Tulsa’s WPX Energy is reporting a 54 percent increase in third quarter oil production compared to a year ago but also $6 million in losses for the quarter. The loss figured to a penny a share on a diluted basis. However, WPX still had quarterly oil revenues surpassing half-a-billion dollars for the first time in company history.
Oil and NGL sales of $536 million accounted for 97 percent of WPX’s third-quarter 2018 total product revenues of $554 million. Quarterly oil sales of $503 million grew 7 percent vs. the most recent quarter and were 131 percent higher than the same period a year ago.
Total product revenues of $1,481 million during the first three quarters of 2018 were 124 percent higher than $660 million for the same period in 2017. Oil revenues of $1,331 million during the first three quarters of 2018 were 133 percent higher than the same period a year ago.
For the first three quarters of the year, WPX posted a net loss from continuing operations attributable to common shareholders of $119 million, or a loss of $0.29 per share on a diluted basis, including $362 million of net pre-tax losses associated with its hedging activities and a $71 million pre-tax loss on extinguishment of debt.
Adjusted net income from continuing operations for the first three quarters of 2018 was $30 million, or income of $0.07 per share. A reconciliation accompanies this press release.
During the third quarter, lease operating expenses increased by $9 million vs. the most recent quarter, including unplanned workover activity and incremental water recycling expense.
The company blamed most of the loss on $139 million of non-cash pre-tax net losses associated with its hedge book resulting from higher forward oil losses. The company’s adjusted net income from continuing operations for the quarter was $29 million or income of 7 cents a share.
The third quarter oil volumes were 83,400 barrels a day which was a 3 percent increase over the second quarter. But this week, the company said its oil volumes were approaching 90,000 bbl/d reflecting the benefit of Williston Basin first sales including the seven-well North Hidatsa pad.
WPX’s guidance for 2019 anticipates oil production to average 100,000-105,000 bbl/d over the course of the full year.
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