WPX Energy Production Growth Poised To Accelerate

Analyst Thomas Driscoll expects WPX Energy to grow its production 6 percent next year and 25 percent in the following year. This would come on the back 20 percent annual drop in the four years ending 2016. He also thinks that the company's asset quality, as well as, the balance sheet presented much better picture than they were.

Therefore, the brokerage thinks that the shares could likely outperform subject to the company executing its plan properly. The element of doubt is there because of the risks involved in execution apart from steep decline in production rates besides maintenance capital increase, which would follow the acceleration in production.

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"We raised our 2017–2018 oil volume estimates by 17 percent and 42 percent to reflect 2017 indicated spending that is twice our previous estimate along with the expectation that spending will rise again in 2018. WPX has delivered very strong well results on its Delaware Basin acreage — and this should attract increased capital spending in 2017," Barclays told their clients in a research note.

The brokerage thinks that the company would join a growing companies list that could have the potentials to deliver strong growth rates with the help of Delaware Basin wells.

At last check, the stock traded at $12.42, down 0.08 percent.

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