3rd Quarter Earnings Call - WPX Energy
November 5, 2014
3rd Quarter Earnings Call Rick Muncrief, Chief Executive Officer
Disclaimer The information contained in this summary has been prepared to assist you in making your own evaluation of the Company and does not purport to contain all of the information you may consider important in deciding whether to invest in shares of the Company’s common stock. In all cases, it is your obligation to conduct your own due diligence. All information contained herein, including any estimates or projections, is based upon information provided by the Company. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation but should not be relied upon as an accurate representation of future results. No persons have been authorized to make any representations other than those contained in this summary, and if given or made, such representations should not be considered as authorized. Certain statements, estimates and financial information contained in this summary constitute forward-looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the results implied or expressed in such forward-looking statements or information. While presented with numerical specificity, certain forward-looking statements or information are based (1) upon assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, competitive uncertainties, contingencies and risks including, without limitation, the ability to obtain debt and equity financings, capital costs, construction costs, well production performance, operating costs, commodity pricing, differentials, royalty structures, field upgrading technology, and other known and unknown risks, all of which are difficult to predict and many of which are beyond the Company's control, and (2) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the results implied or expressed in such forward-looking statements or information or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the results implied or expressed in such forward-looking statements or information. Under no circumstances should the inclusion of the forward-looking statements or information be regarded as a representation, undertaking, warranty or prediction by the Company or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that the Company will achieve or is likely to achieve any particular results. The forward-looking statements or information are made as of the date hereof and the Company disclaims any intent or obligation to update publicly or to revise any of the forward-looking statements or information, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein.
WPX 3rd Quarter Earnings Call | November 5, 2014
2
Reserves Disclaimer The SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. We have elected to use in this presentation “probable” reserves and “possible” reserves, excluding their valuation. The SEC defines “probable” reserves as “those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.” The SEC defines “possible” reserves as “those additional reserves that are less certain to be recovered than probable reserves.” The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC’s reserves reporting guidelines. Investors are urged to consider closely the disclosure regarding our business that may be accessed through the SEC’s website at www.sec.gov. The SEC’s rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.
WPX 3rd Quarter Earnings Call | November 5, 2014
3
3rd Quarter Highlights Domestic oil production of 25.8 Mbbl/d, which grew 52% 3Q ’14 vs. 3Q ’13 Current domestic oil production rate of 29.0 Mbbl/d
Oil and liquids accounted for 56% total domestic production revenues ► YTD ’14 shows 40% increase in domestic oil revenues Cash flow from operations grew 50% through YTD 3Q ’14 vs. 3Q ’13 In fewer than 18 months after initial production, San Juan sold its one millionth net barrel of oil ► Averaging 1+ rigs High-grading our portfolio continues
WPX 3rd Quarter Earnings Call | November 5, 2014
4
Domestic Production – Normalized Growth 4Q ’14 Domestic Growth vs. 4Q ’13 ► ►
Equivalent production expected to be up by 9% Oil production expected to be up by +60%
Production Growth Excluding Legacy, Powder River and International 1200 1000 800 600 400 200 0 4Q ’13
1Q ’14
Oil
2Q ’14
NGLs/Natural Gas
3Q ’14
4Q ’14
Midpoint Guidance
WPX 3rd Quarter Earnings Call | November 5, 2014
5
Williston Efficiencies Driving Performance Continued strong production growth ►
Averaged 20.1 Mbbl/d in 3Q ’14
►
Oil production up 44% 3Q ’14 vs. 3Q ’13
Average Drilling Cost per Foot $350
Larger stimulations exceeding blended infill EUR type curve1
$300
Ruby 31-30HX exceeds type curve by 25 Mbo, or 53% in the first 86 days2
$250
Alfred Old Dog 30-31HD exceeds type curve by 13.8 Mbo, or 35% in the first 67 days2
$200
►
►
►
Morsette 35-26HD exceeds type curve by 21.7 Mbo, or 74% in the first 47 days2
Relentless focus on cost controls ►
Drilling and completion
►
Facilities design
►
Lease operating expense
$305
$236
$184 $150
$100
$50
$1 Blended
infill Middle Bakken and Three Forks type curve using 3MM-pound stimulations. 2 Days of production post clean out.
2012
2013
2014
WPX 3rd Quarter Earnings Call | November 5, 2014
6
Larger Completions Accelerating Production and Increasing Returns 80,000 70,000
Cumulative Barrels of Oil
60,000 50,000 40,000 30,000 20,000 10,000
0 0
30
60
90
Days After Clean Out RUBY 31-30HX (3F) RUBY 31-30HW (3F) MORSETTE 35-26HD (MB) MORSETTE 35-26HX (MB) 2015 BLENDED TYPE CURVE 3MM# Proppant
RUBY 31-30HA (MB) ALFRED OLD DOG 30-31HD(MB) MORSETTE 35-26HZ (3F) ALFRED OLD DOG 19-18HD (MB)
WPX 3rd Quarter Earnings Call | November 5, 2014
7
San Juan Gallup Accelerating Production Growth Rapidly growing oil production
12
26.9
10 5
16.2
0
►
►
Expected in-service date of 3Q ’15 Close proximity to premium West Coast markets and easy access to Gulf Coast Additional capacity available as basin production grows
6
4 2 0
7.0
6.0
6.0 5.0
MBOE per day
►
12.6
San Juan Gallup Production (MBOE per day)
Spud first WPX-operated 7,500′ lateral
Signed 5-year 10,000 bbl/d rail deal at a planned unit train facility
8
14.7
1Q-2013 2Q-2013 3Q-2013 4Q-2013 1Q-2014 2Q-2014 3Q-2014
Acquired two 7,500′ laterals drilled by 3rd party ►
16.3
Avg Rig Ct 2.3
15
16.6
Avg Rig Ct 2.0
20
10 Well Count
25
Avg Rig Ct 1.6
►
Increasing spuds from 40 to 48 in 2014 Record spud-to-rig release of 9.5 days with a TD of 10,390′
30
Avg Rig Ct 1.0
►
14
Spud to Release
Avg Rig Ct 1.0
Added 3rd rig in Gallup
35
16
38.9
Avg Rig Ct 1.0
►
40
Avg Rig Ct 1.0
►
Averaged 3.9 Mbbl/d in 3Q ’14 Oil production up 255% 3Q ’14 vs. 3Q ’13 Oil production up 30% 3Q ’14 vs. 2Q ’14 Days
►
Mancos Gallup Drilling Metrics by Quarter
3.8
4.0 3.0 2.0
1.7
2.2
1.0 0.0 4Q '13
1Q '14
2Q '14
3Q '14
WPX 3rd Quarter Earnings Call | November 5, 2014
8
Piceance: Ryan Gulch Efficiencies and Deep Resource Assessment 3rd quarter activity ► ►
Spud 70 wells in 3Q Spud 209 wells 3Q YTD
3rd quarter net production 640 MMcfe/d ► ► ►
Natural gas 542 MMcf/d NGL 14.5 Mbbl/d Oil 1.7 Mbbl/d
► ►
Drilled 1st Ryan Gulch vertical deep well test Record well drilled 8.1 days ►
►
31% improvement from 2013 average of 11.8 days
(2,500 ft)
Iles (650 ft)
Sego (600 ft)
Loyd (625 ft)
Castlegate (650 ft)
Mancos B
Niobrara update ►
Parachute horizontal test drilled and completed ►
►
Peak rate of 14 MMcfe/d @ 7,200 psi
Testing additional intervals in the Mancos Group
Deep resource assessment – Niobrara/Mancos ► ►
(1,100 ft)
Niobrara
(5,000 ft)
Water disposal costs decreased from $2.55/bbl to $0.64/bbl in 2014
Mancos/Niobrara Group
Highlights from Ryan Gulch
Lower Williams Fork
(1,430 ft)
Stacked-pay potential Testing new fields – Ryan Gulch
WPX 3rd Quarter Earnings Call | November 5, 2014
9
Financial Results Kevin Vann, Chief Financial Officer
3rd Quarter Results 3Q
YTD Avg
2014
2013
2014
2013
Gas (MMcf/d)
766
839
797
835
Oil (Mbbl/d)
32.3
22.3
28.6
21.0
NGLs (Mbbl/d)
17.5
20.1
18.0
21.0
Equivalent (MMcfe/d)
1,065
1,094
1,076
1,087
Adjusted EBITDAX
230
174
797
564
Adjusted Net Income (Loss) from Continuing Operations
(4)
(80)
30
(173)
Capital Expenditures
597
295
1,325
843
Dollars in millions, except production numbers
Daily Production
Note: Adjusted EBITDAX and adjusted net income are non-GAAP measures. A reconciliation to relevant measures included in GAAP is provided in this presentation.
WPX 3rd Quarter Earnings Call | November 5, 2014
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2014 Full-Year Domestic Guidance – Excludes Powder River and International Production Natural Gas MMcf/d Oil Mbbl/d NGL Mbbl/d Total MMcfe/d
Cap Ex ($ in Millions)
% of Net Realized Price3
Previous
Current
755 - 775 24.2 - 25.8 17.0 - 18.07 1,002 - 1,038
Natural Gas - NYMEX Oil - WTI NGL - OPIS/Mt Belvieu
80% - 86% 81% - 87% 76% - 80%
80% - 86% 83% - 89% 76% - 80%
Current
Expenses
Previous
Current
$0.73 - $0.75 1.95 - 2.00 0.92 - 0.97 0.63 - 0.67 0.42 - 0.46
$0.67 - $0.70 2.15 - 2.20 0.89 - 0.94 0.71 - 0.75 0.38 - 0.42
($25) - ($35) 85 - 95 125 - 130 (20) - (25)
($25) - ($35) 120 - 130 125 - 130 –
Previous
Disc. Ops
Current
920 - 950 30.2 - 32.0 18.0 - 19.0 1,209 - 1,256
(170) (6.1) (0.4) (209)
Previous
Growth Basins Piceance Williston San Juan Gallup Other Appalachia Other1 Land Exploration Total Domestic International2 Total Capital6
$475 - $495 640 - 650 210 - 220
$475 - $495 630 - 660 280 - 290
20 - 30 10 - 15 75 - 85 40 - 45 $1,470 - $1,540 90 - 100 $1,560- $1,640
20 - 30 10 - 15 75 - 85 40 - 45 $1,530 - $1,620 – $1,530 - $1,620
Number of Rigs
Previous
Current
6 2 1 9 5 2 16
6 2 1 9 5 3 17
Piceance Valley Piceance Highlands Piceance Niobrara Total Piceance Williston San Juan Gallup Total Rigs
$ per Mcfe LOE DD&A GP&T SG&A Production Tax $ in Millions Gas Management (Inc)/Exp4 Exploration Interest Expense Equity (Earnings) Loss
Tax Rate
Previous
Current
Tax Provision5
33% - 37%
33% - 37%
1 Other
includes expenditures for Powder River and other basins. is a self-funded entity and does not receive any cash from WPX Energy. 3 Percentage of realized price ranges for NYMEX, WTI and OPIS excludes hedges, but includes basis differential and revenue adjustments. 4 Gas Management impact is net of revenues and expenses, and includes unutilized transport capacity. Includes impact of realized hedges on non-equity production. 5 Excludes impact of $9MM tax expense accrual for new legislation in 1Q ’14. 6 Excludes acquisition capital. 7 Current guidance assumes lower ethane recovery levels than the previous guidance. 2 International
WPX 3rd Quarter Earnings Call | November 5, 2014
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WPX Executing on 20/20 Vision High-grading our portfolio continues
Cash flow from operations grew 50% through YTD 3Q ’14 vs. 3Q ’13 Rockies Express transportation deal rolling off mid-November ►
More than $100MM in EBITDAX improvement
Strong balance sheet ►
► ►
Enables flexibility in lower commodity price environment Provides ability to be opportunistic New $1.5B credit facility through 2019
2015 guidance released by early December
WPX 3rd Quarter Earnings Call | November 5, 2014
13
Appendix
2013-14 Daily Production 1Q
2Q
2013 3Q
4Q
Avg Total
1Q
2Q
2014 3Q
Avg Total
Gas (MMcf/d)
822
811
821
790
811
795
791
746
777
Oil (Mbbl/d)
13.8
15.1
17.1
18.9
16.2
19.3
23.7
25.8
23.0
NGLs (Mbbl/d)
21.2
20.8
19.7
19.7
20.3
17.6
17.9
17.1
17.5
MMcfe/d
1,032
1,026
1,041
1,021
1,030
1,016
1,040
1,003
1,020
Gas (MMcf/d)
17
18
19
19
18
19
20
21
20
Oil (Mbbl/d)
5.6
6.1
5.3
5.3
5.6
5.2
5.2
6.5
5.6
NGLs (Mbbl/d)
0.5
0.5
0.5
0.4
0.5
0.5
0.4
0.4
0.4
MMcfe/d
53
57
53
53
54
53
54
62
56
Gas (MMcf/d)
839
829
839
809
829
814
811
766
797
Oil (Mbbl/d)
19.4
21.2
22.3
24.2
21.8
24.5
28.9
32.3
28.6
NGLs (Mbbl/d)
21.6
21.3
20.1
20.1
20.8
18.1
18.3
17.5
18.0
MMcfe/d
1,085
1,083
1,094
1,074
1,084
1,069
1,095
1,065
1,076
Domestic Production
International Production
Total Production
Note: Excludes discontinued operations (Powder River production)
WPX 3rd Quarter Earnings Call | November 5, 2014
15
Hedging Overview
As of 10/28/2014
Balance of 20141 Volume/Day Average Price
2015 Volume/Day
Average Price
Natural Gas (MMBtu) Fixed Price Swaps2
315,000
$4.19
272,055
$4.31
Costless Collars
190,000
$4.04 - $4.66
50,000
$4.00 - $4.50
Dominion Basis Swaps
38,750
($0.73)
MidCon Basis Swaps
30,000
($0.19)
12,500
($0.16)
Rockies Basis Swaps
142,500
($0.15)
150,000
($0.11)
San Juan Basis Swaps
255,000
($0.15)
85,000
($0.10)
SoCal Basis Swaps
72,500
$0.13
20,000
$0.18
14,975
$96.01
20,236
$94.88
Ethane Swaps
3,261
$0.29
Propane Swaps
489
$1.17
Isobutane Swaps
652
$1.37
Normal Butane Swaps
652
$1.34
1,630
$2.06
Natural Gas Basis (MMBtu)
Crude Oil (bbl) Fixed Price Swaps2 Natural Gas Liquids (bbl)3
Natural Gasoline Swaps 1
Balance of 2014 is October - December. connection with several natural gas and crude oil swaps, we entered into swaptions with the swap counterparties granting the counterparty the right, but not the obligation, to enter into an underlying swap with us in the future. 3 All Natural Gas Liquids swaps are priced at Mont Belvieu. 2 In
WPX 3rd Quarter Earnings Call | November 5, 2014
16
Domestic Price Realization for 2014 Gas ($/Mcf) 1Q ’14
2Q ’14
3Q ’14
Weighted-Average Sales Price
$4.84
$4.00
Revenue Adjustments1
(0.42)
NGL ($/bbl) 1Q ’14
2Q ’14
3Q ’14
1Q ’14
2Q ’14
3Q ’14
$3.30
$49.14
$44.18
$43.42
$88.40
$88.94
$84.76
(.34)
(.38)
(10.87)
(10.60)
(9.78)
(2.16)
.30
(.65)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$4.42
$3.66
$2.92
$38.27
$33.58
$33.64
$86.24
$89.24
$84.11
Realized Portion of Derivatives Not Designated as Hedges(3)
(0.63)
(.13)
.15
(0.48)
(.30)
.66
(2.30)
(3.40)
(.70)
Net Price Including All Derivatives
$3.79
$3.53
$3.07
$37.79
$33.28
$34.30
$83.94
$85.84
$83.41
1Q ’14
2Q ’14
3Q ’14
Impact of Rockies Sale-for-Resale Contract Expires in Nov. ’14
$(0.38)
$(0.40)
$(0.61)
Weighted-Average Sales Price Excluding Rex
$4.17
$3.93
$3.68
Hedge Impact
Net Price
(2)
4Q ’14
Oil ($/bbl) 4Q ’14
4Q ’14
4Q ’14
3Q: Rockies sale-for-resale agreement impacted net realized gas price ($0.61). Contract expires in November 2014.
1 Natural
gas revenue adjustments are primarily related to field compression fuel. NGL revenue adjustments include T&F and revenue sharing. Of the oil revenue adjustments, gathering deductions represent $(1.25).
2 “Net
Price” equals income statement product revenues by commodity, divided by volume.
3 Represents
the realized cash flows that occurred during each quarter, which are attributable to derivatives that were not designated as hedges for accounting purposes.
WPX 3rd Quarter Earnings Call | November 5, 2014
17
Piceance Basin
Mesaverde Rigs
Niobrara Dedicated Rig
WPX 3rd Quarter Earnings Call | November 5, 2014
18
Williston Basin
WPX-operated rig
WPX 3rd Quarter Earnings Call | November 5, 2014
19
Williston Netback Price Analysis Sales Outlets
Estimated Volume % (Oct - Dec 2014)
Basin-Priced Sales
58%
Rail Deals
30%
Enbridge Capacity
12%
Total Sales Outlets
100%
Assumed 4Q 2014 total netback of WTI less $12 - $13 per barrel Our current sales agreements consist of the following: ► ► ►
Basin sales: Arrow CDP WASP and lease sales Rail: Receive Gulf, West and East Coast pricing Enbridge: Receive Clearbrook, Minn., price
Our sales agreements in 2014-16 are expected to consist of the following: ► ► ► ►
Basin sales: Receive a basket price from sales to third-party marketers Rail: Receive Gulf, West and East Coast pricing less associated fees Enbridge: Receive Clearbrook, Minn., price less associated transportation fees Unit train rail options: WPX has up to 9,250 bbl/d of committed rail capacity until mid-2016, receiving West, East or Gulf Coast pricing less associated transportation fees
WPX 3rd Quarter Earnings Call | November 5, 2014
20
San Juan Basin
WPX 3rd Quarter Earnings Call | November 5, 2014
21
Non-GAAP
WPX Non-GAAP Disclaimer This presentation may include certain financial measures, including adjusted EBITDAX (earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses), that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. This presentation is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are widely accepted financial indicators used by investors to compare a company’s performance. Management believes that these measures provide investors an enhanced perspective of the operating performance of the company and aid investor understanding. Management also believes that these non-GAAP measures provide useful information regarding our ability to meet future debt service, capital expenditures and working capital requirements. These non-GAAP financial measures should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.
WPX 3rd Quarter Earnings Call | November 5, 2014
23
Reconciliation-Adjusted Income (Loss) from Continuing Operations (Unaudited) 2013 (Dollars in millions, except per share amounts)
1Q
2Q
Income (loss) from continuing operations attributable to WPX Energy, Inc. available to common stockholders
$ (110)
$
Income (loss) from continuing operations – diluted earnings per share
$(0.55)
2014
3Q
4Q
Year
1Q
2Q
3Q
14
$ (106)
$ (876) $ (1,078)
$
$ 0.07
$(0.53)
$(4.36)
$(5.38)
$
$1,169
$1,188
4Q
YTD
1
$ (143)
$
57
$ (85)
$ 0.01
$ (0.71)
$ 0.28
$ (0.42)
Pre-tax adjustments: Impairment of producing properties, costs of acquired unproved reserves, leasehold and equity method investment (1) Impairments – exploratory related Loss on sale of working interests in the Piceance Basin Expense related to Early Exit Program Early rig-release expenses Costs related to chief executive officer separation Buyout of transportation agreement Unrealized MTM (gain) loss
$
-
$
-
19
$
-
$
-
$
-
$
-
$
-
$
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
$
-
$
-
$
-
$
$
-
$
-
$
-
$
4
$
-
$
-
$
-
$
9
$
-
$
-
$
-
$
-
$
40
$
22
$
-
$
-
$ 195
$
1
$ 196
-
$
-
$
-
$
2
$
8
$
10
-
$
-
$
-
$
-
$
6
$
6
$
4
$
-
$
-
$
-
$
-
$
9
$
-
$
-
$
-
$
-
$
-
$ (133)
$ (106)
$
62
$ 103
$ (98)
$
13
$
89
$ 107
$
27
Total pre-tax adjustments
$ 103
$ (98)
$
32
$1,271
$1,308
$
27
$ 237
$ (96)
$ 168
Less tax effect for above items
$ (38)
$
$ (12)
$ (463)
$ (477)
$
(10)
$ (87)
$
$ (62)
36
Impact of new Argentine capital tax law (1)
$
-
$
-
Impact of new state tax law in New York (net of federal benefit)
$
-
$
-
$ $
6
$
-
-
$
-
$ $
6
$
35
-
$
-
$
-
$
-
$
-
-
$
9
$ $
9
Total adjustments, after-tax
$
65
$ (62)
$
26
$ 808
$ 837
$
26
$ 150
$ (61)
$ 115
Adjusted income (loss) from continuing operations available to common stockholders
$ (45)
$ (48)
$ (80)
$ (68)
$ (241)
$
27
$
$
$
Adjusted diluted earnings (loss) per common share
$(0.22)
$(0.24)
$(0.39)
$(0.35)
$(1.20)
$ 0.13
$ 0.03
$(0.02)
$ 0.14
199.9
203.8
200.7
200.9
200.4
205.2
202.7
207.5
202.5
Diluted weighted-average shares (millions)
7
(4)
30
(1) These items are presented net of amounts attributable to noncontrolling interests. WPX 3rd Quarter Earnings Call | November 5, 2014
24
Reconciliation – EBITDAX (Unaudited) 2013 (Dollars in millions)
1Q
2Q
3Q
2014 4Q
YTD
1Q
2Q
3Q
4Q
YTD
Adjusted EBITDAX Reconciliation to net income (loss): Net income (loss)
Interest expense Provision (benefit) for income taxes Depreciation, depletion and amortization Exploration expenses EBITDAX Impairment of producing properties, costs of acquired unproved reserves and equity investments Loss on sale of working interests in the Piceance Basin Net (gain) loss on derivatives not designated as hedges Net cash received (paid) related to settlement of derivatives not designated as hedges (Income) loss from discontinued operations Adjusted EBITDAX
$ (113)
$
22 $ (116) $ (984) $ (1,191)
$ 19 $ (133)
$
66
$
(48)
26
28
28
26
108
29
28
31
88
(59)
9
(29)
(514)
(593)
15
(74)
28
(31)
217
215
230
230
892
203
211
213
627
18
20
21
371
430
15
57
29
101
89
294
134
(871)
(354)
281
89
367
737
–
–
19
864
883
–
–
–
–
–
–
–
–
–
–
195
1
196
94
(78)
15
93
124
195
17
(148)
64
9
(20)
(2)
(4)
(17)
(168)
(17)
15
(170)
6
(4)
8
97
107
(17)
(8)
(5)
(30)
$ 198
$ 192
$ 174
$ 179
$ 743
$ 291
$ 276
$ 230
WPX 3rd Quarter Earnings Call | November 5, 2014
$
797
25
3rd Quarter Earnings Call Rick Muncrief, Chief Executive Officer
Disclaimer The information contained in this summary has been prepared to assist you in making your own evaluation of the Company and does not purport to contain all of the information you may consider important in deciding whether to invest in shares of the Company’s common stock. In all cases, it is your obligation to conduct your own due diligence. All information contained herein, including any estimates or projections, is based upon information provided by the Company. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation but should not be relied upon as an accurate representation of future results. No persons have been authorized to make any representations other than those contained in this summary, and if given or made, such representations should not be considered as authorized. Certain statements, estimates and financial information contained in this summary constitute forward-looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the results implied or expressed in such forward-looking statements or information. While presented with numerical specificity, certain forward-looking statements or information are based (1) upon assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, competitive uncertainties, contingencies and risks including, without limitation, the ability to obtain debt and equity financings, capital costs, construction costs, well production performance, operating costs, commodity pricing, differentials, royalty structures, field upgrading technology, and other known and unknown risks, all of which are difficult to predict and many of which are beyond the Company's control, and (2) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the results implied or expressed in such forward-looking statements or information or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the results implied or expressed in such forward-looking statements or information. Under no circumstances should the inclusion of the forward-looking statements or information be regarded as a representation, undertaking, warranty or prediction by the Company or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that the Company will achieve or is likely to achieve any particular results. The forward-looking statements or information are made as of the date hereof and the Company disclaims any intent or obligation to update publicly or to revise any of the forward-looking statements or information, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein.
WPX 3rd Quarter Earnings Call | November 5, 2014
2
Reserves Disclaimer The SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. We have elected to use in this presentation “probable” reserves and “possible” reserves, excluding their valuation. The SEC defines “probable” reserves as “those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered.” The SEC defines “possible” reserves as “those additional reserves that are less certain to be recovered than probable reserves.” The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC’s reserves reporting guidelines. Investors are urged to consider closely the disclosure regarding our business that may be accessed through the SEC’s website at www.sec.gov. The SEC’s rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors.
WPX 3rd Quarter Earnings Call | November 5, 2014
3
3rd Quarter Highlights Domestic oil production of 25.8 Mbbl/d, which grew 52% 3Q ’14 vs. 3Q ’13 Current domestic oil production rate of 29.0 Mbbl/d
Oil and liquids accounted for 56% total domestic production revenues ► YTD ’14 shows 40% increase in domestic oil revenues Cash flow from operations grew 50% through YTD 3Q ’14 vs. 3Q ’13 In fewer than 18 months after initial production, San Juan sold its one millionth net barrel of oil ► Averaging 1+ rigs High-grading our portfolio continues
WPX 3rd Quarter Earnings Call | November 5, 2014
4
Domestic Production – Normalized Growth 4Q ’14 Domestic Growth vs. 4Q ’13 ► ►
Equivalent production expected to be up by 9% Oil production expected to be up by +60%
Production Growth Excluding Legacy, Powder River and International 1200 1000 800 600 400 200 0 4Q ’13
1Q ’14
Oil
2Q ’14
NGLs/Natural Gas
3Q ’14
4Q ’14
Midpoint Guidance
WPX 3rd Quarter Earnings Call | November 5, 2014
5
Williston Efficiencies Driving Performance Continued strong production growth ►
Averaged 20.1 Mbbl/d in 3Q ’14
►
Oil production up 44% 3Q ’14 vs. 3Q ’13
Average Drilling Cost per Foot $350
Larger stimulations exceeding blended infill EUR type curve1
$300
Ruby 31-30HX exceeds type curve by 25 Mbo, or 53% in the first 86 days2
$250
Alfred Old Dog 30-31HD exceeds type curve by 13.8 Mbo, or 35% in the first 67 days2
$200
►
►
►
Morsette 35-26HD exceeds type curve by 21.7 Mbo, or 74% in the first 47 days2
Relentless focus on cost controls ►
Drilling and completion
►
Facilities design
►
Lease operating expense
$305
$236
$184 $150
$100
$50
$1 Blended
infill Middle Bakken and Three Forks type curve using 3MM-pound stimulations. 2 Days of production post clean out.
2012
2013
2014
WPX 3rd Quarter Earnings Call | November 5, 2014
6
Larger Completions Accelerating Production and Increasing Returns 80,000 70,000
Cumulative Barrels of Oil
60,000 50,000 40,000 30,000 20,000 10,000
0 0
30
60
90
Days After Clean Out RUBY 31-30HX (3F) RUBY 31-30HW (3F) MORSETTE 35-26HD (MB) MORSETTE 35-26HX (MB) 2015 BLENDED TYPE CURVE 3MM# Proppant
RUBY 31-30HA (MB) ALFRED OLD DOG 30-31HD(MB) MORSETTE 35-26HZ (3F) ALFRED OLD DOG 19-18HD (MB)
WPX 3rd Quarter Earnings Call | November 5, 2014
7
San Juan Gallup Accelerating Production Growth Rapidly growing oil production
12
26.9
10 5
16.2
0
►
►
Expected in-service date of 3Q ’15 Close proximity to premium West Coast markets and easy access to Gulf Coast Additional capacity available as basin production grows
6
4 2 0
7.0
6.0
6.0 5.0
MBOE per day
►
12.6
San Juan Gallup Production (MBOE per day)
Spud first WPX-operated 7,500′ lateral
Signed 5-year 10,000 bbl/d rail deal at a planned unit train facility
8
14.7
1Q-2013 2Q-2013 3Q-2013 4Q-2013 1Q-2014 2Q-2014 3Q-2014
Acquired two 7,500′ laterals drilled by 3rd party ►
16.3
Avg Rig Ct 2.3
15
16.6
Avg Rig Ct 2.0
20
10 Well Count
25
Avg Rig Ct 1.6
►
Increasing spuds from 40 to 48 in 2014 Record spud-to-rig release of 9.5 days with a TD of 10,390′
30
Avg Rig Ct 1.0
►
14
Spud to Release
Avg Rig Ct 1.0
Added 3rd rig in Gallup
35
16
38.9
Avg Rig Ct 1.0
►
40
Avg Rig Ct 1.0
►
Averaged 3.9 Mbbl/d in 3Q ’14 Oil production up 255% 3Q ’14 vs. 3Q ’13 Oil production up 30% 3Q ’14 vs. 2Q ’14 Days
►
Mancos Gallup Drilling Metrics by Quarter
3.8
4.0 3.0 2.0
1.7
2.2
1.0 0.0 4Q '13
1Q '14
2Q '14
3Q '14
WPX 3rd Quarter Earnings Call | November 5, 2014
8
Piceance: Ryan Gulch Efficiencies and Deep Resource Assessment 3rd quarter activity ► ►
Spud 70 wells in 3Q Spud 209 wells 3Q YTD
3rd quarter net production 640 MMcfe/d ► ► ►
Natural gas 542 MMcf/d NGL 14.5 Mbbl/d Oil 1.7 Mbbl/d
► ►
Drilled 1st Ryan Gulch vertical deep well test Record well drilled 8.1 days ►
►
31% improvement from 2013 average of 11.8 days
(2,500 ft)
Iles (650 ft)
Sego (600 ft)
Loyd (625 ft)
Castlegate (650 ft)
Mancos B
Niobrara update ►
Parachute horizontal test drilled and completed ►
►
Peak rate of 14 MMcfe/d @ 7,200 psi
Testing additional intervals in the Mancos Group
Deep resource assessment – Niobrara/Mancos ► ►
(1,100 ft)
Niobrara
(5,000 ft)
Water disposal costs decreased from $2.55/bbl to $0.64/bbl in 2014
Mancos/Niobrara Group
Highlights from Ryan Gulch
Lower Williams Fork
(1,430 ft)
Stacked-pay potential Testing new fields – Ryan Gulch
WPX 3rd Quarter Earnings Call | November 5, 2014
9
Financial Results Kevin Vann, Chief Financial Officer
3rd Quarter Results 3Q
YTD Avg
2014
2013
2014
2013
Gas (MMcf/d)
766
839
797
835
Oil (Mbbl/d)
32.3
22.3
28.6
21.0
NGLs (Mbbl/d)
17.5
20.1
18.0
21.0
Equivalent (MMcfe/d)
1,065
1,094
1,076
1,087
Adjusted EBITDAX
230
174
797
564
Adjusted Net Income (Loss) from Continuing Operations
(4)
(80)
30
(173)
Capital Expenditures
597
295
1,325
843
Dollars in millions, except production numbers
Daily Production
Note: Adjusted EBITDAX and adjusted net income are non-GAAP measures. A reconciliation to relevant measures included in GAAP is provided in this presentation.
WPX 3rd Quarter Earnings Call | November 5, 2014
11
2014 Full-Year Domestic Guidance – Excludes Powder River and International Production Natural Gas MMcf/d Oil Mbbl/d NGL Mbbl/d Total MMcfe/d
Cap Ex ($ in Millions)
% of Net Realized Price3
Previous
Current
755 - 775 24.2 - 25.8 17.0 - 18.07 1,002 - 1,038
Natural Gas - NYMEX Oil - WTI NGL - OPIS/Mt Belvieu
80% - 86% 81% - 87% 76% - 80%
80% - 86% 83% - 89% 76% - 80%
Current
Expenses
Previous
Current
$0.73 - $0.75 1.95 - 2.00 0.92 - 0.97 0.63 - 0.67 0.42 - 0.46
$0.67 - $0.70 2.15 - 2.20 0.89 - 0.94 0.71 - 0.75 0.38 - 0.42
($25) - ($35) 85 - 95 125 - 130 (20) - (25)
($25) - ($35) 120 - 130 125 - 130 –
Previous
Disc. Ops
Current
920 - 950 30.2 - 32.0 18.0 - 19.0 1,209 - 1,256
(170) (6.1) (0.4) (209)
Previous
Growth Basins Piceance Williston San Juan Gallup Other Appalachia Other1 Land Exploration Total Domestic International2 Total Capital6
$475 - $495 640 - 650 210 - 220
$475 - $495 630 - 660 280 - 290
20 - 30 10 - 15 75 - 85 40 - 45 $1,470 - $1,540 90 - 100 $1,560- $1,640
20 - 30 10 - 15 75 - 85 40 - 45 $1,530 - $1,620 – $1,530 - $1,620
Number of Rigs
Previous
Current
6 2 1 9 5 2 16
6 2 1 9 5 3 17
Piceance Valley Piceance Highlands Piceance Niobrara Total Piceance Williston San Juan Gallup Total Rigs
$ per Mcfe LOE DD&A GP&T SG&A Production Tax $ in Millions Gas Management (Inc)/Exp4 Exploration Interest Expense Equity (Earnings) Loss
Tax Rate
Previous
Current
Tax Provision5
33% - 37%
33% - 37%
1 Other
includes expenditures for Powder River and other basins. is a self-funded entity and does not receive any cash from WPX Energy. 3 Percentage of realized price ranges for NYMEX, WTI and OPIS excludes hedges, but includes basis differential and revenue adjustments. 4 Gas Management impact is net of revenues and expenses, and includes unutilized transport capacity. Includes impact of realized hedges on non-equity production. 5 Excludes impact of $9MM tax expense accrual for new legislation in 1Q ’14. 6 Excludes acquisition capital. 7 Current guidance assumes lower ethane recovery levels than the previous guidance. 2 International
WPX 3rd Quarter Earnings Call | November 5, 2014
12
WPX Executing on 20/20 Vision High-grading our portfolio continues
Cash flow from operations grew 50% through YTD 3Q ’14 vs. 3Q ’13 Rockies Express transportation deal rolling off mid-November ►
More than $100MM in EBITDAX improvement
Strong balance sheet ►
► ►
Enables flexibility in lower commodity price environment Provides ability to be opportunistic New $1.5B credit facility through 2019
2015 guidance released by early December
WPX 3rd Quarter Earnings Call | November 5, 2014
13
Appendix
2013-14 Daily Production 1Q
2Q
2013 3Q
4Q
Avg Total
1Q
2Q
2014 3Q
Avg Total
Gas (MMcf/d)
822
811
821
790
811
795
791
746
777
Oil (Mbbl/d)
13.8
15.1
17.1
18.9
16.2
19.3
23.7
25.8
23.0
NGLs (Mbbl/d)
21.2
20.8
19.7
19.7
20.3
17.6
17.9
17.1
17.5
MMcfe/d
1,032
1,026
1,041
1,021
1,030
1,016
1,040
1,003
1,020
Gas (MMcf/d)
17
18
19
19
18
19
20
21
20
Oil (Mbbl/d)
5.6
6.1
5.3
5.3
5.6
5.2
5.2
6.5
5.6
NGLs (Mbbl/d)
0.5
0.5
0.5
0.4
0.5
0.5
0.4
0.4
0.4
MMcfe/d
53
57
53
53
54
53
54
62
56
Gas (MMcf/d)
839
829
839
809
829
814
811
766
797
Oil (Mbbl/d)
19.4
21.2
22.3
24.2
21.8
24.5
28.9
32.3
28.6
NGLs (Mbbl/d)
21.6
21.3
20.1
20.1
20.8
18.1
18.3
17.5
18.0
MMcfe/d
1,085
1,083
1,094
1,074
1,084
1,069
1,095
1,065
1,076
Domestic Production
International Production
Total Production
Note: Excludes discontinued operations (Powder River production)
WPX 3rd Quarter Earnings Call | November 5, 2014
15
Hedging Overview
As of 10/28/2014
Balance of 20141 Volume/Day Average Price
2015 Volume/Day
Average Price
Natural Gas (MMBtu) Fixed Price Swaps2
315,000
$4.19
272,055
$4.31
Costless Collars
190,000
$4.04 - $4.66
50,000
$4.00 - $4.50
Dominion Basis Swaps
38,750
($0.73)
MidCon Basis Swaps
30,000
($0.19)
12,500
($0.16)
Rockies Basis Swaps
142,500
($0.15)
150,000
($0.11)
San Juan Basis Swaps
255,000
($0.15)
85,000
($0.10)
SoCal Basis Swaps
72,500
$0.13
20,000
$0.18
14,975
$96.01
20,236
$94.88
Ethane Swaps
3,261
$0.29
Propane Swaps
489
$1.17
Isobutane Swaps
652
$1.37
Normal Butane Swaps
652
$1.34
1,630
$2.06
Natural Gas Basis (MMBtu)
Crude Oil (bbl) Fixed Price Swaps2 Natural Gas Liquids (bbl)3
Natural Gasoline Swaps 1
Balance of 2014 is October - December. connection with several natural gas and crude oil swaps, we entered into swaptions with the swap counterparties granting the counterparty the right, but not the obligation, to enter into an underlying swap with us in the future. 3 All Natural Gas Liquids swaps are priced at Mont Belvieu. 2 In
WPX 3rd Quarter Earnings Call | November 5, 2014
16
Domestic Price Realization for 2014 Gas ($/Mcf) 1Q ’14
2Q ’14
3Q ’14
Weighted-Average Sales Price
$4.84
$4.00
Revenue Adjustments1
(0.42)
NGL ($/bbl) 1Q ’14
2Q ’14
3Q ’14
1Q ’14
2Q ’14
3Q ’14
$3.30
$49.14
$44.18
$43.42
$88.40
$88.94
$84.76
(.34)
(.38)
(10.87)
(10.60)
(9.78)
(2.16)
.30
(.65)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$4.42
$3.66
$2.92
$38.27
$33.58
$33.64
$86.24
$89.24
$84.11
Realized Portion of Derivatives Not Designated as Hedges(3)
(0.63)
(.13)
.15
(0.48)
(.30)
.66
(2.30)
(3.40)
(.70)
Net Price Including All Derivatives
$3.79
$3.53
$3.07
$37.79
$33.28
$34.30
$83.94
$85.84
$83.41
1Q ’14
2Q ’14
3Q ’14
Impact of Rockies Sale-for-Resale Contract Expires in Nov. ’14
$(0.38)
$(0.40)
$(0.61)
Weighted-Average Sales Price Excluding Rex
$4.17
$3.93
$3.68
Hedge Impact
Net Price
(2)
4Q ’14
Oil ($/bbl) 4Q ’14
4Q ’14
4Q ’14
3Q: Rockies sale-for-resale agreement impacted net realized gas price ($0.61). Contract expires in November 2014.
1 Natural
gas revenue adjustments are primarily related to field compression fuel. NGL revenue adjustments include T&F and revenue sharing. Of the oil revenue adjustments, gathering deductions represent $(1.25).
2 “Net
Price” equals income statement product revenues by commodity, divided by volume.
3 Represents
the realized cash flows that occurred during each quarter, which are attributable to derivatives that were not designated as hedges for accounting purposes.
WPX 3rd Quarter Earnings Call | November 5, 2014
17
Piceance Basin
Mesaverde Rigs
Niobrara Dedicated Rig
WPX 3rd Quarter Earnings Call | November 5, 2014
18
Williston Basin
WPX-operated rig
WPX 3rd Quarter Earnings Call | November 5, 2014
19
Williston Netback Price Analysis Sales Outlets
Estimated Volume % (Oct - Dec 2014)
Basin-Priced Sales
58%
Rail Deals
30%
Enbridge Capacity
12%
Total Sales Outlets
100%
Assumed 4Q 2014 total netback of WTI less $12 - $13 per barrel Our current sales agreements consist of the following: ► ► ►
Basin sales: Arrow CDP WASP and lease sales Rail: Receive Gulf, West and East Coast pricing Enbridge: Receive Clearbrook, Minn., price
Our sales agreements in 2014-16 are expected to consist of the following: ► ► ► ►
Basin sales: Receive a basket price from sales to third-party marketers Rail: Receive Gulf, West and East Coast pricing less associated fees Enbridge: Receive Clearbrook, Minn., price less associated transportation fees Unit train rail options: WPX has up to 9,250 bbl/d of committed rail capacity until mid-2016, receiving West, East or Gulf Coast pricing less associated transportation fees
WPX 3rd Quarter Earnings Call | November 5, 2014
20
San Juan Basin
WPX 3rd Quarter Earnings Call | November 5, 2014
21
Non-GAAP
WPX Non-GAAP Disclaimer This presentation may include certain financial measures, including adjusted EBITDAX (earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses), that are non-GAAP financial measures as defined under the rules of the Securities and Exchange Commission. This presentation is accompanied by a reconciliation of these non-GAAP financial measures to their nearest GAAP financial measures. Management uses these financial measures because they are widely accepted financial indicators used by investors to compare a company’s performance. Management believes that these measures provide investors an enhanced perspective of the operating performance of the company and aid investor understanding. Management also believes that these non-GAAP measures provide useful information regarding our ability to meet future debt service, capital expenditures and working capital requirements. These non-GAAP financial measures should not be considered in isolation or as substitutes for a measure of performance prepared in accordance with United States generally accepted accounting principles.
WPX 3rd Quarter Earnings Call | November 5, 2014
23
Reconciliation-Adjusted Income (Loss) from Continuing Operations (Unaudited) 2013 (Dollars in millions, except per share amounts)
1Q
2Q
Income (loss) from continuing operations attributable to WPX Energy, Inc. available to common stockholders
$ (110)
$
Income (loss) from continuing operations – diluted earnings per share
$(0.55)
2014
3Q
4Q
Year
1Q
2Q
3Q
14
$ (106)
$ (876) $ (1,078)
$
$ 0.07
$(0.53)
$(4.36)
$(5.38)
$
$1,169
$1,188
4Q
YTD
1
$ (143)
$
57
$ (85)
$ 0.01
$ (0.71)
$ 0.28
$ (0.42)
Pre-tax adjustments: Impairment of producing properties, costs of acquired unproved reserves, leasehold and equity method investment (1) Impairments – exploratory related Loss on sale of working interests in the Piceance Basin Expense related to Early Exit Program Early rig-release expenses Costs related to chief executive officer separation Buyout of transportation agreement Unrealized MTM (gain) loss
$
-
$
-
19
$
-
$
-
$
-
$
-
$
-
$
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
$
-
$
-
$
-
$
$
-
$
-
$
-
$
4
$
-
$
-
$
-
$
9
$
-
$
-
$
-
$
-
$
40
$
22
$
-
$
-
$ 195
$
1
$ 196
-
$
-
$
-
$
2
$
8
$
10
-
$
-
$
-
$
-
$
6
$
6
$
4
$
-
$
-
$
-
$
-
$
9
$
-
$
-
$
-
$
-
$
-
$ (133)
$ (106)
$
62
$ 103
$ (98)
$
13
$
89
$ 107
$
27
Total pre-tax adjustments
$ 103
$ (98)
$
32
$1,271
$1,308
$
27
$ 237
$ (96)
$ 168
Less tax effect for above items
$ (38)
$
$ (12)
$ (463)
$ (477)
$
(10)
$ (87)
$
$ (62)
36
Impact of new Argentine capital tax law (1)
$
-
$
-
Impact of new state tax law in New York (net of federal benefit)
$
-
$
-
$ $
6
$
-
-
$
-
$ $
6
$
35
-
$
-
$
-
$
-
$
-
-
$
9
$ $
9
Total adjustments, after-tax
$
65
$ (62)
$
26
$ 808
$ 837
$
26
$ 150
$ (61)
$ 115
Adjusted income (loss) from continuing operations available to common stockholders
$ (45)
$ (48)
$ (80)
$ (68)
$ (241)
$
27
$
$
$
Adjusted diluted earnings (loss) per common share
$(0.22)
$(0.24)
$(0.39)
$(0.35)
$(1.20)
$ 0.13
$ 0.03
$(0.02)
$ 0.14
199.9
203.8
200.7
200.9
200.4
205.2
202.7
207.5
202.5
Diluted weighted-average shares (millions)
7
(4)
30
(1) These items are presented net of amounts attributable to noncontrolling interests. WPX 3rd Quarter Earnings Call | November 5, 2014
24
Reconciliation – EBITDAX (Unaudited) 2013 (Dollars in millions)
1Q
2Q
3Q
2014 4Q
YTD
1Q
2Q
3Q
4Q
YTD
Adjusted EBITDAX Reconciliation to net income (loss): Net income (loss)
Interest expense Provision (benefit) for income taxes Depreciation, depletion and amortization Exploration expenses EBITDAX Impairment of producing properties, costs of acquired unproved reserves and equity investments Loss on sale of working interests in the Piceance Basin Net (gain) loss on derivatives not designated as hedges Net cash received (paid) related to settlement of derivatives not designated as hedges (Income) loss from discontinued operations Adjusted EBITDAX
$ (113)
$
22 $ (116) $ (984) $ (1,191)
$ 19 $ (133)
$
66
$
(48)
26
28
28
26
108
29
28
31
88
(59)
9
(29)
(514)
(593)
15
(74)
28
(31)
217
215
230
230
892
203
211
213
627
18
20
21
371
430
15
57
29
101
89
294
134
(871)
(354)
281
89
367
737
–
–
19
864
883
–
–
–
–
–
–
–
–
–
–
195
1
196
94
(78)
15
93
124
195
17
(148)
64
9
(20)
(2)
(4)
(17)
(168)
(17)
15
(170)
6
(4)
8
97
107
(17)
(8)
(5)
(30)
$ 198
$ 192
$ 174
$ 179
$ 743
$ 291
$ 276
$ 230
WPX 3rd Quarter Earnings Call | November 5, 2014
$
797
25
