UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
Date of report (Date of earliest event reported):  October 30, 2019
 
WPX Energy, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware	 	1-35322	 	45-1836028	
(State or Other Jurisdiction of	 	(Commission File Number)	 	(I.R.S. Employer	
Incorporation)	 	 	 	Identification No.)	
 
3500 One Williams Center, Tulsa, Oklahoma	 	74172-0172	
(Address of Principal Executive Offices)	 	(Zip Code)	
 
Registrant’s Telephone Number, Including Area Code:  855-979-2012
 
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Title of each class	 	Trading Symbol(s)	 	Name of each exchange on which
registered	
Common stock, $0.01 par value	 	WPX	 	New York Stock Exchange	
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

Item 2.02	Results of Operations and Financial Condition	
 
On October 30, 2019, WPX Energy, Inc. announced its financial results and operating highlights for the third quarter of 2019. A copy of the press release is furnished as Exhibit 99.1 to this report.
 
The information furnished under this Item 2.02, including Exhibit 99.1, will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and will not be incorporated by reference into any filing under the Securities Act of 1933, except as may be set forth by specific reference in that filing.
 
Item 9.01(d)	Financial Statements and Exhibits	
 
Exhibit No.	 	Description	
99.1	 	Press release dated October 30, 2019	
 	 	 	
104	 	Cover Page Interactive Data File. The cover page XBRL tags are embedded within the inline XBRL document (contained in Exhibit 101).	

 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 	WPX ENERGY, INC.	

 	By:  	/s/ Stephen E. Brilz	
 	 	Stephen E. Brilz	
 	 	Vice President and Secretary	
DATED: October 30, 2019	 	 	

 
 
EXHIBIT INDEX
 
Exhibit No.	 	Description	
99.1	 	Press release dated October 30, 2019	

 

 
Exhibit 99.1
 
  	WPX Energy, Inc.
(NYSE:WPX)
www.wpxenergy.com	 		

DATE: Oct. 30, 2019
 
MEDIA CONTACT:
Kelly Swan
(539) 573-4944	INVESTOR CONTACT:
David Sullivan
(539) 573-9360	
 
WPX Energy Reports 3Q 2019 Results
 
Delivers free cash flow, capital discipline and share repurchase progress

	·	3Q oil volumes were 108.6 Mbbl/d; up 11% vs. 2Q	
 
	·	Projecting 109-111 Mbbl/d in 4Q oil volumes: up 4% vs. prior outlook	
 
	·	3Q CAPEX was $264 million	
 
	·	Repurchased $58 million in shares to date at an avg. of $10.16 per share	
 
	·	CFFO up 39% in first three quarters of 2019 vs. year ago	
 
	·	Swapped 6.00% and 8.25% notes for 5.25% notes	
 
TULSA, Okla. – WPX Energy (NYSE:WPX) reported third-quarter oil volumes of 108,600 barrels per day, which was 30 percent higher vs. a year ago and 11 percent higher than second-quarter 2019.
 
WPX reported unaudited third-quarter income available to common stockholders of $121 million, or income of $0.29 per share on a diluted basis. A year ago, WPX reported a loss of $0.01 per share.
 
Excluding derivatives and other items, WPX posted adjusted net income from continuing operations in third-quarter 2019 of $38 million, or income of $0.09 per share. A reconciliation accompanies this press release.
 
Adjusted EBITDAX (a non-GAAP financial measure) for third-quarter 2019 was $352 million, up 22 percent vs. $288 million in the same period a year ago. A reconciliation accompanies this release.
 
Cash flow from operations, inclusive of hedge impact, was $272 million in third-quarter 2019, which was 21 percent higher than $224 million in the same period a year ago.
 
Free cash flow for the third quarter was $42 million. Free cash flow for the quarter represents cash flow from operations ($272 million) adjusted for the impact of net changes in assets and liabilities ($34 million) less incurred capital expenditures ($264 million).
 
CEO PERSPECTIVE
 
“Our value proposition at WPX, both financially and strategically, is stronger than ever because of our consistent execution,” said Rick Muncrief, chairman and chief executive officer.

 

“We generated free cash flow in the quarter, are returning capital to shareholders ahead of schedule and are applying our technical expertise to lower costs and raise margins on barrels produced.
 
“All of this contributes to an exceptional outlook for the fourth quarter, 2020 and beyond, especially with improved capital efficiency, greater gas capture, lower interest expense and how we’re working to drive our leverage even lower,” Muncrief added.
 
RECENT EVENTS
 
In August, WPX announced a plan to opportunistically repurchase up to $400 million of its shares over the next 24 months. To date, the company has since repurchased $58 million of its common stock at an average price of $10.16 per share, retiring 5.7 million shares.
 
During the third quarter, WPX completed tender offers repurchasing $456 million of its outstanding 6.00 percent notes due in 2022 and $94 million of its 8.25 percent notes due in 2023 through a public offering for 5.25 percent notes due in 2027.
 
These actions reduced WPX’s weighted average interest rate for long-term debt from 6.24 percent to 5.93 percent, effectively lowering its annual interest expense by approximately $4 million going forward. WPX’s next significant maturity does not occur until 2023, which is $406 million.
 
RAISING 4Q AND FULL-YEAR OUTLOOK
 
WPX is forecasting stronger fourth quarter oil volumes than originally detailed in its quarter-to-quarter guide for 2019.
 
This momentum also is driving the anticipated 2019 exit rate higher with no additional capital allocation. WPX originally forecast 5-10 percent growth vs. the 2018 exit rate. WPX now expects this year’s exit rate to grow 15 percent vs. a year ago.
 
WPX expects fourth-quarter oil volumes of 109-111 Mbbl/d. This also raises WPX’s outlook for full-year 2019 oil volumes to 102-104 Mbbl/d, up from its most recent estimate of 101-103 Mbbl/d.
 
WPX now expects full-year total production of 162-167 Mboe/d in 2019, up from its most recent estimate of 160-165 Mboe/d.
 
With one quarter remaining in the year, WPX’s tightened the range for its 2019 total capital development plan to $1,125-$1,250 million. The midpoint remains unchanged from the previous estimate of $1,100-$1,275 million.
 
Total capital spending in the third quarter was $264 million, predominantly from $233 million in D&C activity for operated wells and $22 million for midstream infrastructure.

 

Details related to anticipated full-year production, capital, realized pricing and expenses are available in WPX’s third-quarter investor presentation available online at www.wpxenergy.com.
 
DELAWARE BASIN: VOLUMES UP 28%
 
WPX’s Delaware production averaged 96.7 Mboe/d in third-quarter 2019, which was 28 percent higher than 75.4 Mboe/d in the same period a year ago.
 
Oil production of 47.2 Mbbl/d comprised 49 percent of third-quarter total Delaware production. Oil volumes were up 10 percent vs. 42.8 Mbbl/d in the third quarter a year ago.
 
Third-quarter Delaware NGL production was up 93 percent vs. a year ago. NGL volumes are up significantly in 2019 reflecting the benefit of processing capacity at WPX’s joint venture gas plant in Reeves County, which did not startup until the end of the third quarter last year. Physical natural gas volumes also are up due to increased gas capture and reduced flaring.
 
WPX’s average realized oil price in the Delaware was WTI minus $0.50 for the quarter, including Midland basis swaps.
 
WPX’s average realized natural gas price in the Delaware was NYMEX less $0.40 for the quarter, including basis swaps which increased the average realized price by $0.51 per Mcf. WPX also realized $3 million in net commodity management margins, or $0.20 per Mcf, related to further risk management activities around Delaware natural gas pricing exposure.
 
WPX completed 18 Delaware wells during the third quarter, including nine in the Wolfcamp A interval, five wells in the Third Bone Spring formation and four in the Wolfcamp XY interval.
 
Two of the third-quarter Third Bone Spring wells were on the CBR 6-7 pad. Both wells had a 24-hour peak rate exceeding 4,300 Boe/d (59% oil), with combined 60-day cumulative production in excess of 214,000 barrels of oil. Sixty-day cumulative Boe for the two wells was nearly 365,000.
 
Two Wolfcamp A wells on the Pecos State 39-46 pad had 24-hour peak rates of 3,939 Boe/d (54% oil) and 3,819 Boe/d (53% oil).
 
On the Lindsay 10-15 pad, a Wolfcamp A well hit a 24-hour high of 4,150 Boe/d (54% oil) during initial production, and a Wolfcamp XY well hit 3,528 Boe/d (53% oil).
 
Following the completion of the second 200 MMcf/d cryogenic processing train at WPX’s 50/50 joint venture gas plant in Reeves County earlier this year, the plant is processing approximately 100 MMcf/d of third-party volumes in addition to WPX volumes.

 

The joint venture also completed a 16-inch-diamater trunk line that will begin transporting an estimated 40-50 MMcf/d of natural gas from WPX’s Sand Lake acreage position in the Delaware Basin to the Reeves County plant in early 2020.
 
WILLISTON BASIN: VOLUMES UP 58%
 
Williston Basin production averaged 76.8 Mboe/d in third-quarter 2019, which was 58 percent higher than 48.5 Mboe/d in the same period a year ago.
 
WPX completed 26 Williston wells during the third quarter, including 14 wells in the Bakken formation and 12 wells in the Three Forks formation.
 
The highest 24-hour rate for the third-quarter Williston completions was 5,664 Boe/d (81% oil) on the Bird Bear 35-26HB well. The six-well pad averaged nearly 4,600 Boe/d (81% oil) per well during 24-hour initial highs. Thirty-day production averaged 2,851 Boe/d per well.
 
Initial peak rates on the seven-well Lion pad averaged more than 3,800 Boe/d (81% oil) per well. Two of the wells on the pad hit 24-hour peak rates of 4,237 Boe/d.
 
The four-well Sweet Grass Woman pad also averaged nearly 3,800 Boe/d (81% oil) per well, led by the 22-15HD well that hit a 24-hour peak rate of 4,381 Boe/d.
 
WPX also drilled a Williston well in less than nine days during the quarter. The company drilled the St. Anthony 9-16-HY well in 8.63 days from spud to rig release with a lateral length of 9,886 feet.
 
3Q FINANCIAL RESULTS
 
Total product revenues of $581 million in third-quarter 2019 were five percent higher than the same period a year ago. Quarterly oil sales grew seven percent.
 
Total product revenues of $1,646 million during the first three quarters of 2019 were 11 percent higher than $1,481 million during the same period in 2018.
 
For the first three quarters of the year, WPX posted net income from continuing operations attributable to common shareholders of $378 million, or income of $0.89 per share on a diluted basis.
 
Adjusted net income from continuing operations for the first three quarters of 2019 was $97 million, or income of $0.23 per share. A reconciliation accompanies this press release.
 
During the third quarter, DD&A, lease operating expenses, taxes and G&A expense all declined on a per-Boe basis vs. the most recent quarter.

 

For the first three quarters of 2019, adjusted EBITDAX (a non-GAAP financial measure) was $1,003 million, or 29 percent higher than $775 million for the same period in 2018. Adjusted EBITDAX has now climbed for six consecutive quarters. Reconciliations for non-GAAP financial measures are available in the tables that accompany this press release.
 
The weighted average gross sales price – prior to revenue deductions and derivatives – was $54.25 per barrel for oil, $1.80 for natural gas and $11.92 per barrel for NGL during third-quarter 2019.
 
WPX’s total liquidity at the close of business on Sept. 30, 2019, was approximately $1.5 billion, including cash, cash equivalents and nearly all of its $1.5 billion available revolver capacity. WPX had no outstanding revolver borrowings at the end of the quarter, with the exception of outstanding letters of credit.
 
3Q PRODUCTION
 
Total production volumes of 173.4 Mboe/d in third-quarter 2019 increased 9 percent vs. second-quarter 2019 and were 40 percent higher than the same period a year ago. Liquids volumes accounted for 78 percent of third-quarter 2019 production.
 
 	 	Q3	 	 	2Q Sequential	 	
Average Daily Production	 	2019	 	 	2018	 	 	Change	 	 	2019	 	 	Change	 	
Oil (Mbbl/d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delaware Basin	 	 	47.2	 	 	 	42.8	 	 	 	10	%	 	 	46.4	 	 	 	2	%	
Williston Basin	 	 	61.4	 	 	 	40.6	 	 	 	51	%	 	 	51.5	 	 	 	19	%	
Subtotal (Mbbl/d)	 	 	108.6	 	 	 	83.4	 	 	 	30	%	 	 	97.9	 	 	 	11	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NGLs (Mbbl/d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delaware Basin	 	 	19.3	 	 	 	10.0	 	 	 	93	%	 	 	21.7	 	 	 	-11	%	
Williston Basin	 	 	7.7	 	 	 	3.7	 	 	 	108	%	 	 	5.7	 	 	 	35	%	
Subtotal (Mbbl/d)	 	 	27.0	 	 	 	13.7	 	 	 	97	%	 	 	27.4	 	 	 	-1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Natural gas (MMcf/d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Delaware Basin	 	 	180.9	 	 	 	135.4	 	 	 	34	%	 	 	170.9	 	 	 	6	%	
Williston Basin	 	 	46.0	 	 	 	25.0	 	 	 	84	%	 	 	35.0	 	 	 	31	%	
Subtotal (MMcf/d)	 	 	226.9	 	 	 	160.4	 	 	 	41	%	 	 	205.9	 	 	 	10	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Production (Mboe/d)	 	 	173.4	 	 	 	123.8	 	 	 	40	%	 	 	159.6	 	 	 	9	%	
 
WPX completed 44 gross operated wells (41 net) in its two core basins during third-quarter 2019 and participated in one gross (0 net) non-operated well in the Williston Basin.

 

For the balance of 2019, WPX has 83,000 bbl/d of oil hedged with fixed price swaps at a weighted average price of $56.72 per barrel, 5,000 bbl/d with fixed price calls at a weighted average price of $54.08 per barrel, and 8,000 bbl/d with collars at a weighted average price of $50 for the floor and $60.19 for the ceiling.
 
WPX also has 110,000 MMBtu/d of natural gas hedged with fixed price swaps at a weighted average price of $3.07 per MMBtu for the balance of 2019.
 
For 2020, WPX has 55,000 bbl/d of oil hedged with fixed price swaps at a weighted average price of $57.03 per barrel and 20,000 bbl/d with collars at a weighted average price of $53.33 for the floor and $63.48 for the ceiling.
 
THURSDAY WEBCAST
 
The company’s next webcast takes place on Oct. 31 beginning at 10 a.m. Eastern. Investors are encouraged to access the event and the corresponding slides at www.wpxenergy.com.
 
A limited number of phone lines also will be available at (833) 832-5123. International callers should dial (469) 565-9820. The conference identification code is 5288286.
 
FORM 10-Q
 
WPX plans to file its third-quarter 2019 Form 10-Q with the Securities and Exchange Commission this week. Once filed, the document will be available on the SEC and WPX websites.
 
About WPX Energy, Inc.
 
WPX is an independent energy producer with core positions in the Permian and Williston basins. WPX’s production is approximately 80 percent oil/liquids and 20 percent natural gas. The company also has an infrastructure portfolio in the Permian Basin. Visit www.wpxenergy.com for more information.
 
# # #
 
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the date of this press release, even if subsequently made available by WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s website at www.sec.gov.

 

Additionally, 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. From time to time, we elect to use “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 in our SEC filings 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 Energy, Inc.
Consolidated (GAAP)
(UNAUDITED)
 
 	 	2018	 	 	2019	 	
(Dollars in millions)	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	Year	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Product revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil sales	 	$	360	 	 	$	468	 	 	$	503	 	 	$	459	 	 	$	1,790	 	 	$	449	 	 	$	511	 	 	$	539	 	 	$	1,499	 	
Natural gas sales	 	 	17	 	 	 	16	 	 	 	18	 	 	 	36	 	 	 	87	 	 	 	25	 	 	 	16	 	 	 	16	 	 	 	57	 	
Natural gas liquid sales	 	 	30	 	 	 	36	 	 	 	33	 	 	 	49	 	 	 	148	 	 	 	33	 	 	 	31	 	 	 	26	 	 	 	90	 	
Total product revenues	 	 	407	 	 	 	520	 	 	 	554	 	 	 	544	 	 	 	2,025	 	 	 	507	 	 	 	558	 	 	 	581	 	 	 	1,646	 	
Net gain (loss) on derivatives	 	 	(69	)	 	 	(154	)	 	 	(139	)	 	 	443	 	 	 	81	 	 	 	(207	)	 	 	78	 	 	 	175	 	 	 	46	 	
Commodity management	 	 	36	 	 	 	64	 	 	 	68	 	 	 	36	 	 	 	204	 	 	 	59	 	 	 	58	 	 	 	38	 	 	 	155	 	
Other	 	 	-	 	 	 	-	 	 	 	1	 	 	 	(1	)	 	 	-	 	 	 	-	 	 	 	1	 	 	 	1	 	 	 	2	 	
Total revenues	 	 	374	 	 	 	430	 	 	 	484	 	 	 	1,022	 	 	 	2,310	 	 	 	359	 	 	 	695	 	 	 	795	 	 	 	1,849	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	 	161	 	 	 	197	 	 	 	193	 	 	 	226	 	 	 	777	 	 	 	219	 	 	 	221	 	 	 	241	 	 	 	681	 	
Lease and facility operating	 	 	55	 	 	 	59	 	 	 	68	 	 	 	90	 	 	 	272	 	 	 	86	 	 	 	94	 	 	 	96	 	 	 	276	 	
Gathering, processing and transportation	 	 	18	 	 	 	20	 	 	 	26	 	 	 	43	 	 	 	107	 	 	 	42	 	 	 	40	 	 	 	49	 	 	 	131	 	
Taxes other than income	 	 	30	 	 	 	41	 	 	 	45	 	 	 	41	 	 	 	157	 	 	 	39	 	 	 	43	 	 	 	46	 	 	 	128	 	
Exploration	 	 	19	 	 	 	17	 	 	 	18	 	 	 	21	 	 	 	75	 	 	 	24	 	 	 	24	 	 	 	22	 	 	 	70	 	
General and administrative:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General and administrative expenses	 	 	36	 	 	 	34	 	 	 	36	 	 	 	44	 	 	 	150	 	 	 	39	 	 	 	40	 	 	 	42	 	 	 	121	 	
Equity-based compensation	 	 	7	 	 	 	10	 	 	 	8	 	 	 	7	 	 	 	32	 	 	 	8	 	 	 	8	 	 	 	9	 	 	 	25	 	
Total general and administrative	 	 	43	 	 	 	44	 	 	 	44	 	 	 	51	 	 	 	182	 	 	 	47	 	 	 	48	 	 	 	51	 	 	 	146	 	
Commodity management	 	 	39	 	 	 	54	 	 	 	63	 	 	 	26	 	 	 	182	 	 	 	49	 	 	 	41	 	 	 	36	 	 	 	126	 	
Net (gain) loss on sales of assets	 	 	1	 	 	 	(1	)	 	 	(1	)	 	 	(2	)	 	 	(3	)	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Other-net	 	 	2	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	7	 	 	 	2	 	 	 	3	 	 	 	12	 	 	 	17	 	
Total costs and expenses	 	 	368	 	 	 	433	 	 	 	458	 	 	 	497	 	 	 	1,756	 	 	 	508	 	 	 	514	 	 	 	553	 	 	 	1,575	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	 	 	6	 	 	 	(3	)	 	 	26	 	 	 	525	 	 	 	554	 	 	 	(149	)	 	 	181	 	 	 	242	 	 	 	274	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(46	)	 	 	(39	)	 	 	(38	)	 	 	(40	)	 	 	(163	)	 	 	(41	)	 	 	(40	)	 	 	(38	)	 	 	(119	)	
Loss on extinguishment of debt	 	 	-	 	 	 	(71	)	 	 	-	 	 	 	-	 	 	 	(71	)	 	 	-	 	 	 	-	 	 	 	(47	)	 	 	(47	)	
Gains on equity method investment transactions	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	126	 	 	 	247	 	 	 	-	 	 	 	373	 	
Investment income (loss) and other	 	 	(1	)	 	 	1	 	 	 	(2	)	 	 	(2	)	 	 	(4	)	 	 	2	 	 	 	1	 	 	 	4	 	 	 	7	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	 	$	(41	)	 	$	(112	)	 	$	(14	)	 	$	483	 	 	$	316	 	 	$	(62	)	 	$	389	 	 	$	161	 	 	$	488	 	
Provision (benefit) for income taxes	 	 	(15	)	 	 	(33	)	 	 	(8	)	 	 	130	 	 	 	74	 	 	 	(14	)	 	 	84	 	 	 	39	 	 	 	109	 	
Income (loss) from continuing operations	 	$	(26	)	 	$	(79	)	 	$	(6	)	 	$	353	 	 	$	242	 	 	$	(48	)	 	$	305	 	 	$	122	 	 	$	379	 	
Income (loss) from discontinued operations	 	 	(89	)	 	 	(2	)	 	 	(1	)	 	 	1	 	 	 	(91	)	 	 	-	 	 	 	-	 	 	 	(1	)	 	 	(1	)	
Net income (loss)	 	$	(115	)	 	$	(81	)	 	$	(7	)	 	$	354	 	 	$	151	 	 	$	(48	)	 	$	305	 	 	$	121	 	 	$	378	 	
Less: Dividends on preferred stock	 	 	4	 	 	 	4	 	 	 	-	 	 	 	-	 	 	 	8	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
Net income (loss) available to WPX Energy, Inc. common stockholders	 	$	(119	)	 	$	(85	)	 	$	(7	)	 	$	354	 	 	$	143	 	 	$	(48	)	 	$	305	 	 	$	121	 	 	$	378	 	
Amounts available to WPX Energy, Inc. common stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	$	(30	)	 	$	(83	)	 	$	(6	)	 	$	353	 	 	$	234	 	 	$	(48	)	 	$	305	 	 	$	122	 	 	$	379	 	
Income (loss) from discontinued operations	 	 	(89	)	 	 	(2	)	 	 	(1	)	 	 	1	 	 	 	(91	)	 	 	-	 	 	 	-	 	 	 	(1	)	 	 	(1	)	
Net income (loss)	 	$	(119	)	 	$	(85	)	 	$	(7	)	 	$	354	 	 	$	143	 	 	$	(48	)	 	$	305	 	 	$	121	 	 	$	378	 	
 
Summary of Production Volumes (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil (MBbls)	 	 	5,920	 	 	 	7,352	 	 	 	7,670	 	 	 	8,828	 	 	 	29,769	 	 	 	8,648	 	 	 	8,905	 	 	 	9,991	 	 	 	27,543	 	
Natural gas (MMcf)	 	 	11,908	 	 	 	13,854	 	 	 	14,759	 	 	 	18,844	 	 	 	59,365	 	 	 	18,210	 	 	 	18,736	 	 	 	20,874	 	 	 	57,821	 	
Natural gas liquids (MBbls)	 	 	1,340	 	 	 	1,713	 	 	 	1,259	 	 	 	2,420	 	 	 	6,733	 	 	 	2,288	 	 	 	2,493	 	 	 	2,486	 	 	 	7,267	 	
Combined equivalent volumes (MBoe) (2) 	 	 	9,245	 	 	 	11,374	 	 	 	11,389	 	 	 	14,389	 	 	 	46,396	 	 	 	13,971	 	 	 	14,520	 	 	 	15,955	 	 	 	44,446	 	
Per day volumes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil (MBbls/d)	 	 	65.8	 	 	 	80.8	 	 	 	83.4	 	 	 	96.0	 	 	 	81.6	 	 	 	96.1	 	 	 	97.9	 	 	 	108.6	 	 	 	100.9	 	
Natural gas (MMcf/d)	 	 	132.3	 	 	 	152.2	 	 	 	160.4	 	 	 	204.8	 	 	 	162.6	 	 	 	202.3	 	 	 	205.9	 	 	 	226.9	 	 	 	211.8	 	
Natural gas liquids (MBbls/d)	 	 	14.9	 	 	 	18.8	 	 	 	13.7	 	 	 	26.3	 	 	 	18.4	 	 	 	25.4	 	 	 	27.4	 	 	 	27.0	 	 	 	26.6	 	
Combined equivalent volumes (Mboe/d) (2) 	 	 	102.7	 	 	 	125.0	 	 	 	123.8	 	 	 	156.4	 	 	 	127.1	 	 	 	155.2	 	 	 	159.6	 	 	 	173.4	 	 	 	162.8	 	
 
(1)	Excludes activity classified as discontinued operations.	
(2)	Mboe are calculated using the ratio of six Mcf to one barrel of oil.	
 
Realized average price per unit (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil (per barrel)	 	$	60.91	 	 	$	63.63	 	 	$	65.52	 	 	$	52.05	 	 	$	60.14	 	 	$	51.92	 	 	$	57.42	 	 	$	53.92	 	 	$	54.42	 	
Natural gas (per Mcf)	 	$	1.44	 	 	$	1.12	 	 	$	1.22	 	 	$	1.90	 	 	$	1.46	 	 	$	1.36	 	 	$	0.88	 	 	$	0.77	 	 	$	0.99	 	
Natural gas liquids (per barrel)	 	$	22.14	 	 	$	20.94	 	 	$	26.68	 	 	$	20.14	 	 	$	21.97	 	 	$	14.47	 	 	$	12.21	 	 	$	10.73	 	 	$	12.42	 	
 
(1)	Excludes activity classified as discontinued operations.	
 
Expenses per Boe (1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	$	17.38	 	 	$	17.31	 	 	$	17.01	 	 	$	15.68	 	 	$	16.75	 	 	$	15.68	 	 	$	15.24	 	 	$	15.11	 	 	$	15.33	 	
Lease and facility operating	 	$	5.97	 	 	$	5.20	 	 	$	5.92	 	 	$	6.25	 	 	$	5.85	 	 	$	6.13	 	 	$	6.50	 	 	$	6.02	 	 	$	6.21	 	
Gathering, processing and transportation	 	$	1.93	 	 	$	1.79	 	 	$	2.29	 	 	$	2.95	 	 	$	2.30	 	 	$	2.98	 	 	$	2.78	 	 	$	3.10	 	 	$	2.96	 	
Taxes other than income	 	$	3.21	 	 	$	3.67	 	 	$	3.96	 	 	$	2.83	 	 	$	3.39	 	 	$	2.79	 	 	$	2.95	 	 	$	2.90	 	 	$	2.88	 	
General and administrative:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General and administrative expenses	 	$	3.84	 	 	$	3.06	 	 	$	3.17	 	 	$	3.00	 	 	$	3.22	 	 	$	2.81	 	 	$	2.73	 	 	$	2.69	 	 	$	2.74	 	
Equity-based compensation	 	 	0.80	 	 	 	0.83	 	 	 	0.68	 	 	 	0.55	 	 	 	0.70	 	 	 	0.56	 	 	 	0.56	 	 	 	0.54	 	 	 	0.55	 	
Total general and administrative	 	$	4.64	 	 	$	3.89	 	 	$	3.85	 	 	$	3.55	 	 	$	3.92	 	 	$	3.37	 	 	$	3.29	 	 	$	3.23	 	 	$	3.29	 	
Interest expense	 	$	4.95	 	 	$	3.43	 	 	$	3.36	 	 	$	2.75	 	 	$	3.51	 	 	$	2.95	 	 	$	2.76	 	 	$	2.37	 	 	$	2.68	 	
 
(1)	Excludes activity classified as discontinued operations.	

 

 
WPX Energy, Inc.
Reconciliation of NON-GAAP Measures
(UNAUDITED)

 	 	2018	 	 	2019	 	
(Dollars in millions, except per share amounts)	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	Year	 	
Reconciliation of adjusted income (loss) from continuing operations available to common stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations available to WPX Energy, Inc. common stockholders - reported	 	$	(30	)	 	$	(83	)	 	$	(6	)	 	$	353	 	 	$	234	 	 	$	(48	)	 	$	305	 	 	$	122	 	 	$	379	 	
Pre-tax adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (gains) losses on sales of assets and equity method investment transactions	 	$	1	 	 	$	(1	)	 	$	(1	)	 	$	(2	)	 	$	(3	)	 	$	(126	)	 	$	(247	)	 	$	-	 	 	$	(373	)	
Loss on extinguishment of debt	 	$	-	 	 	$	71	 	 	$	-	 	 	$	-	 	 	$	71	 	 	$	-	 	 	$	-	 	 	$	47	 	 	$	47	 	
Impact of pending settlement offer	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	11	 	 	$	11	 	
Voluntary exit program	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	3	 	 	$	3	 	
Net (gain) loss on derivatives	 	$	69	 	 	$	154	 	 	$	139	 	 	$	(443	)	 	$	(81	)	 	$	207	 	 	$	(78	)	 	$	(175	)	 	$	(46	)	
Net cash received (paid) related to settlement of derivatives	 	$	(55	)	 	$	(78	)	 	$	(85	)	 	$	(19	)	 	$	(237	)	 	$	9	 	 	$	(10	)	 	$	4	 	 	$	3	 	
Total pre-tax adjustments	 	$	15	 	 	$	146	 	 	$	53	 	 	$	(464	)	 	$	(250	)	 	$	90	 	 	$	(335	)	 	$	(110	)	 	$	(355	)	
Less tax effect for above items	 	$	(3	)	 	$	(33	)	 	$	(13	)	 	$	107	 	 	$	58	 	 	$	(20	)	 	$	76	 	 	$	25	 	 	$	81	 	
Impact of state deferred tax rate changes and state related adjustments	 	$	(4	)	 	$	-	 	 	$	-	 	 	$	(1	)	 	$	(5	)	 	$	(1	)	 	$	-	 	 	$	-	 	 	$	(1	)	
Impact of tax valuation allowance (annual effective tax rate method)	 	$	-	 	 	$	-	 	 	$	-	 	 	$	2	 	 	$	2	 	 	$	1	 	 	$	(9	)	 	$	1	 	 	$	(7	)	
Adjustment for estimated annual effective tax rate method	 	$	-	 	 	$	(7	)	 	$	(5	)	 	$	12	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	
Total adjustments, after tax	 	$	8	 	 	$	106	 	 	$	35	 	 	$	(344	)	 	$	(195	)	 	$	70	 	 	$	(268	)	 	$	(84	)	 	$	(282	)	
Adjusted income (loss) from continuing operations available to common stockholders	 	$	(22	)	 	$	23	 	 	$	29	 	 	$	9	 	 	$	39	 	 	$	22	 	 	$	37	 	 	$	38	 	 	$	97	 	

Reconciliation of adjusted diluted income (loss) per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations - diluted earnings per share - reported	 	$	(0.07	)	 	$	(0.21	)	 	$	(0.01	)	 	$	0.83	 	 	$	0.57	 	 	$	(0.11	)	 	$	0.72	 	 	$	0.29	 	 	$	0.89	 	
Impact of adjusted diluted weighted-average shares	 	$	-	 	 	$	0.01	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	
Pretax adjustments (1):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (gains) losses on sales of assets and equity method investment transactions	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	(0.01	)	 	$	(0.30	)	 	$	(0.58	)	 	$	-	 	 	$	(0.88	)	
Loss on extinguishment of debt	 	$	-	 	 	$	0.18	 	 	$	-	 	 	$	-	 	 	$	0.17	 	 	$	-	 	 	$	-	 	 	$	0.11	 	 	$	0.11	 	
Impact of pending settlement offer	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	0.03	 	 	$	0.03	 	
Voluntary exit program	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	
Net (gain) loss on derivatives	 	$	0.17	 	 	$	0.38	 	 	$	0.33	 	 	$	(1.04	)	 	$	(0.20	)	 	$	0.49	 	 	$	(0.19	)	 	$	(0.41	)	 	$	(0.11	)	
Net cash received (paid) related to settlement of derivatives	 	$	(0.13	)	 	$	(0.20	)	 	$	(0.20	)	 	$	(0.06	)	 	$	(0.57	)	 	$	0.02	 	 	$	(0.02	)	 	$	0.01	 	 	$	0.01	 	
Total pretax adjustments	 	$	0.04	 	 	$	0.36	 	 	$	0.13	 	 	$	(1.10	)	 	$	(0.61	)	 	$	0.21	 	 	$	(0.79	)	 	$	(0.26	)	 	$	(0.84	)	
Less tax effect for above items	 	$	(0.02	)	 	$	(0.08	)	 	$	(0.04	)	 	$	0.26	 	 	$	0.14	 	 	$	(0.05	)	 	$	0.18	 	 	$	0.06	 	 	$	0.20	 	
Impact of state deferred tax rate changes and state related adjustments	 	$	(0.01	)	 	$	-	 	 	$	-	 	 	$	-	 	 	$	(0.01	)	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	
Impact of tax valuation allowance (annual effective tax rate method)	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	(0.02	)	 	$	-	 	 	$	(0.02	)	
Adjustment for estimated annual effective tax rate method	 	$	-	 	 	$	(0.02	)	 	$	(0.01	)	 	$	0.03	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	
Total adjustments, after-tax	 	$	0.01	 	 	$	0.26	 	 	$	0.08	 	 	$	(0.81	)	 	$	(0.48	)	 	$	0.16	 	 	$	(0.63	)	 	$	(0.20	)	 	$	(0.66	)	
Adjusted diluted income (loss) per common share	 	$	(0.06	)	 	$	0.06	 	 	$	0.07	 	 	$	0.02	 	 	$	0.09	 	 	$	0.05	 	 	$	0.09	 	 	$	0.09	 	 	$	0.23	 	
Reported diluted weighted-average shares (millions)	 	 	398.6	 	 	 	400.0	 	 	 	414.0	 	 	 	424.0	 	 	 	411.7	 	 	 	421.0	 	 	 	423.5	 	 	 	421.8	 	 	 	423.0	 	
Effect of dilutive securities due to adjusted income (loss) from continuing operations available to common stockholders	 	 	-	 	 	 	3.1	 	 	 	3.7	 	 	 	-	 	 	 	-	 	 	 	2.6	 	 	 	-	 	 	 	-	 	 	 	-	 	
Adjusted diluted weighted-average shares (millions)	 	 	398.6	 	 	 	403.1	 	 	 	417.7	 	 	 	424.0	 	 	 	411.7	 	 	 	423.6	 	 	 	423.5	 	 	 	421.8	 	 	 	423.0	 	

(1) Per share impact is based on adjusted diluted weighted-average shares.

Reconciliation of Adjusted EBITDAX	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) - reported	 	$	(115	)	 	$	(81	)	 	$	(7	)	 	$	354	 	 	$	151	 	 	$	(48	)	 	$	305	 	 	$	121	 	 	$	378	 	
Interest expense	 	 	46	 	 	 	39	 	 	 	38	 	 	 	40	 	 	 	163	 	 	 	41	 	 	 	40	 	 	 	38	 	 	 	119	 	
Provision (benefit) for income taxes	 	 	(15	)	 	 	(33	)	 	 	(8	)	 	 	130	 	 	 	74	 	 	 	(14	)	 	 	84	 	 	 	39	 	 	 	109	 	
Depreciation, depletion and amortization	 	 	161	 	 	 	197	 	 	 	193	 	 	 	226	 	 	 	777	 	 	 	219	 	 	 	221	 	 	 	241	 	 	 	681	 	
Exploration expenses	 	 	19	 	 	 	17	 	 	 	18	 	 	 	21	 	 	 	75	 	 	 	24	 	 	 	24	 	 	 	22	 	 	 	70	 	
EBITDAX	 	 	96	 	 	 	139	 	 	 	234	 	 	 	771	 	 	 	1,240	 	 	 	222	 	 	 	674	 	 	 	461	 	 	 	1,357	 	
Net (gains) losses on sales of assets and equity method investment transactions	 	 	1	 	 	 	(1	)	 	 	(1	)	 	 	(2	)	 	 	(3	)	 	 	(126	)	 	 	(247	)	 	 	-	 	 	 	(373	)	
Loss on extinguishment of debt	 	 	-	 	 	 	71	 	 	 	-	 	 	 	-	 	 	 	71	 	 	 	-	 	 	 	-	 	 	 	47	 	 	 	47	 	
Impact of pending settlement offer	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	11	 	 	 	11	 	
Voluntary exit program	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3	 	 	 	3	 	
Net (gain) loss on derivatives	 	 	69	 	 	 	154	 	 	 	139	 	 	 	(443	)	 	 	(81	)	 	 	207	 	 	 	(78	)	 	 	(175	)	 	 	(46	)	
Net cash received (paid) related to settlement of derivatives	 	 	(55	)	 	 	(78	)	 	 	(85	)	 	 	(19	)	 	 	(237	)	 	 	9	 	 	 	(10	)	 	 	4	 	 	 	3	 	
(Income) loss from discontinued operations	 	 	89	 	 	 	2	 	 	 	1	 	 	 	(1	)	 	 	91	 	 	 	-	 	 	 	-	 	 	 	1	 	 	 	1	 	
Adjusted EBITDAX	 	$	200	 	 	$	287	 	 	$	288	 	 	$	306	 	 	$	1,081	 	 	$	312	 	 	$	339	 	 	$	352	 	 	$	1,003	 	

 

WPX Energy, Inc.
Consolidated Statements of Operations
(Unaudited)
 
 	 	Three months ended September 30,	 	 	Nine months ended September 30,	 	
 	 	2019	 	 	2018	 	 	2019	 	 	2018	 	
 	 	(Millions, except per-share amounts)	 	
Revenues:	 	 	 	 	 	 	 	 	 	 	 	 	
Product revenues:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Oil sales	 	$	539	 	 	$	503	 	 	$	1,499	 	 	$	1,331	 	
Natural gas sales	 	 	16	 	 	 	18	 	 	 	57	 	 	 	51	 	
Natural gas liquid sales	 	 	26	 	 	 	33	 	 	 	90	 	 	 	99	 	
     Total product revenues	 	 	581	 	 	 	554	 	 	 	1,646	 	 	 	1,481	 	
Net gain (loss) on derivatives	 	 	175	 	 	 	(139	)	 	 	46	 	 	 	(362	)	
Commodity management	 	 	38	 	 	 	68	 	 	 	155	 	 	 	168	 	
Other	 	 	1	 	 	 	1	 	 	 	2	 	 	 	1	 	
Total revenues	 	 	795	 	 	 	484	 	 	 	1,849	 	 	 	1,288	 	
Costs and expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	 	241	 	 	 	193	 	 	 	681	 	 	 	551	 	
Lease and facility operating	 	 	96	 	 	 	68	 	 	 	276	 	 	 	182	 	
Gathering, processing and transportation	 	 	49	 	 	 	26	 	 	 	131	 	 	 	64	 	
Taxes other than income	 	 	46	 	 	 	45	 	 	 	128	 	 	 	116	 	
Exploration	 	 	22	 	 	 	18	 	 	 	70	 	 	 	54	 	
General and administrative (including equity-based compensation of $9 million, $8 million, $25 million and $25 million for the respective periods)	 	 	51	 	 	 	44	 	 	 	146	 	 	 	131	 	
Commodity management	 	 	36	 	 	 	63	 	 	 	126	 	 	 	156	 	
Other - net	 	 	12	 	 	 	1	 	 	 	17	 	 	 	5	 	
Total costs and expenses	 	 	553	 	 	 	458	 	 	 	1,575	 	 	 	1,259	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	 	 	242	 	 	 	26	 	 	 	274	 	 	 	29	 	
Interest expense	 	 	(38	)	 	 	(38	)	 	 	(119	)	 	 	(123	)	
Loss on extinguishment of debt	 	 	(47	)	 	 	-	 	 	 	(47	)	 	 	(71	)	
Gains on equity method investment transactions	 	 	-	 	 	 	-	 	 	 	373	 	 	 	-	 	
Investment income (loss) and other	 	 	4	 	 	 	(2	)	 	 	7	 	 	 	(2	)	
Income (loss) from continuing operations before income taxes	 	 	161	 	 	 	(14	)	 	 	488	 	 	 	(167	)	
Provision (benefit) for income taxes	 	 	39	 	 	 	(8	)	 	 	109	 	 	 	(56	)	
Income (loss) from continuing operations	 	 	122	 	 	 	(6	)	 	 	379	 	 	 	(111	)	
Loss from discontinued operations	 	 	(1	)	 	 	(1	)	 	 	(1	)	 	 	(92	)	
Net income (loss)	 	 	121	 	 	 	(7	)	 	 	378	 	 	 	(203	)	
Less: Dividends on preferred stock	 	 	-	 	 	 	-	 	 	 	-	 	 	 	8	 	
Net income (loss) available to WPX Energy, Inc. common stockholders	 	$	121	 	 	$	(7	)	 	$	378	 	 	$	(211	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amounts available to WPX Energy, Inc. common stockholders:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	$	122	 	 	$	(6	)	 	$	379	 	 	$	(119	)	
Loss from discontinued operations	 	 	(1	)	 	 	(1	)	 	 	(1	)	 	 	(92	)	
Net income (loss)	 	$	121	 	 	$	(7	)	 	$	378	 	 	$	(211	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings (loss) per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	$	0.29	 	 	$	(0.01	)	 	$	0.90	 	 	$	(0.29	)	
Loss from discontinued operations	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(0.23	)	
Net income (loss)	 	$	0.29	 	 	$	(0.01	)	 	$	0.90	 	 	$	(0.52	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic weighted-average shares	 	 	420.8	 	 	 	414.0	 	 	 	421.4	 	 	 	404.3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings (loss) per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	$	0.29	 	 	$	(0.01	)	 	$	0.89	 	 	$	(0.29	)	
Loss from discontinued operations	 	 	-	 	 	 	-	 	 	 	-	 	 	 	(0.23	)	
Net income (loss)	 	$	0.29	 	 	$	(0.01	)	 	$	0.89	 	 	$	(0.52	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted-average shares	 	 	421.8	 	 	 	414.0	 	 	 	423.0	 	 	 	404.3	 	

 

 
WPX Energy, Inc.
Consolidated Balance Sheets
(Unaudited)
 
 	 	September 30,
2019	 	 	December 31,
2018	 	
 	 	(Millions)	 	
ASSETS	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	13	 	 	$	3	 	
Accounts receivable, net of allowance	 	 	553	 	 	 	405	 	
Derivative assets	 	 	169	 	 	 	174	 	
Inventories	 	 	46	 	 	 	48	 	
Assets classified as held for sale	 	 	-	 	 	 	79	 	
Other	 	 	35	 	 	 	30	 	
Total current assets	 	 	816	 	 	 	739	 	
Investments	 	 	51	 	 	 	167	 	
Properties and equipment (successful efforts method of accounting)	 	 	10,985	 	 	 	9,949	 	
Less:  Accumulated depreciation, depletion and amortization	 	 	(3,411	)	 	 	(2,683	)	
    Properties and equipment, net	 	 	7,574	 	 	 	7,266	 	
Derivative assets	 	 	56	 	 	 	4	 	
Other noncurrent assets	 	 	123	 	 	 	27	 	
Total assets	 	$	8,620	 	 	$	8,203	 	
 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Accounts payable	 	$	686	 	 	$	514	 	
Accrued and other current liabilities	 	 	209	 	 	 	178	 	
Derivative liabilities	 	 	35	 	 	 	23	 	
Total current liabilities	 	 	930	 	 	 	715	 	
Deferred income taxes	 	 	307	 	 	 	201	 	
Long-term debt, net	 	 	2,201	 	 	 	2,485	 	
Derivative liabilities	 	 	7	 	 	 	14	 	
Other noncurrent liabilities	 	 	532	 	 	 	487	 	
 	 	 	 	 	 	 	 	 	
Equity:	 	 	 	 	 	 	 	 	
Stockholders' equity:	 	 	 	 	 	 	 	 	
Preferred stock (100 million shares authorized at $0.01 par value; no shares outstanding)	 	 	-	 	 	 	-	 	
Common stock (2 billion shares authorized at $0.01 par value; 418.2 million shares and 420.6 million shares issued and outstanding at September 30, 2019 and December 31, 2018)	 	 	4	 	 	 	4	 	
Additional paid-in-capital	 	 	7,698	 	 	 	7,734	 	
Accumulated deficit	 	 	(3,059	)	 	 	(3,437	)	
Total stockholders' equity	 	 	4,643	 	 	 	4,301	 	
Total liabilities and equity	 	$	8,620	 	 	$	8,203	 	

 

 
WPX Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)

 	 	Nine Months ended September 30,	 	
 	 	2019	 	 	2018	 	
 	 	(Millions)	 	
Operating Activities(a)	 	 	 	 	 	 	 	 	
Net income (loss)	 	$	378	 	 	$	(203	)	
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	 	 	 	 	 	 	 	 	
Depreciation, depletion and amortization	 	 	681	 	 	 	559	 	
Deferred income tax (provision) benefit	 	 	106	 	 	 	(84	)	
Provision for impairment of properties and equipment (including certain exploration expenses)	 	 	62	 	 	 	53	 	
Gains related to equity method investment transactions	 	 	(373	)	 	 	-	 	
Net (gain) loss on derivatives	 	 	(46	)	 	 	362	 	
Net settlements related to derivatives	 	 	3	 	 	 	(218	)	
Amortization of stock-based awards	 	 	26	 	 	 	26	 	
Loss on extinguishment of debt	 	 	47	 	 	 	71	 	
Net loss on sales of assets including discontinued operations	 	 	-	 	 	 	150	 	
Cash provided by (used in) operating assets and liabilities:	 	 	 	 	 	 	 	 	
Accounts receivable	 	 	(193	)	 	 	(61	)	
Inventories	 	 	1	 	 	 	(15	)	
Other current assets	 	 	(2	)	 	 	5	 	
Accounts payable	 	 	225	 	 	 	71	 	
Federal income taxes receivable	 	 	38	 	 	 	-	 	
Accrued and other current liabilities	 	 	(40	)	 	 	(48	)	
Liabilities accrued in prior years for retained transportation and gathering contracts related to discontinued operations	 	 	(22	)	 	 	(37	)	
Other, including changes in other noncurrent assets and liabilities	 	 	15	 	 	 	21	 	
Net cash provided by operating activities (a)	 	 	906	 	 	 	652	 	
 	 	 	 	 	 	 	 	 	
Investing Activities(a)	 	 	 	 	 	 	 	 	
Capital expenditures(b)	 	 	(1,090	)	 	 	(1,013	)	
Proceeds from sales of assets and equity method investment transactions	 	 	589	 	 	 	682	 	
Contributions to or purchases of equity method investments	 	 	(18	)	 	 	(72	)	
Distributions from equity method investments	 	 	11	 	 	 	-	 	
Other	 	 	1	 	 	 	-	 	
Net cash used in investing activities (a)	 	 	(507	)	 	 	(403	)	
 	 	 	 	 	 	 	 	 	
Financing Activities	 	 	 	 	 	 	 	 	
Proceeds from common stock	 	 	1	 	 	 	9	 	
Dividends paid on preferred stock	 	 	-	 	 	 	(11	)	
Payments for repurchases of common stock	 	 	(43	)	 	 	-	 	
Borrowings on credit facility	 	 	1,281	 	 	 	726	 	
Payments on credit facility	 	 	(1,611	)	 	 	(638	)	
Proceeds from long-term debt, net of discount	 	 	593	 	 	 	494	 	
Payments for retirement of long-term debt, including premium	 	 	(594	)	 	 	(986	)	
Taxes paid for shares withheld	 	 	(16	)	 	 	(13	)	
Payments for debt issuance costs and credit facility amendment fees	 	 	(2	)	 	 	(10	)	
Other	 	 	6	 	 	 	29	 	
Net cash used in financing activities	 	 	(385	)	 	 	(400	)	
 	 	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents and restricted cash	 	 	14	 	 	 	(151	)	
Cash and cash equivalents and restricted cash at beginning of period	 	 	18	 	 	 	201	 	
Cash and cash equivalents and restricted cash at end of period	 	$	32	 	 	$	50	 	
 
(a) Amounts reflect continuing and discontinued operations unless otherwise noted.	 	 	 	 	 	 	 	 	
(b) Increase to properties and equipment	 	$	(1,030	)	 	$	(1,074	)	
   Changes in related accounts payable and accounts receivable	 	 	(60	)	 	 	61	 	
   Capital expenditures	 	$	(1,090	)	 	$	(1,013	)