WPX Energy Cuts 2015 Capital Plan

(RTTNews) - WPX Energy (WPX) announced a 2015 capital investment plan of approximately $725 million, which is roughly half the amount of its capital plan last year, excluding acquisition capital.

As part of its long-term strategy, WPX will continue to diversify its historically gas-weighted portfolio. WPX's oil production grew 56 percent in 2014 year over year, far exceeding its plan for 40 percent growth last year.

In fourth-quarter 2014, oil volumes rose 6,500 barrels per day to approximately 32,300 barrels per day, accounting for nearly 20 percent of the company's equivalent production. This marked a 25 percent sequential-quarter increase over third-quarter 2014 oil production of 25,800 barrels per day.

WPX expects its oil production to climb again in 2015. The company is targeting 15 to 20 percent oil growth this year even as it decreases capital spending and builds an inventory of wells awaiting completion for when commodity prices are more favorable.

WPX has hedged approximately three-fourths of its anticipated 2015 natural gas production at a weighted average price of $4.10 per MMbtu and approximately two-thirds of expected oil production this year at an average price of $94.88 per barrel.

The company's 2015 capital program includes $275 million to $300 million for San Juan Basin development, $200 million to $225 million for Williston Basin activity, $200 million to $225 million for Piceance Basin development and $25 million for land and exploration.