WPX Energy’s 1Q16 earnings miss estimates
WPX Energy (WPX) announced its 1Q16 earnings on May 4, 2016, after the Market closed. WPX reported an adjusted loss of $0.21 per share, which was $0.02 lower than the analyst consensus for a loss of $0.19 per share. WPX Energy’s 1Q16 earnings are lower by $0.30 per share compared to its 1Q15 profit of $0.09 per share. But when compared sequentially with 4Q15, WPX Energy’s 1Q16 earnings are higher by $0.03 per share.
WPX Energy’s 1Q16 revenues beat estimates
For 1Q16, WPX reported adjusted revenues of ~$292 million. That’s ~5% higher than Wall Street analysts’ revenue consensus of ~$277 million. WPX Energy’s 1Q16 revenues are lower by ~51% when compared to 1Q15 revenues of ~$602 million. Even when compared sequentially with 4Q15, WPX’s 1Q16 revenues are lower by ~43%.
WPX Energy’s earnings trend
As you can see in the above graph, WPX Energy has reported much lower earnings since 2Q15 due to lower realized crude oil (USO) (UWTI) (DWTI) and natural gas (UNG) (BOIL) prices. Since 1Q13, WPX Energy has beaten earnings expectations ~38% of the time.
Due to the steep downward trend in energy prices, almost all upstream companies have reported declines in their 4Q15 adjusted revenues. Below are the year-over-year declines in revenues for some of WPX’s peers:
- EnCana (ECA): ~54%
- Ultra Petroleum (UPL): ~35%
- Memorial Resource Development (MRD): ~7%
- EV Energy Partners (EVEP): ~32%
The Direxion Daily S&P Oil & Gas Exploration & Production Bear 3x ETF (DRIP) is a leveraged inverse ETF that invests in oil and gas exploration and production companies. The First Trust ISE-Revere Natural Gas ETF (FCG) invests in natural gas producers.
In this series
Having analyzed WPX Energy’s 1Q16 earnings performance, we’ll move on to WPX’s operational performance and Wall Street analyst ratings. We’ll also be looking at WPX Energy’s stock price and how it has reacted to past earnings miss.
Next, let’s take a look at WPX’s operational performance for 1Q16.