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.

Snowflake

Fundamentals

Fair value with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

WPX

1.0%

US Oil and Gas

0.07%

US Market


1 Year Return

-39.6%

WPX

-16.7%

US Oil and Gas

8.9%

US Market

Return vs Industry: WPX underperformed the US Oil and Gas industry which returned -16.7% over the past year.

Return vs Market: WPX underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

WPXIndustryMarket
7 Day-0.3%1.0%0.07%
30 Day-10.6%-4.3%-0.3%
90 Day-4.3%-7.3%-1.6%
1 Year-39.6%-39.6%-13.5%-16.7%11.3%8.9%
3 Year-13.6%-13.6%-5.8%-14.4%46.3%36.8%
5 Year-48.9%-48.9%-23.1%-34.1%62.1%44.3%

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?

6.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WPX ($9.8) is trading above our estimate of fair value ($0.04)

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 (6.8x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: WPX is good value based on its PE Ratio (6.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: WPX is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: WPX is overvalued based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is WPX Energy forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPX's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).

Earnings vs Market: WPX's earnings (7.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: WPX's revenue (10.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WPX's revenue (10.8% 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 (1.8%).


Next Steps

Past Performance

How has WPX Energy performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WPX has become profitable over the past 5 years, growing earnings by 29.5% 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 (20.6%).


Return on Equity

High ROE: WPX's Return on Equity (13.2%) is considered low.


Return on Assets

ROA vs Industry: WPX has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: WPX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is WPX Energy's financial position?


Financial Position Analysis

Short Term Liabilities: WPX's short term assets ($774.0M) do not cover its short term liabilities ($1.0B)

Long Term Liabilities: WPX's short term assets (774.0M) do not cover its long term liabilities (3.0B)


Debt to Equity History and Analysis

Debt Level: WPX's debt to equity ratio (47.3%) is considered high

Reducing Debt: WPX's debt to equity ratio has increased from 43.7% to 47.3% over the past 5 years.

Debt Coverage: WPX's debt is well covered by operating cash flow (50.5%).

Interest Coverage: WPX's interest payments on its debt are well covered by EBIT (3.7x 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?

0.047%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years0.05%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

5.2yrs

Average management tenure


CEO

Rick Muncrief (60yo)

5.4yrs

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 ($USD11.33M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

5.2yrs

Average Tenure

48yo

Average Age

Experienced Management: WPX's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

7.8yrs

Average Tenure

64yo

Average Age

Experienced Board: WPX's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$64618 Jan 19
Clay Gaspar
EntityIndividual
Role
President
President & COO
Shares50
Max PriceUS$12.92
SellUS$1609 Nov 18
William Lowrie
EntityIndividual
Shares1
Max PriceUS$16.06

Ownership Breakdown


Management Team

  • Bryan Guderian (60yo)

    Executive Vice President of Business Development

    • Tenure: 3.4yrs
    • Compensation: US$3.23m
  • Stephen Brilz

    VP & Corporate Secretary

    • Tenure: 0yrs
  • Rick Muncrief (60yo)

    CEO & Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: US$11.33m
  • J. Vann (48yo)

    Executive VP & CFO

    • Tenure: 5.6yrs
    • Compensation: US$4.01m
  • Clay Gaspar (47yo)

    President & COO

    • Tenure: 1.8yrs
    • Compensation: US$5.39m
  • Dennis Cameron (56yo)

    Executive VP & General Counsel

    • Tenure: 5.8yrs
    • Compensation: US$2.13m
  • Larry Faulkner (47yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 4.9yrs
  • Angela Kouplen (45yo)

    Senior VP of Administration & CIO

    • Tenure: 3.8yrs
  • David Sullivan

    Manager of Investor Relations

    • Tenure: 7.8yrs
  • Greg Horne

    Vice President of Midstream & Marketing

    • Tenure: 0yrs

Board Members

  • Jack Lentz (74yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$285.00k
  • John Carrig (67yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$270.00k
  • David Work (73yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$270.00k
  • Kelt Kindick (64yo)

    Lead Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$290.00k
  • Kim Lubel (54yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$270.00k
  • Karl Kurz (57yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$270.00k
  • Robert Herdman (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$279.40k
  • Rick Muncrief (60yo)

    CEO & Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: US$11.33m
  • Valerie Williams (62yo)

    Independent Director

    • Tenure: 1.6yrs
    • 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$4.139b
  • Shares outstanding: 422.40m
  • 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:19
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.