|Bid||0.00 x 800|
|Ask||0.00 x 21500|
|Day's Range||18.34 - 19.08|
|52 Week Range||9.90 - 20.80|
|Beta (3Y Monthly)||2.86|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 31, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||26.31|
Crude oil has been very volatile recently. WTI reached a new four-year high of $76.40 per barrel on October 3, amid supply concerns due to looming Iran sanctions. It then retreated on reports of a possible increase in supplies from Saudi Arabia and Russia to compensate for the loss of Iranian supplies. This retreat was followed by another major sell-off, with US crude falling below $71 per barrel on October 11 due to global markets correcting amid concerns over lower global growth and higher US Treasury yields.
WPX Energy (WPX) plans to discuss its third-quarter 2018 financial and operations results during a webcast on Thursday, Nov. 1, 2018, beginning at 10 a.m. Eastern. Chief Executive Officer Rick Muncrief, Chief Operating Officer Clay Gaspar and Chief Financial Officer Kevin Vann will discuss the company’s performance. WPX is an independent energy producer with core positions in the Permian and Williston basins.
Oil stocks Continental Resources joined ExxonMobil, Cactus, WPX Energy in buy range as crude futures hit 4-year highs. Diamondback Energy, Marathon Petroleum tested buy points.
The WTI Cushing-WTI Midland spread is a key indicator to watch for Permian producers. The spread continued to fall in the week ending September 21. The spread fell to $11.5 per barrel by the end of last week—compared to the highs of $17.8 per barrel in the week ending August 31. However, the current spread is still high compared to the previous month’s low of $12.0 per barrel and the one-year average of $5.5 per barrel.
The weakness in crude oil prices by the end of last week and a slight decline in Permian drilling activity could be the major reasons behind the narrowing of the WTI Cushing-WTI Midland spread. The announcement by Energy Transfer Partners (ETP) to proceed with its plans to construct the PGC (Permian Gulf Coast) pipeline could be another major reason behind the recent fall in the WTI spreads. The PGC pipeline and a few other major pipeline projects are expected to reduce the pipeline constraint in the region in the next two years.
The WTI Cushing-WTI Midland spread, a key indicator for Permian producers, saw a steep contraction last week. The spread fell to $14.6 per barrel by the end of the week compared to highs of $17.8 per barrel in the week ending August 31. However, the current spread is still high compared to the previous month’s low of $12 per barrel and the one-year average of $5.0 per barrel.
So far in this series, we’ve looked at the top four upstream companies based on analysts’ ratings. Those companies are Viper Energy Partners (VNOM), Earthstone Energy (ESTE), Ring Energy (REI), and WPX Energy (WPX). In this part of the series, we’ll look at Diamondback Energy (FANG), which is in fifth place in terms of analyst ratings.
WPX Energy (WPX), a Permian- and Williston-focused E&P (exploration and production) company, is in fourth place in terms of analysts’ ratings among upstream companies. WPX Energy saw several target price upgrades following its second-quarter earnings announcement. The increase in 2018 production guidance could be one factor behind the upward revision in its target price.
Which Upstream Companies Do Wall Street Analysts Like the Most? Ring Energy (REI), a pure play Permian-focused E&P (exploration and production) company, is in third place among upstream companies in terms of analysts’ ratings. REI is currently trading below the low range ($14) of analysts’ target price.
Upstream companies have been very volatile in recent weeks. That’s due to strong volatility in crude oil and natural gas prices. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which includes 56 exploration and production companies, saw a three-month low of $38.80 in August. It recovered significantly by the end of that month. However, most of the gains were eroded in the recent fall.
On September 6, US crude oil’s implied volatility was 24%, which is ~3.9% above its 15-day average. The inverse relationship between oil prices and oil’s implied volatility is illustrated in the following graph. Since reaching a 12-year low in February 2016, US crude oil active futures have risen 158.6%. Crude oil’s implied volatility has fallen ~68.1% since February 11, 2016.
Drillers across West Texas and New Mexico have been flaring excess natural gas output at high rates due to a lack of takeaway capacity
WPX (WPX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
On August 22–29, our list of oil-weighted stocks rose 2.4%—at par to US crude oil October futures’ rise. On average, our list of oil-weighted stocks performed the same as US crude oil prices.
Oil prices and the inventories spread usually move inversely, as you can see in the above chart. If the inventories spread keeps contracting and falls into the negative territory, it could support oil prices in the coming weeks. The rise in oil prices might be behind the rise in these equity indexes.
Moody's Investors Service ("Moody's") assigned first-time ratings to EIF Van Hook Equity Holdings, LLC (Van Hook), including a B3 Corporate Family Rating (CFR), a B3-PD Probability of Default Rating (PDR), and a B3 rating to its proposed $400 million senior secured term loan. The rating outlook is stable.
WPX Energy (WPX) sees solid earnings estimate revisions and looks poised to shock the market, and yet seems overlooked by the investors.
On August 13, US crude oil September futures closed ~$3.97 above the September 2019 futures contract. On August 6, the futures spread was at a premium of ~$5.02. On August 6–13, US crude oil September futures fell 2.6%.
On August 3–10, the United States Oil ETF (USO) fell 1.3%, the United States 12-Month Oil ETF (USL) fell 0.5%, and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) fell 2.8%. These ETFs track US crude oil futures.
On August 9, US crude oil’s implied volatility was 23.1%, which was ~1.3% below its 15-day average. The inverse relationship between oil prices and oil’s implied volatility is illustrated in the graph below.
Geopolitical concerns from Iran to Venezuela, along with worries over supply output and oil delivery disruptions, have led many investment experts to forecast higher oil prices. W&T Offshore ( WTI) and WPX Energy ( WPX) recently pulled back to key levels on the charts, suggesting it may be time to buy the dip. Both energy stocks could be ready to rally, if history is any indicator.
On August 8, US crude oil September futures fell 3.2% and closed at $66.94 per barrel—the lowest closing level for active US crude oil futures since June 21. Rising trade disputes between the US and China could be behind the fall in oil prices. In the last trading session, the S&P 500 Index was unchanged, while the Dow Jones Industrial Average Index fell 0.2%.