Even with a 68 percent increase in oil production from 2016 to 2017, Tulsa-based WPX Energy reported a fourth quarter loss this week of $35 million. It translated into a 9-cent a share loss on a diluted basis. Earnings before taxes totaled $255 million which was 89 percent more than a year ago.
For all of 2017, WPX Energy reported a net loss of $26 million.
The company said the adjusted loss for the quarter was $9 million or $0.02 a share. This came even after WPX saw its fourth-quarter 2017 oil volumes reach 75,200 barrels a day. That’s 68 percent more than a year ago and also 16 percent higher than the third quarter of 2017.
“Our disciplined execution against our multi-year plan continues to deliver new catalysts for long-term value creation. These drivers include transitioning to longer laterals in the Delaware Basin, the incredible performance from our Williston wells, our forward-looking approach to midstream infrastructure and a fast track to dramatically reduced leverage,” said Rick Muncrief, chairman and chief executive officer.
Also in the fourth quarter of 2017, the company closed on the formation of a Permian Basin midstream joint venture with Howard Energy Partners. Nearly 90 percent of the 50-mile pipeline has been constructed.
It also completed the divestiture of its legacy natural gas position in the San Juan Basin of northern New Mexico and southern Colorado.
WPX received $349 million from Howard in the joint venture transaction and $175 million on the legacy gas sale subject to post-closing adjustments.
Also in January 2018, WPX signed an agreement to divest certain non-operated mineral interests in the Williston Basin for $20 million. Closing is expected to occur in the first quarter.
The in-service date for the first of two 200 MMcf/d cryogenic processing trains at the Reeves County gas plant is on track for mid-year. Much of the primary equipment already is set on foundations at the site.
In January, WPX also exercised an option to further its involvement in WhiteWater Midstream – owner of the Agua Blanca Pipeline – by increasing its ownership from 10 to 20 percent.