WPX Energy Provides Update on 2013 Results; Will Take up to $1.4B in Pre-Tax Charges

WPX Energy WPX announced today 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. 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 percent in the fourth quarter and 34 percent overall during 2013. NYMEX pricing also declined 18 percent throughout 2013. This necessitated a review and subsequent write down of the carrying value of certain proved and unproved natural gas properties. These charges also include impairments of the costs of acquired unproved reserves, unproved leasehold and an equity method investment. Approximately $1.1 billion of the estimated charges relates to Appalachian properties, with the remaining majority of the balance attributable to Powder River properties. The impairment relating to unproved leasehold will be reported as a component of exploration expense. Management will discuss WPX's 2013 results during a webcast on Feb. 27 starting at 10 a.m. Eastern. Participants are encouraged to access the event and the corresponding slides at www.wpxenergy.com. About WPX Energy, Inc. WPX Energy is an independent exploration and production company formed during a spinoff two years ago. Overall, WPX has more than 30 years of experience in its sector, with nearly 40 local, state and federal awards for efficiency, innovation and corporate social responsibility.