WPX Is in Fourth Place in Terms of Cash Flow Growth Expectations

Cash flow from operations growth

WPX Energy (WPX), a Permian- and Williston-focused exploration and production company, is in fourth place in terms of cash flow growth expectations. The company is expected to post 216.6% YoY (year-over-year) cash flow from operations growth in the third quarter compared to the same quarter last year.

This growth is expected to be driven by strong production growth and higher average realized sale prices. Unlike Centennial Resource Development (CDEV), WPX is not expected see any negative impact from increased price differentials.

WPX Is in Fourth Place in Terms of Cash Flow Growth Expectations

According to Richard Muncrief, WPX’s CEO, “We’re reaping some of the best basis differentials in the Permian Basin among our peers. We expect this to continue over the next couple of years, which is an outcome of our pro-active midstream and marketing strategy.”

For 2018, analysts expect the partnership to post cash flow from operations growth of 91.9%. Its cash flow from operations growth is expected to be 58.9% in 2019 and 26.7% in 2020. For details on WPX’s valuation and analysts’ recommendations, read WPX Energy Is ~83% Higher than Its 52-Week Low: What Lies Ahead?

In the next article, we’ll look at cash flow growth expectations for ConocoPhillips (COP) in the third quarter.