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 Analysis

Fair value with acceptable track record.


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

Stable Share Price: WPX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.3%

WPX

4.2%

US Oil and Gas

5.3%

US Market


1 Year Return

-76.3%

WPX

-56.1%

US Oil and Gas

-10.7%

US Market

Return vs Industry: WPX underperformed the US Oil and Gas industry which returned -56.1% over the past year.

Return vs Market: WPX underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

WPXIndustryMarket
7 Day-7.3%4.2%5.3%
30 Day-66.4%-35.5%-13.6%
90 Day-77.8%-51.4%-19.8%
1 Year-76.3%-76.3%-54.3%-56.1%-8.9%-10.7%
3 Year-76.9%-76.9%-51.6%-56.3%15.5%8.0%
5 Year-75.2%-75.2%-54.7%-61.7%35.2%20.4%

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?

4.97x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WPX ($3.05) is trading above our estimate of fair value ($0.98)

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 (5x) compared to the Oil and Gas industry average (6.9x).

PE vs Market: WPX is good value based on its PE Ratio (5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: WPX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WPX is good value based on its PB Ratio (0.3x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

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

-50.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WPX's earnings are forecast to decline over the next 3 years (-50.9% per year).

Earnings vs Market: WPX's earnings are forecast to decline over the next 3 years (-50.9% per year).

High Growth Earnings: WPX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WPX's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: WPX's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WPX is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has WPX Energy performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPX has a large one-off gain of $311.0M impacting its December 31 2019 financial results.

Growing Profit Margin: WPX's current net profit margins (10.6%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: WPX has become profitable over the past 5 years, growing earnings by 18.6% per year.

Accelerating Growth: WPX's earnings growth over the past year (10.3%) is below its 5-year average (18.6% per year).

Earnings vs Industry: WPX earnings growth over the past year (10.3%) exceeded the Oil and Gas industry -11.4%.


Return on Equity

High ROE: WPX's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is WPX Energy's financial position?


Financial Position Analysis

Short Term Liabilities: WPX's short term assets ($647.0M) do not cover its short term liabilities ($898.0M).

Long Term Liabilities: WPX's short term assets ($647.0M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: WPX's debt to equity ratio (48.8%) is considered high.

Reducing Debt: WPX's debt to equity ratio has reduced from 51% to 48.8% over the past 5 years.


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 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WPX is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: WPX is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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

2.46%

Forecast Dividend Yield


Dividend Yield vs Market

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

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Rick Muncrief (60yo)

5.92s

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 ($USD11.33M) is above average for companies of similar size in the US market ($USD4.61M).

Compensation vs Earnings: Rick's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Richard Muncrief
CEO & Chairman of the Board5.92yrsUS$11.33m0.39% $6.9m
Clay Gaspar
President0.42yrUS$5.39m0.17% $2.9m
J. Vann
Executive VP & CFO6.08yrsUS$4.01m0.11% $1.9m
Dennis Cameron
Executive VP & General Counsel6.33yrsUS$2.13m0.060% $1.0m
Bryan Guderian
Executive Vice President of Business Development3.92yrsUS$3.23m0.083% $1.4m
Stephen Faulkner
VP, Controller & Principal Accounting Officer5.42yrsno data0.013% $220.5k
Angela Kouplen
Senior VP of Administration & CIO4.25yrsno data0.020% $340.2k
David Sullivan
Director of Investor Relations8.25yrsno datano data
Greg Horne
Vice President of Midstream & Marketingno datano datano data
Todd Scruggs
Vice President of Corporate Developmentno datano datano data

5.7yrs

Average Tenure

48yo

Average Age

Experienced Management: WPX's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Muncrief
CEO & Chairman of the Board5.92yrsUS$11.33m0.39% $6.9m
Clay Gaspar
President0.42yrUS$5.39m0.17% $2.9m
Henry Lentz
Independent Director8.33yrsUS$285.00k0.021% $364.9k
John Carrig
Independent Director8.33yrsUS$270.00k0.015% $252.5k
David Work
Independent Director8.33yrsUS$270.00k0.0093% $161.4k
Kelt Kindick
Lead Independent Director1.92yrsUS$290.00k0.025% $442.2k
Kimberly Lubel
Independent Director8.33yrsUS$270.00k0.021% $364.7k
Karl Kurz
Independent Director6.25yrsUS$270.00k0.014% $242.1k
Robert Herdman
Independent Director8.33yrsUS$279.40k0.0093% $161.1k
Valerie Williams
Independent Director2.08yrsUS$290.00k0.0028% $48.0k

7.3yrs

Average Tenure

63yo

Average Age

Experienced Board: WPX's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

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$1.738b
  • Shares outstanding: 569.73m
  • Website: https://www.wpxenergy.com

Number of Employees


Location

  • WPX Energy, Inc.
  • 3500 One Williams Center
  • Tulsa
  • Oklahoma
  • 74172-0172
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WPXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2011
WPEDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2011
WPEBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 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. It produces oil, natural gas, and natural gas liquids. The company operates 688 wells and owns interests in 787 wells covering an area of approximately 122,000 net acres located in Delaware Basin, Texas, and New Mexico; and operates 404 wells and owns interests in 104 wells that covers an area of approximately 87,000 net acres situated in the Williston Basin, North Dakota. As of December 31, 2019, it had proved reserves of 528 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 Analysis2020/04/01 09:55
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.