TULSA, Okla.--(BUSINESS WIRE)--WPX Energy (NYSE: WPX) announced today that it is increasing its full-year oil production guidance to an average of 39 to 41 Mbbl/day, up 5 percent from previous guidance of 37 to 39 Mbbl/day.
Guidance for total equivalent production is up 3 percent to 77 to 82 Mboe/day from a previous estimate of 75 to 80 Mboe/d.
The increase is driven by better-than-expected well performance and an expected increase in drilling and completion activity in the Delaware and Williston basins during the second half of 2016.
WPX’s previously announced plan to add a third rig in the Delaware Basin is scheduled to occur in October, along with new plans to complete 15 to 20 drilled but uncompleted wells in the Williston Basin beginning in August.
Despite the planned increase in activity, the company’s updated drilling and completion budget for 2016 – $400 million to $450 million – remains within the original guidance range of $350 million to $450 million.
Additionally, WPX is initiating an expansion of its owned and operated midstream infrastructure in the Delaware Basin with the addition of a crude oil gathering system. This infrastructure supports the company’s large contiguous acreage position in the Stateline area of the basin.
WPX plans to commission the crude line in 2017. Once in service, the new infrastructure will improve oil differentials for the company’s production in the Delaware Basin. WPX’s existing infrastructure in the basin is comprised of natural gas gathering and water gathering and transfer lines.
“We are well positioned to leverage our operational momentum in ways that can accelerate and enhance the value we deliver to stockholders,” said Rick Muncrief, president and chief executive officer. “The steps we’re taking to increase activity in our world-class assets are consistent with our emphasis on remaining opportunistic.”
About WPX Energy, Inc.
WPX is an oil-focused energy company with operations in the Permian’s Delaware Basin, the Williston Basin and the San Juan Basin. The company has reshaped its holdings through more than $5 billion of transactions and posted double-digit oil volume growth in each of the past four years.
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 date of this press release, even if subsequently made available by WPX Energy on its website or otherwise. WPX Energy does not undertake and expressly disclaims any obligation to update the forward-looking statements as a result of new information, future events or otherwise. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at WPX Energy, Attn: Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s website at www.sec.gov.