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4Q and Year End 2014 Update – WPX Energy, Inc.

WPX Energy, Inc. · Feb 26, 2015 · 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. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 1
    February 26, 2015 4Q and Year-End 2014 Update Rick Muncrief, Chief Executive Officer
  2. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 2
    2014 A Year in Review Transforming WPX Outlined multi-year strategy New culture emerging Organizational realignment Focused on margins Commodity mix Relentless focus on cost Executed transactions resulting in over 1B in proceeds…
  3. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 3
    Operational Results Clay Gaspar, SVP Operations and Resource Development
  4. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 4
    2014 Highlights 2012-14 Production (San Juan Gallup and Williston) Cash Margin per BOE 30 16 25 14 12 20 10 Mboe/d /boe 15 8 10 6 4 5 2 - 0 2012 2013 2014 2012 2013 2014 Williston San Juan Record oil production of…
  5. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 5
    2015 Operational Objectives are Key to Achieving Our 20/20 Vision Technical Excellence Culture Structural Cost of Prudent Improvements Risk Taking Cyclical Cost Improvements WPX Operational Update February 26, 2015…
  6. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 6
    San Juan Basin Leader in Efficiency and Resource Assessment Execution drives strong production growth Gallup averaged 10.6 Mboe/d in 4Q 14 Oil production up 388% 4Q 14 vs. 4Q 13 2014 activity Completed 47 gross wells averaging 2.25…
  7. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 7
    Williston Contiguous Acreage Position in Core of Play Strong production growth in 2014 Averaged 27 Mboe/d in 4Q 14 Mboe/d up 59% 4Q 14 vs. 4Q 13 2014 activity Completed 53 gross operated wells Average spud-to-rig release time…
  8. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 8
    Piceance Proven Low-Cost Operator with Large Resource Base 1 gas producer in Colorado Multi-decade inventory Lowest-cost operator Unbooked resource potential Niobrara/Mancos 2014 activity Increased focus in Ryan Gulch Reduced…
  9. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 9
    Financial Results Kevin Vann, Chief Financial Officer
  10. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 10
    4th-Quarter and Annual Results 4Q YTD Dollars in millions, except production numbers 2014 2013 2014 2013 Daily Production Gas (MMcf/d) 742 790 768 811 Oil (Mbbl/d) 32.3 18.9 25.3 16.2 NGLs (Mbbl/d) 15.9 19.7 17.1 20.3 Equivalent…
  11. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 11
    2015 Full-Year and 1st-Quarter Guidance Production 1Q FY 2015 Expenses 1Q FY 2015 Natural Gas MMcf/d 650 - 680 615 - 650 per Boe Oil Mbbl/d 31.3 - 31.9 29.1 - 30.3 LOE 4.00 - 5.00 4.00 - 5.00 NGL Mbbl/d1 14.9 - 15.9 14.7 - 15.3 DD&A…
  12. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 12
    Hedging Overview As of 2/23/2015 2015 2016 Volume/Day Average Price Volume/Day Average Price Natural Gas (MMBtu) Fixed Price Swaps1 442,055 4.10 280,000 3.81 Costless Collars 50,000 4.00 - 4.50 - - Natural Gas Basis (MMBtu)…
  13. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 13
    Positioned for Success in 2015 and Beyond Execution Focus Discipline Opportunistic WPX Operational Update February 26, 2015 13
  14. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 14
    Appendix
  15. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 15
    San Juan Overview 211,141 net acres Oil window: 85,000 acres1 Gas window: 134,000 acres Operating 2.3 rigs in 2015 3,900 total gross drilling locations2 Oil window: 4003 Gas window: 3,5002 DRY GAS Commodity mix Oil window Oil:…
  16. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 16
    Williston Overview 85,483 net acres Operating 1.4 rigs in 2015 610 gross drilling locations 523 operated drilling locations 87 non-op locations Commodity mix 87% oil 7% natural gas 6% NGLs Available sales outlets Clearbrook,…
  17. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 17
    Piceance Overview 196,149 net acres Operating 3.5 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…
  18. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 18
    2013-14 Reported Daily Production 2013 Avg 2014 Avg 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Total Production Gas (MMcf/d) 822 811 821 790 811 795 791 746 742 768 Oil (Mbbl/d) 13.8 15.1 17.1 18.9 16.2 19.3 23.7 25.8 32.3 25.3 NGLs…
  19. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 19
    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 4.84 4.00 3.30 3.55 49.14 44.18 43.42 33.68 88.40 88.94 84.76…
  20. 4Q and Year End 2014 Update – 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 (0.18) (0.27) (0.34) per MMBtu -0.50 -1.00 (1.01) -1.50 (1.76) -2.00 2007 to 2010…
  21. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 21
    Strong Western Supply/Demand Fundamentals Through 2019 Northwest 2.0 Bcf/d Demand demand increase +2.0 Bcf/d through 2019 Rockies and Southwest San Juan Basin production flat to declining 0.5 Bcf/d Demand +0.5 through 2019…
  22. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 22
    Our Transport Costs are Decreasing While Northeast Producers are Increasing WPX Northeast Producer 1 Northeast Producer 2 500,000 450,000 400,000 350,000 Transportation Costs (/MM) 300,000 250,000 200,000 150,000…
  23. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 23
    Domestic Production Normalized Growth 2014 Normalized vs. 2015 Midpoint Equivalent production expected to be down by 4% Oil production expected to be up by 15 - 20% Production Growth Excluding Legacy, Powder River, NE PA and…
  24. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 24
    Piceance Basin C O LO R A D O WPX Operational Update February 26, 2015 24
  25. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 25
    Williston Basin N O R T H D A KOTA WPX Operational Update February 26, 2015 25
  26. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 26
    San Juan Basin DRY GAS WET GAS OIL WPX Operational Update February 26, 2015 26
  27. 4Q and Year End 2014 Update – WPX Energy, Inc. – slide 27
    Non-GAAP
  28. 4Q and Year End 2014 Update – 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. 4Q and Year End 2014 Update – 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) 66 219 171 Interest…

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