WPX sustains quarterly loss despite oil production growth
BY ROD WALTON World Staff Writer
Thursday, November 01, 2012
WPX Energy Inc. reported Thursday that it suffered a $64 million net loss for the third quarter, but the Tulsa-based producer upped its oil portfolio significantly in the Bakken Shale of North Dakota.
The spinoff of Williams Cos. Inc. has been trying to reverse its natural gas-heavy production mix for most of this year. Lower natural gas and natural gas liquids prices, however, helped to drive down revenues for the three months ending Sept. 30.
The $64 million net loss compared with $14 million in profits same period last year. WPX Energy has a $117 million net loss for the nine months of 2012 so far.
The Bakken Shale oil drilling efforts are growing, up to 9,600 barrels per day in the third quarter compared with 5,800 bpd a year ago, WPX reported. Natural gas production in the Marcellus Shale of the eastern U.S. expanded 333 percent to 65 million cubic feet per day.
And WPX CEO Ralph Hill noted that natural gas prices have risen lately, which will benefit the company’s projects in the Marcellus and the Piceance Basin of Colorado.
“Overall, lower commodity prices in 2012 have been a challenge, but we’ve maintained our strong and stable financial condition,” Hill said in a statement. “We’re bullish on our large resource base and we’re on target to meet our 2012 production goal of 1,380 million cubic feet equivalent per day.”
Hill added the Bakken Shale oil production increased again to 10,500 bpd by October.