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Business, Finance, Occupation & Industry

1 Natural Gas Company to Put on Your Radar?

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By Tyler Crowe, The Motley Fool

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Several investors wrote off natural gas plays after spot prices bottomed out last year, but the subsequent rise in gas prices hasn’t seemed to change the opinion of many investors. It’s a shame, because they could be missing out on some great companies that could make big returns in the future. One company that comes to mind is WPX Energy , which just announced that its most recent well in the Piceance Basin of Colorado sported an impressive 100-day output of 1 billion cubic feet of gas. 

The implications of this gas find could mean a large uptick in the company’s reserves. With the company valued at $1.00 per thousand cubic feet equivalent of proved reserves, WPX is one of the lowest-valued gas company’s on the market. Also, even though the company has a gas-heavy portfolio, its liquid component just happens to be in one of the best tight oil plays in the U.S. — the Bakken. In this video, Fool.com contributor Tyler Crowe talks about how the low market value per proven reserve could be an opportunity to get in on a strong natural gas play that just also happens to have the same amount of proven oil reserves in the Bakken as Kodiak Oil & Gas .

With all of Kodiak’s assets in the Bakken, the company is one of the easier ways to gauge the health of the formation. To find out whether Kodiak is currently a buy or a sell, you’re invited to check out The Motley Fool’s premium research report on the company, which comes with a full year of updates and analysis as key news breaks. To get started simply click here now.

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From: http://www.dailyfinance.com/2013/04/11/1-natural-gas-company-to-put-on-your-radar/

Business, Finance, Occupation & Industry

CAPScall of the Week: WPX Energy

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By Sean Williams, The Motley Fool

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For years, satirical late-night TV host Stephen Colbert has been running a series on his show called “Better Know a District,” which highlights one of the 435 U.S. congressional districts and its representative. While I am no Stephen Colbert, I am brutally inquisitive when it comes to the 5,000-plus listed companies on the U.S. stock exchanges.

That’s why I’ve made it a weekly tradition to examine one seldom-followed company within the Motley Fool CAPS database, and make a CAPScall of outperform or underperform on that company.

For this week’s round of “Better Know a Stock,” I’m going to take a closer look at WPX Energy .

What WPX Energy does
WPX Energy is an independent oil and gas exploration and production company, with wells in the Bakken and Marcellus shales, as well as the Piceance, Powder River, and San Juan basins. It also holds a majority interest in Apco Oil & Gas, which operates out of Argentina and Colombia. WPX‘s 2012 end reserves totaled 4.65 trillion cubic feet of natural gas equivalent including its overseas assets, and claimed a mixture of about 75% gas and 25% liquids (oil and natural gas liquids). 

In the fourth quarter, WPX reported 40% growth in oil production, 3% growth in natural gas liquid production, and 2% natural gas production growth during the quarter. However, WPX still lost $1.12 for the year as the company experienced a 22% decline in realized natural gas prices, and it wrote down $225 million in non-cash impairments because of the falling price of natural gas.

Whom it competes against
WPX has a triple threat it has to contend with: its competitors, the spot price for natural gas, and the rising costs of E&P.

As you might imagine, a finite amount of land available for exploration makes finding valuable natural gas and liquid assets quite the premium. According to my Foolish colleague Tyler Crowe, 12% of WPX’s assets are oil-based, of which many lie in the oil-rich Bakken Shale. This formation is known for its high-yielding oil reserves and is led by Continental Resources and EOG Resources . One smart tactic nearly all Bakken producers are using is shipping their oil production by rail to Louisiana terminals instead of selling it at the wellhead or in Cushing, Okla., because Brent prices at shipping terminals in Louisiana are paying out significantly more. In December, the North Dakota Pipeline Authority estimated that 64% of daily production was being shipped this way, which makes for plenty of extra profits for all involved — especially WPX, which saw oil production growth of 98% in the Bakken in the fourth quarter.

Realized natural gas prices can also be a friend or a foe, depending upon how you look at things. Chesapeake Energy , for example, leaned very heavily toward natural gas production as recently as early last year. However, weak natural gas prices necessitated a shift away from nat-gas drilling and production and toward Chesapeake’s more liquid-rich assets. …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

WPX Energy's Niobrara Discovery Well Hits Production Milestone

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By Business Wirevia The Motley Fool

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WPX Energy’s Niobrara Discovery Well Hits Production Milestone

TULSA, Okla.–(BUSINESS WIRE)– WPX Energy (NYS: WPX) announced today that its Niobrara Shale discovery well in the Piceance Basin exceeded 1 billion cubic feet of natural gas production in just over 100 days of operation.

At this rate, WPX expects the Niobrara well to produce in its first four months what a typical well in the Piceance Basin‘s Williams Fork formation produces over its estimated lifecycle of 25 to 30 years.

The Niobrara well is located on WPX‘s acreage in Western Colorado, where the company has the lease rights to approximately 180,000 net acres of the Niobrara/Mancos shale play.

The discovery well initially produced 16 million cubic feet per day at a flowing pressure of 7,300 pounds per square inch. It registered an average production rate of almost 10 million cubic feet per day over its first 90 days, despite being choked back substantially.

“We’re very pleased with what we’re seeing,” said Ralph A. Hill, WPX‘s president and chief executive officer. “This well is demonstrating tremendous strength. It’s a large discovery that has significant upside potential for creating shareholder value.”

Over time, WPX believes that its Niobrara discovery has the potential to more than double the company’s proved, probable and possible (3P) reserves, which were approximately 18 trillion cubic feet at year-end 2012.

WPX started drilling its second Niobrara well on Wednesday, April 3. The company expects to begin completion activities in June.

As previously announced, WPX plans to drill a total of four horizontal Niobrara wells in 2013. The drilling plan is designed to prove up adjacent acreage and test the repeatability of the play on additional acreage the company owns.

WPX already has extensive processing and takeaway capacity under contract in the Piceance to support Niobrara production.

The Niobrara and Mancos shales are generally located at depths of 10,000 to 13,000 feet. The Williams Fork is a shallower formation, generally located at depths of 6,000 to 9,000 feet. In the Piceance Basin, WPX holds an average working interest of 66 percent in the Niobrara and Mancos shales.

About WPX Energy, Inc.

WPX Energy is an exploration and production company focused on developing its significant oil and gas reserves, particularly in the …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

WPX Energy to Host May 2 Webcast

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By Business Wirevia The Motley Fool

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WPX Energy to Host May 2 Webcast

TULSA, Okla.–(BUSINESS WIRE)– WPX Energy (NYS: WPX) plans to report its first-quarter 2013 financial and production results before the market opens on Thursday, May 2.

Management will discuss the results and provide an update on the company’s operations during a webcast starting at 10 a.m. Eastern on the same day. Participants are encouraged to access the event and the corresponding slides at www.wpxenergy.com.

A limited number of phone lines also will be available at (866) 515-2907. International callers should dial (617) 399-5121. The conference identification code for both phone numbers is 99483783.

A replay of the first-quarter webcast will be available on WPX‘s website for one year following the event. Interviews with WPX‘s management about the company’s strengths, innovations and efficiencies also are available at www.wpxenergy.com.

About WPX Energy, Inc.

WPX Energy is an exploration and production company focused on developing its significant oil and gas reserves, particularly in the liquids-rich Piceance Basin, the Bakken and Three Forks oil shales and the Marcellus Shale. WPX also has domestic operations in the San Juan and Powder River basins, as well as a 69 percent interest in Apco Oil and Gas International. Go to http://www.wpxenergy.com/investors.aspx to join our e-mail list.

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company. Statements regarding future drilling and production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas. These risks include, but are not limited to, the volatility of oil, natural gas and NGL prices; uncertainties inherent in estimating oil, natural gas and NGL reserves; drilling risks; environmental risks; and political or regulatory changes. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. The forward-looking statements in this press release are made as of the …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Dejour Contracts Patterson Drilling & Halliburton for Kokopelli Development

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By Business Wirevia The Motley Fool

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Dejour Contracts Patterson Drilling & Halliburton for

Kokopelli Development

Targeting Q2-2013 Liquids-Rich Production

DENVER–(BUSINESS WIRE)– Dejour Energy Inc. (NYSE MKT: DEJ / TSX: DEJ), an independent oil and natural gas exploration and production company operating in North America’s Piceance Basin and Peace River Arch regions, today provides an update on field operations at its 72% owned and operated Kokopelli project in Western Colorado.

The Company remains on schedule for the start-up of a new three well drilling program at Kokopelli before the end of March. Mobilization of Patterson-UTI (NAS: PTEN) Rig #313 to Dejour’s Drill Pad 21-A has begun. At the conclusion of the three well program, the Company has contracted with Halliburton (NYS: HAL) to commence completion of all four wells (including Federal Well 6-7-16-21 which was drilled in November).

Dejour is currently finalizing a gas transportation and processing agreement with a major midstream operator in the Piceance. Under the terms of the agreement, Dejour will maintain ownership of all NGL‘s recovered at the third party processing plant and sell both the NGL‘s and the residual gas at the tailgate of the plant.

“We are beginning the process of converting the Kokopelli asset from a proven undeveloped and probable reserve to a proven developed producing reserve that we expect to grow with time to over a net 120 BCF natural gas with 15 MM barrels of condensate/liquids in the Williams Fork,” says Harrison Blacker, Dejour COO.

Of significant interest to the Company are recent activities targeting the deeper Niobrara-Mancos zones in proximity to Dejour leaseholds within the Piceance Basin.

A recent announcement by WPX Energy (NYS: WPX) of a successfully completed Lower Mancos (Niobrara) Hz producer, in Garfield County, states that a new producer has averaged 12 MMCF/d of restricted flow production during the first 30 days. WPX further announced its intention to drill 2 additional Hz wells in 2013 adding that the encouraging production results of these new wells indicate that the Piceance Basin recoveries, including the Niobrara-Mancos, offer the potential to at least double the Company’s net reserves in the Piceance.

“We are also very excited about the activities of a Texas based E&P company currently testing a 4,600′ horizontal leg of …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

WPX Energy Reports 2012 Results

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By Business Wirevia The Motley Fool

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WPX Energy Reports 2012 Results

TULSA, Okla.–(BUSINESS WIRE)– WPX Energy (NYS: WPX) today announced its unaudited operating and financial results for the fourth quarter and the year ended Dec. 31, 2012. Highlights for full-year 2012 include:

  • 98% growth in Bakken oil production
  • 40% growth in overall oil production
  • 3% growth in overall NGL production
  • 2% growth in overall natural gas production
  • 634 Bcfe of domestic reserves additions

CEO PERSPECTIVE

“Our focused growth plan and rate-of-return driven strategy is delivering strong results. Production is up, Bakken well costs are down and continue to improve, and new opportunities like our Niobrara discovery are providing upside potential and future visibility for value creation at WPX,” said Ralph Hill, president and CEO.

“For 2012, we maintained the strength of our balance sheet in the face of lower natural gas prices and exceeded our production goal even with ongoing pipeline bottlenecks in the Marcellus.

“For 2013, our diversified portfolio of reserves gives us the opportunity to continue to grow our Bakken production and devote the majority of our capital to oil and liquids resource plays,” Hill said.

“We’re also committed to continuously improving the cost structure in each of our basins and gaining new efficiencies as we apply our large-scale development expertise.

“Specifically, reduced drilling times positively impact our internal rates of return. Our record drilling times are 3.7 days in the Piceance Valley, 10.8 days in the Marcellus and 25 days in the Bakken.

“Piceance wells originally took 30 days to drill. A decade ago they took 20. We’ve since reduced that by another 60 percent down to an average of 8 days for our Valley wells. This is an example of the efficiencies we can deliver in our other major operating areas,” Hill added.

FULL-YEAR 2012 FINANCIAL RESULTS

WPX reported an unaudited net loss attributable to WPX Energy of $223 million for full-year 2012, or a loss of …read more
Source: FULL ARTICLE at DailyFinance