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Q3 2020 Earnings Presentation – WPX Energy, Inc.

WPX Energy, Inc. · Nov 3, 2020 · 24 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. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 1
    3Q 2020 EARNINGS CALL RICK MUNCRIEF, CHAIRMAN & CEO NOVEMBER 3, 2020 N Y S E : W P X
  2. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 2
    2nd Half 2020 Highlights Increasing FREE CASH FLOW Expected 2020 free cash flow increasing 50% to 300MM+ Exceeding PRODUCTION TARGETS Current oil rate of 140 Mbbl/d and raising 4Q 2020 guide: 137 - 143 Mbbl/d REDUCING…
  3. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 3
    A Shareholder/Stakeholder Focused Energy Company Announced STRATEGIC Merger of Equals with Devon Energy Accretive on all relevant financial metrics (Combines the best capabilities of both businesses) Accelerates cash-return…
  4. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 4
    A Unique Shareholder Value Proposition True Merger Of Equals offers UNIQUE Benefits To WPX SHAREHOLDERS Enhances FREE CASH FLOW GROWTH potential Well positioned for MULTIPLE EXPANSION given pro forma metrics Significant…
  5. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 5
    Capturing 575MM in Annual Cost Savings INTEGRATION TEAM IN PLACE 32% OF PRO FORMA COMPANY MARKET CAP TO START ACHIEVING SYNERGIES UPON CLOSE PV-10 OF COST SAVINGS 200MM IMPROVEMENT TO OPERATING MARGINS 2.0B Contract labor…
  6. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 6
    OPERATIONS CLAY GASPAR, PRESIDENT & CHIEF OPERATING OFFICER
  7. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 7
    WPX Development of Monument Draw Acreage DELINEATION FOR DIVESTMENT LANDING/CASING/SPACING DIFFERENTLY FELIX DEVELOPMENT PROCESS TIMELINE WPX FUTURE DEVELOPMENT PROCESS 2018: Initial parent well development Primary Target…
  8. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 8
    Continued Improvement in Stateline Recent well in 2ND BONE SAND CBR 9-4 & 10-3 PADS 2ND & 3RD BONE SPRING produced 3,742 BOE/D (62% oil) after DEVELOPMENT OF STATELINE STATELINE ACREAGE 30 days on production 2nd & 3rd BONE…
  9. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 9
    FINANCIALS KEVIN VANN, CHIEF FINANCIAL OFFICER
  10. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 10
    3Q 2020 Results 79MM 13% GROWTH IN OIL VOLUMES 8% GROWTH IN ADJ. EBITDAX FREE CASH FLOW GENERATION 3Q20 vs. 3Q19 3Q20 vs. 3Q19 3Q YTD 2020 2019 2020 2019 Average Daily Production Oil (Mbbl/d) 122.3 108.6 122.7 100.9 Gas…
  11. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 11
    A Stronger Value Proposition D E V O N + W P X HIGH-IMPACT TRANSACTION DELIVERING LONG-TERM 11
  12. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 12
    APPENDIX
  13. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 13
    Return of Capital Accelerated VARIABLE DIVIDEND STRATEGY FIXED QUARTERLY DIVIDEND EFFECTIVE UPON CLOSE OF TRANSACTION Maintained at 0.11 per share Target payout: up to 10% of cash flow STEP 1: VARIABLE DIVIDEND CALCULATION Operating…
  14. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 14
    Positioned for Attractive Free Cash Flow Yields Operations scaled to lower breakeven funding Free cash flow at maintenance capital 2021e pro forma maintenance capital assumptions1 2021e pro forma free cash flow sensitivities OIL…
  15. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 15
    Framework for 2021 Capital Allocation TOP PRIORITIES IN CURRENT MARKET PROTECT financial strength GREATER THAN Evaluate select growth projects 45 Limit reinvestment: up to 5% growth FUND fixed quarterly dividend Prioritize free…
  16. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 16
    Committed to Strong ESG Performance E S G ENVIRONMENTAL SOCIAL GOVERNANCE Facilitating continuous Prioritizing employee & Protecting the long-term improvement contractor safety interests of shareholders Increasing gas capture…
  17. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 17
    Significant Liquidity, No Near-term Maturities SENIOR UNSECURED NOTES (MM) 900 600 472 500 500 242 43 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 INTEREST RATE REVOLVING CREDIT FACILITY MATURITY IN APRIL 2023…
  18. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 18
    Domestic Price Realization for 2020 Oil (/Bbl) Gas (/Mcf) NGL (/Bbl) 1Q 20 2Q 20 3Q 20 1Q 20 2Q 20 3Q 20 1Q 20 2Q 20 3Q 20 Weighted-Average Sales 42.13 21.85 38.97 1.61 1.40 1.66 8.72 7.65 12.43 Price Revenue Adjustments1 (0.30)…
  19. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 19
    WPX Financial Hedges Updated: November 2, 2020 Oct-Dec 2020 2021 2022 Volume/Day Average Price Volume/Day Average Price Volume/Day Average Price Crude Oil (Bbl) Fixed Price Swaps1, 2 91,800 53.06 64,878 41.35 25,000 43.79 Fixed…
  20. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 20
    Consolidated Statement of Operations (GAAP) 2019 2020 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr YTD Revenues: Product revenues: Oil sales 449 511 539 551 2,050 465 241 436 1,142 Natural gas…
  21. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 21
    Reconciliation-Adjusted Income (Loss) from Continuing Operations (Non-GAAP) 2019 2020 (Dollars in millions, except per share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr YTD Reconciliation of adjusted income…
  22. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 22
    Reconciliation-Adjusted Income (Loss) Per Common Share 2019 2020 (Dollars in millions, except per share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr YTD Reconciliation of adjusted diluted income (loss) per…
  23. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 23
    Reconciliation Adjusted EBITDAX (Non-GAAP) 2019 2020 (Dollars in millions, except per share amounts) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr YTD Reconciliation of Adjusted EBITDAX Net income (loss) - reported…
  24. Q3 2020 Earnings Presentation – WPX Energy, Inc. – slide 24
    Reconciliation of Free Cash Flow 2019 2020 (Dollars in millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr 3rd Qtr YTD Reconciliation of free cash flow: Net cash provided by operating activities (GAAP) 272 362 272 351…

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