NYSE:WPX

Stock Analysis Report

Executive Summary

WPX Energy, Inc., an independent oil and natural gas exploration and production company, engages in the exploitation and development of unconventional properties in the United States.

Rewards

PE ratio (7.5x) is below the US market (18.9x)

Earnings are forecast to grow 11.55% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with mediocre balance sheet.


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Share Price & News

How has WPX Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WPX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

WPX

-1.3%

US Oil and Gas

1.2%

US Market


1 Year Return

3.3%

WPX

-6.8%

US Oil and Gas

24.2%

US Market

Return vs Industry: WPX exceeded the US Oil and Gas industry which returned -4.2% over the past year.

Return vs Market: WPX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

WPXIndustryMarket
7 Day-2.4%-1.3%1.2%
30 Day-4.7%-0.7%3.5%
90 Day27.9%3.0%11.7%
1 Year3.3%3.3%-3.3%-6.8%26.9%24.2%
3 Year-7.2%-7.2%-7.9%-16.4%53.0%43.2%
5 Year10.2%10.2%-12.8%-25.4%75.3%56.0%

Price Volatility Vs. Market

How volatile is WPX Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WPX Energy undervalued compared to its fair value and its price relative to the market?

7.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WPX ($12.98) is trading above our estimate of fair value ($2.77)

Significantly Below Fair Value: WPX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WPX is good value based on its PE Ratio (7.5x) compared to the Oil and Gas industry average (10.2x).

PE vs Market: WPX is good value based on its PE Ratio (7.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WPX is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: WPX is overvalued based on its PB Ratio (1.2x) compared to the US Oil and Gas industry average (1x).


Next Steps

Future Growth

How is WPX Energy forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPX's forecast earnings growth (11.5% per year) is above the savings rate (1.7%).

Earnings vs Market: WPX's earnings (11.5% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: WPX's earnings are forecast to grow, but not significantly.

Revenue vs Market: WPX's revenue (19.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: WPX's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPX's Return on Equity is forecast to be low in 3 years time (5.6%).


Next Steps

Past Performance

How has WPX Energy performed over the past 5 years?

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPX has a large one-off gain of $316.0M impacting its September 30 2019 financial results.

Growing Profit Margin: WPX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WPX has become profitable over the past 5 years, growing earnings by 27.9% per year.

Accelerating Growth: WPX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WPX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: WPX's Return on Equity (15.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is WPX Energy's financial position?


Financial Position Analysis

Short Term Liabilities: WPX's short term assets ($816.0M) do not cover its short term liabilities ($930.0M).

Long Term Liabilities: WPX's short term assets ($816.0M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: WPX's debt to equity ratio (47.4%) is considered high.

Reducing Debt: WPX's debt to equity ratio has reduced from 48.9% to 47.4% over the past 5 years.

Debt Coverage: WPX's debt is well covered by operating cash flow (51.7%).

Interest Coverage: WPX's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: WPX has a high level of physical assets or inventory.

Debt Coverage by Assets: WPX's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is WPX Energy's current dividend yield, its reliability and sustainability?

0.40%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.1%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WPX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WPX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WPX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WPX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WPX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of WPX Energy's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Rick Muncrief (60yo)

5.7yrs

Tenure

US$11,325,367

Compensation

Mr. Richard E. Muncrief, also known as Rick, has been the Chief Executive Officer of WPX Energy, Inc. since May 15, 2014 and served as its President. Mr. Muncrief served as Senior Vice President of Operati ...


CEO Compensation Analysis

Compensation vs Market: Rick's total compensation ($USD11.33M) is above average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Rick's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.4yrs

Average Tenure

48yo

Average Age

Experienced Management: WPX's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

63yo

Average Age

Experienced Board: WPX's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: WPX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$113,10016 Dec 19
Karl Kurz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$11.31

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.6%.


Management Team

  • Bryan Guderian (60yo)

    Executive Vice President of Business Development

    • Tenure: 3.7yrs
    • Compensation: US$3.23m
  • Rick Muncrief (60yo)

    CEO & Chairman of the Board

    • Tenure: 5.7yrs
    • Compensation: US$11.33m
  • J. Vann (48yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$4.01m
  • Clay Gaspar (47yo)

    President

    • Tenure: 0.2yrs
    • Compensation: US$5.39m
  • Dennis Cameron (56yo)

    Executive VP & General Counsel

    • Tenure: 6.1yrs
    • Compensation: US$2.13m
  • Larry Faulkner (47yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 5.2yrs
  • Angela Kouplen (45yo)

    Senior VP of Administration & CIO

    • Tenure: 4yrs
  • David Sullivan

    Director of Investor Relations

    • Tenure: 8yrs
  • Greg Horne

    Vice President of Midstream & Marketing

    • Todd Scruggs

      Vice President of Corporate Development


      Board Members

      • Jack Lentz (74yo)

        Independent Director

        • Tenure: 8.1yrs
        • Compensation: US$285.00k
      • John Carrig (67yo)

        Independent Director

        • Tenure: 8.1yrs
        • Compensation: US$270.00k
      • David Work (73yo)

        Independent Director

        • Tenure: 8.1yrs
        • Compensation: US$270.00k
      • Kelt Kindick (64yo)

        Lead Independent Director

        • Tenure: 1.7yrs
        • Compensation: US$290.00k
      • Kim Lubel (54yo)

        Independent Director

        • Tenure: 8.1yrs
        • Compensation: US$270.00k
      • Karl Kurz (57yo)

        Independent Director

        • Tenure: 6yrs
        • Compensation: US$270.00k
      • Robert Herdman (70yo)

        Independent Director

        • Tenure: 8.1yrs
        • Compensation: US$279.40k
      • Rick Muncrief (60yo)

        CEO & Chairman of the Board

        • Tenure: 5.7yrs
        • Compensation: US$11.33m
      • Clay Gaspar (47yo)

        President

        • Tenure: 0.2yrs
        • Compensation: US$5.39m
      • Valerie Williams (62yo)

        Independent Director

        • Tenure: 1.8yrs
        • Compensation: US$290.00k

      Company Information

      WPX Energy, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: WPX Energy, Inc.
      • Ticker: WPX
      • Exchange: NYSE
      • Founded: 1983
      • Industry: Oil and Gas Exploration and Production
      • Sector: Energy
      • Market Cap: US$5.280b
      • Shares outstanding: 416.74m
      • Website: https://www.wpxenergy.com

      Number of Employees


      Location

      • WPX Energy, Inc.
      • 3500 One Williams Center
      • Tulsa
      • Oklahoma
      • 74172
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      WPXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2011
      WPEDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2011

      Biography

      WPX Energy, Inc., an independent oil and natural gas exploration and production company, engages in the exploitation and development of unconventional properties in the United States. The company operates 657 wells and owns interests in 808 wells covering an area of approximately 130,000 net acres located in Delaware Basin, Texas and New Mexico; and operates 323 wells and owns interests in 87 wells that covers an area of approximately 85,087 net acres situated in the Williston Basin, North Dakota. As of December 31, 2018, it had proved reserves of 479.3 million barrels of oil equivalent. The company was founded in 1983 and is headquartered in Tulsa, Oklahoma. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 00:44
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.