WPX Energy reports increased oil production but an $83 million net loss for shareholders

Hedging activities led to a second quarter 2018 net loss of $83 million for common shareholders for Tulsa-based WPX Energy.

The company said the loss was driven by $154 million of net losses associated with its hedge book resulting from higher forward oil rices along with a $71 million loss on extinguishment of debt.

For the first half of the year, WPX posted a net loss from continuing operations attributable to common shareholders of $113 million including $223 million of net pre-tax losses associated with the hedging activity.

Total product revenues of $972 million during the first half of 2018 were 124 percent higher than the $413 million in the first half of 2017. Oil revenues of $323 million during the first half of the year were 135 percent higher than the same period a year ago.

The company updated its drilling activity in the Permian Basin where it is drilling longer laterals as a result of acreage swaps. Its Delaware production was up 18 percent from the first quarter and 83 percent higher than a year ago. WPX had 20 wells with first sales in the basin in the second quarter.

It said on the Lindsay pad, a 1.5 mile lateral posted a high of nearly 3,600 barrels of oil per day during initial production. The well produced nearly 50,000 barrels of oil in its first 20 days.

WPX also decided to raise its full-year 2018 oil production guidance by 3 percent to reach an average of 78,000-82,000 bbl/d. The company also updated its 2018 capital spending forecast to nearly $1.4 billion driven by additional investments for non-operated wells in the Delaware Basin along with larger completions in the Williston Basin.

Read more here about the WPX quarterly report.