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3Q 2015 Results – WPX Energy, Inc.

WPX Energy, Inc. · Nov 5, 2015 · 32 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. 3Q 2015 Results – WPX Energy, Inc. – slide 1
    November 5, 2015 3Q 2015 Results Rick Muncrief, President and CEO
  2. 3Q 2015 Results – WPX Energy, Inc. – slide 2
    WPX in Transition WPX Energy 3Q'15 Earnings Call November 5, 2015 2
  3. 3Q 2015 Results – WPX Energy, Inc. – slide 3
    Highlights Over Past 18 Months Renegotiated 1.75B Completed exit of unsecured revolver Infill project added 200 international assets July, 2015 gross locations in January, 2015 Williston Rick Muncrief August, 2014 becomes CEO…
  4. 3Q 2015 Results – WPX Energy, Inc. – slide 4
    Foundation for Exceptional Growth in Place QUALITY QUANTITY FLEXIBILITY FOCUS Core Permian 4,600+ oil locations1 Strong liquidity Embracing rapid change Multi-decade inventory Capital flexibility Operational excellence Core…
  5. 3Q 2015 Results – WPX Energy, Inc. – slide 5
    Financial Results Kevin Vann, Chief Financial Officer
  6. 3Q 2015 Results – WPX Energy, Inc. – slide 6
    3rd Quarter and YTD Results 3Q YTD Dollars in millions, except production numbers 2015 2014 2015 2014 Daily Production Gas (MMcf/d) 665 746 681 777 Oil (Mbbl/d) 35.2 25.8 34.2 23.0 NGLs (Mbbl/d) 21.3 17.1 19.3 17.5 Equivalent…
  7. 3Q 2015 Results – WPX Energy, Inc. – slide 7
    2015 Full-Year Guidance1 Production Prior Guidance Current Guidance Expenses Prior Guidance Current Guidance Natural Gas MMcf/d 660 - 675 665 - 680 per Boe Oil Mbbl/d 35.0 - 36.5 35.0 - 36.5 LOE 3.75 - 4.25 3.50 - 4.00 NGL Mbbl/d2…
  8. 3Q 2015 Results – WPX Energy, Inc. – slide 8
    WPX Hedges Updated: November 3, 2015 Oct - Dec 2015 2016 2017 Volume/Day Average Price Volume/Day Average Price Volume/Day Average Price Natural Gas (MMBtu) Fixed Price Swaps 435,107 4.06 412,132 3.63 92,500 3.22 Costless Collars…
  9. 3Q 2015 Results – WPX Energy, Inc. – slide 9
    Operational Results Clay Gaspar, Chief Operating Officer
  10. 3Q 2015 Results – WPX Energy, Inc. – slide 10
    Permian: Deep Inventory of High-Return Locations Improving efficiencies 1st three rotary steerable wells reduced spud to TD by average of 9 days Average days to TD reduced 25%1 High-graded rig fleet and reduced day rates 8% 2 per…
  11. 3Q 2015 Results – WPX Energy, Inc. – slide 11
    Permian: Initial Results Above Acquisition Type Curve 250 250,000 200 200,000 Cumulative, Mboe 150,000 150 100,000 100 50,000 50 00 0 50 100 150 200 250 Days of Production (Post Cleanout) Normalized…
  12. 3Q 2015 Results – WPX Energy, Inc. – slide 12
    Permian: Strong Well Results Validate Core Position WPX EOG EOG EOG EOG EOG RDX 10-5H STATE MERCURY 1H STATE MERCURY 11H STATE MAGELLAN 7H STATE PATHFINDER 5H STATE PATHFINDER 4H BELL CANYON Max Day: 1,443 Boepd IP(30): 1,490 bopd…
  13. 3Q 2015 Results – WPX Energy, Inc. – slide 13
    Williston: Costs Down with Performance Increasing Operating costs trending lower1 54% reduction in LOE Mandaree Pad 52% improvement in oil differentials Improving efficiencies Coil tubing, 250k savings per well Redesigned pad…
  14. 3Q 2015 Results – WPX Energy, Inc. – slide 14
    Williston: Early Results From Larger Stimulations - Mandaree Pad 100,000 100 90 90,000 80,000 80 Cumulative Production, Mboe 70,000 70 60,000 60 50 50,000 40 40,000 30 30,000 20 20,000 10,000 10 00 0 10…
  15. 3Q 2015 Results – WPX Energy, Inc. – slide 15
    San Juan Gallup: Organic Growth and Value Creation Oil Differentials Y/Y Oil production increased 167%1 - (2.00) Operating costs trending lower (4.00) 46% Oil differentials improve 46%1 (6.00) IMPROVEMENT (7.70) (8.00) LOE per Boe…
  16. 3Q 2015 Results – WPX Energy, Inc. – slide 16
    Piceance: Large-Scale Resource with Deep Potential Valley - Large Volume Frac and Enhanced Perforating Rapidly moving to unlock Piceance basin value Cumulative Production, BCF 0.15 Williams Fork improvements Valley and Highlands…
  17. 3Q 2015 Results – WPX Energy, Inc. – slide 17
    Whats Important Operating within cashflow second half of 20151 On track to achieve 2015 divestiture target2 Estimated YE15 net debt to adjusted EBITDAX of 3.0x -3.2x Aggressively testing new technical concepts Strong hedge positions…
  18. 3Q 2015 Results – WPX Energy, Inc. – slide 18
    Appendix
  19. 3Q 2015 Results – WPX Energy, Inc. – slide 19
    WPX Portfolio 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 WILLISTON BASIN…
  20. 3Q 2015 Results – WPX Energy, Inc. – slide 20
    Cost Continue to Trend Lower LOE G&A1 4.50 5.00 4.50 3.75 4.05 4.61 4.00 per Boe per Boe 3.00 3.50 3.27 3.47 3.00 2.25 19% 2.50 25% Decrease 2.00 Decrease 1.50 1.50 0.75 1.00 0.50 0.00 - 3Q'14 3Q'15 3Q'14…
  21. 3Q 2015 Results – WPX Energy, Inc. – slide 21
    Permian Overview 92,000 net acres Currently operating 4 rigs 3 rigs running in Wolfcamp 1 rig in Delaware Sands/Bone Spring 3,600 gross risked locations Commodity mix1 52% oil 31% natural gas 17% NGLs Available sales outlets…
  22. 3Q 2015 Results – WPX Energy, Inc. – slide 22
    Williston Overview 87,000 net acres Currently operating 2 rigs 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,…
  23. 3Q 2015 Results – WPX Energy, Inc. – slide 23
    San Juan Overview 232,000 net acres Oil window: 100,000 acres1 Gas window: 132,000 acres Currently operating 1 rig 3,900 total gross drilling locations2 Oil window: 400+3 Gas window: 3,5002 DRY GAS Commodity mix Oil window Oil:…
  24. 3Q 2015 Results – WPX Energy, Inc. – slide 24
    Piceance Overview 200,000 net acres Currently operating 1 rig 11,000 gross drilling locations Commodity mix1 2% oil 77% natural gas 21% NGLs Available sales outlets San Juan Rockies California MidCon Unbooked deep resource…
  25. 3Q 2015 Results – WPX Energy, Inc. – slide 25
    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 2.69 38.34 49.64 40.10 22.74 20.40 17.87 1 Revenue…
  26. 3Q 2015 Results – WPX Energy, Inc. – slide 26
    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…
  27. 3Q 2015 Results – WPX Energy, Inc. – slide 27
    Permian: Infrastructure Capacity in Place for Rapid Development Produced water disposal system 174 miles of pipeline 200,000 barrels per day of water disposal capacity Current disposal: 90,000 bpd Fresh water transfer system 16…
  28. 3Q 2015 Results – WPX Energy, Inc. – slide 28
    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…
  29. 3Q 2015 Results – WPX Energy, Inc. – slide 29
    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…
  30. 3Q 2015 Results – WPX Energy, Inc. – slide 30
    Non-GAAP
  31. 3Q 2015 Results – WPX Energy, Inc. – slide 31
    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…
  32. 3Q 2015 Results – WPX Energy, Inc. – slide 32
    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) (230) (192) Interest expense…

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