oil:…
  16. Q2 2015 Results – WPX Energy, Inc. – slide 16
    Piceance Overview 200,000 net acres Currently operating 1 rig 10,000 gross drilling locations Commodity mix1 2% oil 77% natural gas 21% NGLs Available sales outlets San Juan Rockies California MidCon Unbooked deep resource…
  17. Q2 2015 Results – WPX Energy, Inc. – slide 17
    Cost Continue to Trend Lower LOE G&A1 60 80 58 59 70 68 in Millions in Millions 60 56 50 56 54 40 52 18% 50 14% 30 10% Decrease Decrease 51 20 Decrease 48 10 46 0 2Q'14 2Q'15 2Q'14 2Q'15 GP&T Oil Netbacks…
  18. Q2 2015 Results – WPX Energy, Inc. – slide 18
    2014-15 Reported Daily Production 2014 2015 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Total Production Gas (MMcf/d) 795 791 746 742 768 705 675 690 Oil (Mbbl/d) 19.3 23.7 25.8 32.3 25.3 34.6 32.7 33.7 NGLs (Mbbl/d) 17.6 17.9 17.1 15.9…
  19. Q2 2015 Results – WPX Energy, Inc. – slide 19
    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 2.40 38.34 49.64 22.74 20.40 1 Revenue Adjustments (.28)…
  20. Q2 2015 Results – WPX Energy, Inc. – slide 20
    Western Prices Have Increased Relative to Eastern Locations West Basis Strengthening1 East Basis Weakening2 0.50 0.33 0.00 (0.19) (0.24) per MMBtu -0.50 (0.42) -1.00 (1.06) -1.50 (1.76) -2.00 2006 to 2010 2011…
  21. Q2 2015 Results – WPX Energy, Inc. – slide 21
    Mexican Exports to Drive Western Demand Growth Total Current Capacity July 2014, El Paso announced 7.4 Bcf/d 21 Year deal with Mexicos CFE to provide up to 500 MMBtu/d of firm capacity from SJ basin Total Proposed Capacity to…
  22. Q2 2015 Results – WPX Energy, Inc. – slide 22
    San Juan Gallup: Gathering Infrastructure Asset Description WPX built multi-commodity gathering system with multiple market outlets Current crude oil market access to Westerns Gallup, NM refinery and El Paso, TX refinery through…
  23. Q2 2015 Results – WPX Energy, Inc. – slide 23
    Williston: Van Hook Gathering System Whiting CDP Asset Description WPX CDP Site WPX constructed pipe WPX built multiple commodity WPX planned pipe gathering system WPX Leasehold Access to utility grade power Van Hook CDP 2nd…
  24. Q2 2015 Results – WPX Energy, Inc. – slide 24
    Piceance: Water Treatment System Asset Description WPX built produced and completions water handling system Three water treatment facilities located in basin 400 miles of water pipeline infrastructure System designed for 10 + rig…
  25. Q2 2015 Results – WPX Energy, Inc. – slide 25
    Non-GAAP
  26. Q2 2015 Results – WPX Energy, Inc. – slide 26
    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…
  27. Q2 2015 Results – WPX Energy, Inc. – slide 27
    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 (30) 38 Interest expense 29 28 31…

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