WPX Energy reported a net gain of $305 million, or $0.72 per diluted share, for the second quarter of 2019.
The Tulsa-based exploration and production company posted a net loss of $85 million, or 21 cents per diluted share, for the same time period in 2018.
WPX’s second-quarter gain for this year included a $247 million gain related to WPX’s equity interest in the sale of the Oryx II pipeline project.
Excluding the Oryx gain and other items such as derivatives, WPX posted an adjusted net income of $0.09 per share.
Total production in the second quarter averaged 159.6 MBoe/d, which was 28% higher than a year ago. Oil and natural gas liquids volumes comprised 79% of total volumes. Oil sales of $511 million from 97.9 Mbbl/d accounted for 92% of second-quarter product revenues.
Cash flow from operations, inclusive of hedge impact, in the first half of 2019 was $634 million, including $362 million in the second quarter. Cash flow for the first half of 2019 was 48% higher than the same period a year ago.
WPX’s board of directors has authorized a plan for the company to repurchase up to $400 million of shares over the next 24 months.
“This accelerates our original plan to return capital to shareholders in 2021,” Rick Muncrief, WPX chairman and chief executive officer, said in a statement. “The current market sentiment has created favorable circumstances for an action like this, and if the market remains irrational, we will be opportunistic.
“Doing so will not impact our expected development cadence in 2020 or our ability to continue to grow production. We expect to generate $100 million to $150 million in free cash flow in the back half of this year, which will help support our repurchase program.”
Under the stock repurchase program, WPX may repurchase shares from time to time at management’s discretion in accordance with applicable securities laws, including through open market transactions, privately negotiated transactions or any combination thereof.
In addition, shares may also be repurchased pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, which would permit shares to be repurchased when WPX might otherwise be precluded from doing so under insider trading laws.
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