WPX Energy’s 2Q16 production
For 2Q16, WPX Energy (WPX) reported total production of 85.2 Mboepd (thousand barrels of oil equivalent per day), which is lower by ~48% when compared with 2Q15 production of 164.8 Mboepd.
However, WPX Energy’s 2Q16 production is higher sequentially by ~6% when compared with 1Q16.
In 1Q16, WPX Energy divested its Piceance Basin operations. The production volumes from its Piceance Basin operations are reflected in WPX’s financial and operations results until 4Q15. In 4Q15, Piceance Basin operations accounted for ~52% of WPX Energy’s total production.
When compared on a continuing basis, WPX Energy’s 2Q16 production of 85.2 Mboepd is ~34% higher when compared with 2Q15 production of 63.7 Mboepd.
WPX Energy’s increased crude oil in the production mix
For 2Q16, WPX Energy reported ~48% crude oil in its production mix, which is much higher when compared with only ~20% crude oil in 2Q15 production mix. For 2Q16, WPX Energy reported ~60% liquids in its production mix
WPX Energy’s production mix has shifted dramatically following the acquisition of Delaware Basin properties in the Permian Basin last year and the recent sale of its Piceance Basin subsidiary. Prior to the Piceance divestiture, natural gas volumes accounted for 70% of WPX Energy’s production mix a year ago. For more information, you can read How Is WPX Energy Strategically Transforming Itself?”.
WPX Energy’s production guidance
In June 2016, WPX has updated its fiscal 2016 production guidance. WPX attributed the increased guidance to its better-than-expected well performance and a planned increase in drilling and completion activity in the Delaware and Williston basins during 2H16.
For 2016, WPX now expects full-year production in a range of 77 Mboepd to 82 Mboepd, a midpoint increase of 2 Mboepd (or ~3%) from its previous guidance of ~78 Mboepd.
WPX Energy’s drilling and completion budget guidance
In June 2016, WPX also updated its fiscal 2016 drilling and completion budget guidance to a range of $400 million–$450 million. WPX Energy’s updated 2016 drilling and completion budget guidance range of $400 million–$450 million remains within the original guidance range of $350 million–$450 million.