WPX Energy (WPX)

[56Chevy]

Why? Multiple reasons...and it's the same for all E&P companies not just WPX. 1) price of crude since late 2014 has been seriously throttled back. 2) some investors expected WPX's capex spending to be pulled back a bit In the second half of 2019 but the company said it's full speed ahead on spending 3) some of their leases are in New Mexico and North Dakota. The Permian extends into New Mexico but NM has a new Governor (democrat) and she hates O & G and is doing everything possible to shut the industry down in that state. North Dakota is a much more oil friendly state but the Bakken wells are deeper and the costs to get it out of the ground are much higher and then the oil has to be shipped by rail to south Texas refineries 4) the Permian Basin has choke points due to insufficient pipeline capacity to the refineries down south. New pipelines are coming on-line soon that will relieve that situation but until then Permian producers have to sell oil at a discount. 5) Its mid-August and the summer driving season is on the downhill side of the demand. I'm seeing the price of gas go much lower in my area.

I say all this not to discourage an investment in WPX because I do like their share buy-back plans over the coming months. Maybe WPX is on sale at the current pps..and if you think it is then go for it.

Best of luck,
Chevy

Marker:
WPX Energy Inc (WPX)
$10.19 down -0.09 (-0.88%)
Volume: 8,515,831

*The current price of wti crude oil is $58.48 @ bbl.