TRDC LLC to Joint Venture with WPX Energy to Develop Colorado Trail Ridge Properties
Aug 26 14
G2X Energy, through their subsidiary TRDC LLC, announced an agreement with Tulsa based WPX Energy to jointly develop WPX's Trail Ridge Properties located in western Colorado's Piceance Basin Highlands. WPX, who will remain as operator, is receiving approximately $40MM in cash for 49% of its working interest in approximately 100 proved developed producing Trail Ridge wells. These wells represent approximately 26 billion cubic feet equivalent of proved developed producing reserves. The drilling program has 1,300 remaining drilling locations. The parties plan to jointly develop 8 wells this year; 25 wells in 2015; 50 wells in 2016 and 100 wells per year in 2017 and beyond. The joint development agreement is for the Williams Fork and Iles formations only. G2X estimates that the drilling program will include 230 billion cubic feet equivalent of net proved undeveloped reserves and an additional 620 billion cubic feet equivalent of net probable reserves. In connection with the drilling program, G2X has also committed to a $170 million drilling carry on nearly 400 future wells. WPX will pay 28% of the Trail Ridge development and receive 51% of the production and reserves until G2X has completed its drilling carry funding commitment.
Wpx Energy, Inc. Acquires Oil Play in San Juan Basin
Aug 19 14
WPX Energy, Inc. is acquiring 26,000 additional acres of oil play in the San Juan Basin while also selling all of its remaining mature coal bed methane holdings in the Powder River Basin. The company reported that the separate transactions are part of a focus on margin improvements. WPX is selling the Powder River holdings for $155 million in cash while increasing its San Juan oil position.
WPX Energy, Inc. Announces Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Production Guidance for the Full Year of 2014
Aug 5 14
WPX Energy, Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported total product revenues of $595 million against $525 million a year ago. Total revenues were $814 million against $815 million a year ago. Operating loss was $179 million against operating income of $51 million a year ago. Loss before income taxes was $201 million against income before tax of $33 million a year ago. Net loss attributable to company was $135 million against net income attributable to company of $18 million a year ago. Loss per basic and diluted share was $0.66 against earnings per basic and diluted share of $0.09 a year ago. Results for the second quarter and first six months of 2014 were impacted by a $195 million before-tax loss, or an after-tax loss of $0.61 per share, associated with the sale of a portion of WPX's working interests in certain Piceance Basin natural gas wells, along with $36 million in impairments of domestic exploratory well costs and leasehold, or an after-tax loss of $0.11 per share. Excluding unrealized mark-to-market gains (losses), the loss on the sale of the working interest, and impairments of exploratory well costs and leasehold, the company had adjusted income from continuing operations of $11 million, or income of $0.06 per share on a diluted basis, for second-quarter 2014, compared with an adjusted loss from continuing operations of $44 million, or a loss of $0.22 per share, for the same period in 2013. Adjusted EBITDAX (a non-GAAP measure) for second-quarter 2014 was $294 million, an increase of 40% compared with $210 million for the same period in 2013. EBITDAX was $99 million against $308 million a year ago. The company made approximately $376 million of capital investments during second-quarter 2014, consistent with its guidance range of $355 million to $410 million.
For the six months, the company reported total product revenues of $1,215 million against $985 million a year ago. Total revenues were $1,801 million against $1,446 million a year ago. Operating loss was $112 million against operating income of $107 million a year ago. Loss before income taxes was $159 million against $143 million a year ago. Net loss attributable to company was $117 million against $98 million a year ago. Loss per basic and diluted share was $0.58 against $0.49 a year ago. Net cash provided by operating activities was $520 million against $289 million a year ago. Capital expenditures was $728 million against $548 million a year ago. The company had adjusted income from continuing operations of $55 million, or income of $0.27 per share on a diluted basis, compared with an adjusted loss of $95 million, or a loss of $0.47 per share, for the first six months of 2013. Adjusted EBITDAX was $614 million, up 49% compared with $413 million for the same period in 2013. The primary factors contributing to the increase in 2014 adjusted EBITDAX were increased domestic oil volumes and the corresponding increase in domestic oil revenues, as well as higher net realized average prices for natural gas. EBITDAX was $392 million against $408 million a year ago.
The company now forecasting total production on an equivalent basis of 1,209 MMcfe/d to 1,256 MMcfe/d for full-year 2014, which includes the impact of the sale of a portion of the company's working interests in the Piceance Basin and a higher growth rate for domestic oil production.
The company's overall domestic and international production for second-quarter 2014 was 1,249 MMcfe/d, up slightly from the sequential quarter and exceeding the company's guidance for volumes of 1,183 to 1,195 MMcfe/d. Production figures for 2014 include a one-month impact of the recent sale of working interests in some of WPX's Piceance Basin natural gas wells. Total oil and liquids (NGL) production increased 4,700 barrels per day from the first quarter 2014, growing from 42,600 barrels per day in the first three months of 2014 to 47,300 barrels per day in the second quarter, accounting for 23% of WPX's total production volumes. Consolidated natural gas production of 965 MMcf/d in second-quarter 2014 exceeded the company's quarterly guidance of 918 to 925 MMcf/d and was down slightly vs. sequential quarter production of 975 MMcfd.