WPX Energy (WPX) Gets a Buy Rating from Northland Securities

By Ryan Adsit

In a report issued on February 21, Jeff Grampp from Northland Securities maintained a Buy rating on WPX Energy (WPXResearch Report), with a price target of $20. The company’s shares opened today at $12.43.

Grampp commented:

“We look for more color on the 2021 Vision on its earnings call and reiterate OP and $20 PT. Miss: WPX reported 4Q18 Adjusted EBITDAX of $306MM, below consensus of $316MM and our estimate of $319MM due to higher operating costs and lower realized prices, partly offset by higher production. $44MM was higher than our estimate of $30MM and unit LOE of $6.25/BOE was higher than our estimate of $5.35/BOE. Production of 156 MBOEPD (61% oil) was above consensus of 148 MBOEPD and our estimate of 145 MBOEPD (63% oil) and realized prices of $36.41/BOE were less than our estimate of $38.24/BOE 4Q18 The company reported 4Q18 CapEx of $436MM, well above consensus of $343MM and our estimate of $350MM. With spending levels such a focus for investors, we expect the higher CapEx to catch extra scrutiny.”

According to TipRanks.com, Grampp ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -11.7% and a 30.5% success rate. Grampp covers the Basic Materials sector, focusing on stocks such as Penn Virginia Corporation, Goodrich Petroleum Corp, and Resolute Energy Corp.

Currently, the analyst consensus on WPX Energy is a Strong Buy with an average price target of $18.60, which is a 49.6% upside from current levels. In a report issued on February 7, Cowen & Co. also maintained a Buy rating on the stock with a $19 price target.

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Based on WPX Energy’s latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $1.47 billion and net profit of $354 million. In comparison, last year the company earned revenue of $448 million and had a GAAP net loss of $38 million.

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WPX Energy, Inc. engages in the development and exploration of oil, natural gas liquid, and gas properties. Its basin portfolio includes Delaware, Williston and San Juan. The company was founded on April 19, 2011 and is headquartered in Tulsa, OK.