WPX Energy Q4, FY13 To Include Up To $1.4 Bln In Pre-tax Impairment Charges

(RTTNews) - WPX Energy iNC. (WPX) said Monday that its 2013 fourth quarter and full year financial results will include the impact of up to $1.4 billion in pre-tax impairment charges. About $1.1 billion of the estimated charges relates to Appalachian properties, with the remaining majority of the balance attributable to Powder River properties.

The non-cash charges are a result of a decline in forward market natural gas prices particularly in the Northeast, where Appalachia pricing declined 26% in the fourth quarter and 34% overall during 2013,.thecompany said. NYMEX pricing also declined 18% throughout 2013.

WPX Energy also announced a 2014 capital plan of $1.47 billion), with approximately 85% of spending allocated to Williston, Piceance and San Juan Gallup development. The 2014 plan represents a 20% capital increase vs. 2013 spending.

WPX is forecasting total production on an equivalent basis of 1,246 MMcfe/d to 1,259 MMcfe/d for full-year 2014, with a December exit rate that represents a 5 percent increase over the 2013 exit rate.

While total production levels for 2014 are expected to remain flat compared to total 2013 production levels, domestic oil volumes are expected to increase nearly 40%, the company said.