WPX Energy Announces First-Quarter 2013 Results

  WPX Energy Announces First-Quarter 2013 Results

Business Wire

TULSA, Okla. -- May 02, 2013

WPX Energy (NYSE:WPX) today announced its unaudited operating and financial
results for the first-quarter of 2013. Recent highlights include:

  *Niobrara discovery well has exceeded 1 billion cubic feet of production
  *50% growth in Williston Basin oil production
  *39% growth in domestic oil and condensate revenues
  *40% growth in Appalachian Basin natural gas production
  *Reaffirms 2013 production guidance

CEO PERSPECTIVE

“We’re actively executing our 2013 plan to grow oil production, drive cost
improvements, remain ready for accelerated natural gas drilling if the price
recovery continues, and to build the body of data on our Niobrara gas
discovery that has the potential to more than double our 3P reserves,” said
Ralph A. Hill, WPX’s president and chief executive officer.

“Our Niobrara discovery well in the Piceance Basin is on track to produce in
its first four to five months what one of our typical Williams Fork wells in
the Piceance does in 25 to 30 years. We are drilling our second horizontal
well in the Niobrara, with three more expected this year.

“On the gas front, we’re encouraged by the stronger prices that started late
in the quarter. WPX is ideally suited to capitalize on gas if the improved
pricing is sustained. We have the track record, properties, permits,
infrastructure and access to rigs to ramp up quickly, especially in the
Piceance,” Hill added.

“Our first quarter financial and operations results are in line with the
guidance we provided for 2013. Domestic oil production is up. Appalachian
production is incrementally higher and poised to keep growing with the
infrastructure progress that’s finally beginning.

“We’re also creating value through cost savings. Multi-well pad drilling is
lowering our Williston Basin costs by 10 to 20 percent. And we’re seeing the
benefit of our new Willow Creek contract. That resulted in nearly $11 million
of savings on Piceance gathering and processing expenses in the first quarter.

“WPX’s story is one of strength. We have 10,000 remaining undrilled 3P
locations in our Piceance cornerstone asset and 4.5 trillion cubic feet
equivalent of domestic proved reserves as reported at year-end. With increased
natural gas prices, we think a more representative measure of our portfolio is
our alternate reserves scenario showing 5.3 trillion cubic feet of domestic
proved reserves, calculated using 2011 pricing featuring $3.68 natural gas
which is below current prices,” Hill said.

FIRST-QUARTER FINANCIAL RESULTS

WPX reported an unaudited net loss from continuing operations attributable to
WPX Energy of $116 million for first-quarter 2013, or a loss of $0.58 per
share on a fully diluted basis, compared with a net loss of $41 million, or a
loss of $0.21 per share, in the same period a year ago.

Excluding unrealized mark-to-market gains (losses), WPX had an adjusted loss
from continuing operations of $51 million, or a loss of $0.25 per share on a
diluted basis, for first-quarter 2013, compared with an adjusted loss from
continuing operations of $7 million, or $0.04 per share, for the same period
in 2012. The 2012 period excludes a $52 million impairment. A reconciliation
accompanies this press release.

Consolidated oil revenues increased 31 percent quarter over quarter, but
natural gas revenues declined 25 percent and natural gas liquids (NGL)
revenues declined 42 percent.

The domestic net realized average price for natural gas, inclusive of hedges,
was $2.90 per Mcf in first-quarter 2013, down 17 percent from $3.48 per Mcf a
year ago.

The net realized average price for domestic oil was $89.77 per barrel in
first-quarter 2013, an increase of 6 percent from $84.54 per barrel a year
ago. The 2012 period is inclusive of hedges.

The domestic net realized average price for NGL was $28.21 per barrel in
first-quarter 2013, down 16 percent from $33.46 per barrel a year ago.

ADJUSTED EBITDAX

WPX’s adjusted EBITDAX (a non-GAAP measure) for first-quarter 2013 was $203
million, compared with $263 million for the same measure a year ago.

The primary factors contributing to the quarter-over-quarter decrease in
adjusted EBITDAX were lower domestic net realized average prices, inclusive of
hedges, and lower volumes for both natural gas and NGL.

                                           
EBITDAX (non-GAAP)                             First Quarter
                                               2013        2012
                                               millions       millions
Net income (loss)                              ($113  )       ($40  )
Interest expense                               $26            $26
Provision (benefit) for income taxes           ($63   )       ($25  )
Depreciation, depletion and amortization       $231           $228
Exploration expenses                           $19           $19   
EBITDAX                                        $100          $208  
                                                              
Impairments                                    –              $52
Unrealized MTM (gains) losses                  $103           $1
Loss from discontinued operations              –             $2    
Adjusted EBITDAX                               $203          $263  
                                                                    

EBITDAX represents earnings before interest expense, income taxes,
depreciation, depletion and amortization and exploration expenses. Adjusted
EBITDAX includes adjustments for impairments, unrealized mark-to-market gains
(losses) and discontinued operations.

WPX believes that these non-GAAP measures provide useful information regarding
its ability to meet future debt service, capital expenditures and working
capital requirements.

PRODUCTION

WPX’s overall domestic and international production in first-quarter 2013 was
1,268 MMcfe/d, down 10 percent vs. the same period in 2012 but in line with
the company’s 2013 forecast.

Total natural gas production of 1,021 MMcf/d in first-quarter 2013 decreased
10 percent vs. the prior-year period and 5 percent vs. fourth-quarter 2012.
This was expected given WPX’s disciplined approach to gas development in a
lower commodity price environment.

For example, on average, it takes approximately seven drilling rigs to
maintain a flat natural gas production rate in the Piceance Basin. At lower
gas prices, WPX deployed an average of five rigs in the Piceance in the latter
half of 2012 and first quarter of 2013.

Marcellus natural gas production in the Appalachian Basin increased 40 percent
to 74 MMcf/d vs. a year ago. The March exit rate was higher at 82 MMcf/d.
Ongoing third-party infrastructure constraints are starting to be resolved. A
service provider completed three field compression sites in March that support
WPX production in Susquehanna County. Those facilities are undergoing startup
procedures.

Oil production in the Williston Basin increased 50 percent to an average of
11,500 barrels per day in the first quarter vs. 7,700 barrels per day in the
same period a year ago.

Williston operations were temporarily affected early in the quarter by winter
storms and sub-zero temperatures. The sequential quarter increase would have
been higher barring these short-lived impacts. For example, the average
production rate in March was 12,500 barrels per day.

NGL production in the Piceance Basin also decreased vs. a year ago, down 32
percent to 20.2 Mbbl/d due to lower ethane recovery rates. WPX’s ethane
recovery rate in the first-quarter was 47 percent, which is consistent with
the company’s 2013 production forecast.

                                                            
Average Daily Production       1Q                           4Q      Sequential
                               2013    2012   Change     2012   Change
Natural gas (MMcf/d)                  
Piceance Basin                 614       690     -11  %     637     -4     %
Appalachian Basin              74        53      40   %     71      4      %
Powder River Basin             182       223     -18  %     195     -7     %
San Juan Basin                 124       139     -11  %     138     -10    %
International                  17        19      -11  %     19      -11    %
Other                       10      9      11   %     10     0      %
Subtotal (MMcf/d)              1,021     1,133   -10  %     1,070   -5     %
                                                                    
Oil (Mbbl/d)
Williston Basin                11.5      7.7     50   %     11.4    1      %
Piceance Basin                 2.0       2.8     -29  %     2.0     0      %
International                  5.6       5.6     0    %     5.8     -3     %
Other                       0.3     0.0    NM        0.2    NM     
Subtotal (Mboe/d)              19.4      16.1    21   %     19.4    0      %
                                                                    
NGLs (Mbbl/d)
Piceance Basin                 20.2      29.6    -32  %     23.1    -13    %
International                  0.5       0.5     0    %     0.5     0      %
Other                       1.0     0.6    67   %     1.4    -29    %
Subtotal (Mbbl/d)              21.7      30.7    -29  %     25.0    -13    %
                                                                    
Total Production               1,268   1,413  -10  %     1,336  -5     %
(MMcfe/d)
                                                                    

EXPENSES

WPX’s domestic expenses were approximately 18 percent lower in first-quarter
2013 than the same period in 2012, primarily driven by lower gas management
expenses, lower gathering, processing and transportation expenses and the
absence of an impairment recorded in the 2012 period.

WPX is now benefitting from favorable long-term liquids processing contracts
associated with the Willow Creek facility in the Piceance Basin. The
renegotiated arrangement was effective Jan. 1.

WPX's domestic lease operating expenses (LOE) in first-quarter 2013 were $67
million vs. $61 million in first-quarter 2012. The increase is primarily
attributable to increased water disposal costs resulting from decreased
drilling and completion activities.

Domestic gathering, processing and transportation charges were $106 million in
first-quarter 2013 vs. $135 million in first-quarter 2012. One of the drivers
behind the 21 percent improvement is the effect of more favorable contract
terms for gathering and processing services in the Piceance.

Taxes other than income for domestic operations in first-quarter 2013 were $29
million vs. $25 million in first-quarter 2012. Domestic general and
administrative expenses (G&A) were $69 million in first-quarter 2013 vs. $65
million in first-quarter 2012.

Domestic depreciation, depletion and amortization expenses (DD&A) were $224
million in first-quarter 2013 vs. $222 million in first-quarter 2012. The
nominal increase reflects the decline in the reserve base used in the
calculation of the company’s DD&A rate, which was driven by a decline in the
12-month historical average commodity price.

CASH AND LIQUIDITY

Net cash provided by operating activities in first-quarter 2013 was $143
million, compared with $252 million in first-quarter 2012. The decrease
primarily stems from lower natural gas and NGL revenues.

At March 31, WPX had approximately $74 million in unrestricted domestic cash
and cash equivalents and $38 million in international cash. The company’s
total liquidity at the end of first-quarter 2013 was approximately $1.5
billion after drawing $80 million from its $1.5 billion revolving credit
agreement. Subsequent to the close of the quarter, WPX drew an additional $100
million from the revolver.

DEVELOPMENT ACTIVITY

In the first quarter of 2013, WPX participated in 115 gross (92 net) wells in
the United States. This represents the number of wells that were completed and
began commercial delivery of production.

Highlights for the company’s operated wells in its primary areas are provided
below, as well as those for WPX’s new opportunities. The balance of gross
(net) wells is accounted for in non-operated interests, as well as WPX’s own
properties in the San Juan and Powder River basins.

In the Piceance Basin, WPX completed 74 gross (71 net) wells in first-quarter
2013. The company deployed five rigs on its Piceance acreage during the
majority of the first quarter.

Subsequent to the close of the first quarter, WPX started drilling its second
Niobrara well in the Piceance on April 3. The company expects to begin
completion activities in June. As previously announced, WPX plans to drill a
total of four horizontal Niobrara wells in 2013.

WPX’s Niobrara discovery well in the Piceance Basin registered an average
production rate of almost 10 million cubic feet per day in the first quarter,
despite being choked back substantially. It has already exceeded more than 1
billion cubic feet in cumulative production.

In the Williston Basin, WPX completed 12 gross (9 net) wells during the first
quarter. WPX has four rigs deployed in the area. A shift to multi-well
development pads, along with new completion efficiencies, is driving lower
costs. WPX’s recent Williston well costs are down 10 to 20 percent through
these improvements.

During the first quarter, WPX completed three Williston Basin wells
simultaneously in 6.5 days using a “zipper frac” application. Previously, it
would have taken 15 days to complete the three wells individually. The
majority of future completions work in the Williston will be performed using
zipper fracs on two or three wells simultaneously.

In the Appalachian Basin, WPX completed seven gross (six net) wells during the
first quarter. The company has one rig deployed in Appalachian, located in
Westmoreland County which is in the southwestern portion of Pennsylvania. In
Susquehanna County, infrastructure resolutions are under way via both WPX and
third-party installations. These measures will benefit the capacity and
reliability of systems that support production.

During the first quarter, WPX also commenced exploratory oil drilling in a new
area. As previously announced, WPX plans to drill eight exploratory oil wells
in two new areas this year. The company plans to report initial results on the
first area by mid-year.

POTENTIAL ASSET SALES

WPX has completed a data room process for its holdings in Wyoming’s Powder
River Basin, including the deep rights on its acreage. WPX is evaluating bids
submitted by interested third parties and remains engaged with the process to
explore the potential monetization of these assets.

Additionally, WPX will consider the disposition of its interests in Apco Oil
and Gas International, Inc. (NASDAQ:APAGF). WPX holds an approximate 69
percent controlling equity interest in Apco, which owns oil and gas interests
in Argentina and Colombia.

WPX’s holdings in Apco represent 3 percent of WPX’s year-end 2012 proved
reserves of 4.65 trillion cubic feet equivalent and 4 percent of WPX’s 2012
average daily production.

TODAY’S CONFERENCE CALL

WPX management will discuss its first-quarter results during a webcast
starting at 10 a.m. Eastern today. Participants can access the audio and the
slides for the event via the homepage at www.wpxenergy.com.

A limited number of phone lines also will be available at (866) 515-2907.
International callers should dial (617) 399-5121. The passcode for both lines
is 99483783. A replay will be available on the company’s website for one year
following the event.

Form 10-Q

WPX plans to file its first-quarter Form 10-Q with the Securities and Exchange
Commission this week. Once filed, the document will be available on both the
SEC and WPX websites.

PROVED RESERVES RECONCILIATION

As previously reported, WPX had domestic proved reserves at Dec. 31, 2012, of
nearly 4.5 trillion cubic feet equivalent based on 2012 commodity price
averages. Under an alternative scenario applying 2011 prices, year-end 2012
domestic reserves were 19 percent higher at 5,339 Bcfe.

                                                            
Domestic Proved Reserves       2011         2011         2012         2012
                               Year-End   Adjusted   Year-End   Adjusted
Natural Gas (Bcf)              3,983        3,760        3,369        4,073
NGL (MMbbl)                    134          133          110          132
Oil (MMbbl)                    47         47         77         79
Total in Bcf equivalent        5,070      4,846      4,491      5,339
                                                                      
2011 adjusted excludes discontinued operations that were divested in 2012.
2012 adjusted represents an alternate price scenario using 2011 SEC prices.


The alternate scenario reflects SEC prices used for the company’s year-end
2011 reserves which were calculated using the 12-month average,
first-of-the-month price during 2011 for the applicable indices for each
basin, as adjusted for local price differentials.

About WPX Energy, Inc.

WPX Energy is an exploration and production company focused on developing its
significant oil and gas reserves, particularly in the Piceance, Williston and
Appalachian basins. WPX also has domestic operations in the San Juan and
Powder River basins, as well as a 69 percent interest in Apco Oil and Gas
International. Go to http://www.wpxenergy.com/investors.aspx to join our
e-mail list.

This press release includes “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements, other
than statements of historical facts, included in this press release that
address activities, events or developments that the company expects, believes
or anticipates will or may occur in the future are forward-looking statements.
Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the company. Statements
regarding future drilling and production are subject to all of the risks and
uncertainties normally incident to the exploration for and development and
production of oil and gas. These risks include, but are not limited to, the
volatility of oil, natural gas and NGL prices; uncertainties inherent in
estimating oil, natural gas and NGL reserves; drilling risks; environmental
risks; and political or regulatory changes. Investors are cautioned that any
such statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected in the
forward-looking statements. The forward-looking statements in this press
release are made as of the date of this press release, even if subsequently
made available by WPX Energy on its website or otherwise. WPX Energy does not
undertake and expressly disclaims any obligation to update the forward-looking
statements as a result of new information, future events or otherwise.
Investors are urged to consider carefully the disclosure in our filings with
the Securities and Exchange Commission, available from us at WPX Energy, Attn:
Investor Relations, P.O. Box 21810, Tulsa, Okla., 74102, or from the SEC’s
website at www.sec.gov.

Additionally, the SEC requires oil and gas companies, in filings made with the
SEC, to disclose proved reserves, which are those quantities of oil and gas,
which, by analysis of geoscience and engineering data, can be estimated with
reasonable certainty to be economically producible – from a given date
forward, from known reservoirs, under existing economic conditions, operating
methods, and governmental regulations. The SEC permits the optional disclosure
of probable and possible reserves. From time to time, we elect to use
“probable” reserves and “possible” reserves, excluding their valuation. The
SEC defines “probable” reserves as “those additional reserves that are less
certain to be recovered than proved reserves but which, together with proved
reserves, are as likely as not to be recovered.” The SEC defines“possible”
reserves as “those additional reserves that are less certain to be recovered
than probable reserves.” The Company has applied these definitions in
estimating probable and possible reserves. Statements of reserves are only
estimates and may not correspond to the ultimate quantities of oil and gas
recovered. Any reserve estimates provided in this presentation that are not
specifically designated as being estimates of proved reserves may include
estimated reserves not necessarily calculated in accordance with, or
contemplated by, the SEC's reserves reporting guidelines. Investors are urged
to consider closely the disclosure in our SEC filings that may be accessed
through the SEC’s website at www.sec.gov.

The SEC’s rules prohibit us from filing resource estimates. Our resource
estimations include estimates of hydrocarbon quantities for (i) new areas for
which we do not have sufficient information to date to classify as proved,
probable or even possible reserves, (ii) other areas to take into account the
low level of certainty of recovery of the resources and (iii) uneconomic
proved, probable or possible reserves. Resource estimates do not take into
account the certainty of resource recovery and are therefore not indicative of
the expected future recovery and should not be relied upon. Resource estimates
might never be recovered and are contingent on exploration success, technical
improvements in drilling access, commerciality and other factors.

                                                                     
WPX Energy,
Inc.
Consolidated
(UNAUDITED)
       
                   2012                                                           2013
(Dollars in      1st Qtr   2nd Qtr   3rd Qtr   4th Qtr    Year        1st Qtr
millions)
                                                                                  
Revenues:
Product
revenues:
Natural gas        $ 357       $ 312       $ 331       $ 364        $ 1,364       $ 267
sales
Oil and
condensate           106         122         118         145          491           139
sales
Natural gas         93      78      65      63       299         54   
liquid sales
Total product        556         512         514         572          2,154         460
revenues
Gas management       337         187         186         239          949           261
Net gain
(loss) on
derivatives          14          71          (22 )       15           78            (94  )
not designated
as hedges
Other               3       5       (1  )    1        8           4    
Total revenues       910         775         677         827          3,189         631
                                                                                  
Costs and
expenses:
Lease and
facility             67          67          68          81           283           75
operating
Gathering,
processing and       135         120         124         127          506           107
transportation
Taxes other          30          25          23          33           111           35
than income
Gas
management,
including
charges for          355         194         200         247          996           243
unutilized
pipeline
capacity
Exploration          19          19          22          23           83            19
Depreciation,
depletion and        228         248         243         247          966           231
amortization
Impairment of
producing
properties and
costs of             52          65          -           108          225           -
acquired
unproved
reserves
General and          68          71          67          81           287           72
administrative
Other-net           5       (2  )    5       4        12          7    
Total costs          959         807         752         951          3,469         789
and expenses
                                                                                  
Operating            (49 )       (32 )       (75 )       (124 )       (280  )       (158 )
income (loss)
                                                                                  
Interest             (26 )       (26 )       (25 )       (25  )       (102  )       (26  )
expense
Interest             2           3           2           1            8             1
capitalized
Investment
income and          10      8       7       5        30          7    
other
                                                                                  
Income (loss)
from
continuing         $ (63 )     $ (47 )     $ (91 )     $ (143 )     $ (344  )     $ (176 )
operations
before income
taxes
Provision
(benefit) for       (25 )    (18 )    (28 )    (40  )    (111  )      (63  )
income taxes
Income (loss)
from               $ (38 )     $ (29 )     $ (63 )     $ (103 )     $ (233  )     $ (113 )
continuing
operations
Income (loss)
from                (2  )    23      2       (1   )    22          -    
discontinued
operations
Net income         $ (40 )     $ (6  )     $ (61 )     $ (104 )     $ (211  )     $ (113 )
(loss)
Less: Net
income
attributable        3       4       3       2        12          3    
to
noncontrolling
interests
Net income
(loss)             $ (43 )   $ (10 )   $ (64 )   $ (106 )   $ (223  )     $ (116 )
attributable
to WPX Energy
                                                                                  
                                                                                  
                                                           
Adjusted
EBITDAX
Reconciliation
to net income
(loss):
Net income         $ (40 )     $ (6  )     $ (61 )     $ (104 )     $ (211  )     $ (113 )
(loss)
Interest             26          26          25          25           102           26
expense
Provision
(benefit) for        (25 )       (18 )       (28 )       (40  )       (111  )       (63  )
income taxes
Depreciation,
depletion and        228         248         243         247          966           231
amortization
Exploration         19      19      22      23       83          19   
expenses
EBITDAX              208         269         201         151          829           100
Impairment of
producing
properties and
costs of             52          65          -           108          225           -
acquired
unproved
reserves
Unrealized MTM       1           (60 )       31          (4   )       (32   )       103
(gains) losses
(Income) loss
from                2       (23 )    (2  )    1        (22   )      -    
discontinued
operations
Adjusted           $ 263    $ 251    $ 230    $ 256     $ 1,000      $ 203  
EBITDAX
                                                                                  

                                                                                             
  WPX Energy, Inc.
  Domestic Segment
  (UNAUDITED)
             
                               2012                                                                    2013
  (Dollars in millions)      1st Qtr      2nd Qtr      3rd Qtr      4th Qtr      YTD           1st Qtr
                                                                                                       
    Revenues:
          Product
          revenues:
            Natural gas        $ 353         $ 307         $ 327         $ 359         $ 1,346         $ 263
            sales
            Oil and
            condensate           80            95            87            114           376             111
            sales
            Natural gas         92         77         65         62         296           53      
            liquid sales
                 Total
                 product         525           479           479           535           2,018           427
                 revenues
            Gas management       337           187           186           239           949             261
            Net gain
            (loss) on
            derivatives          14            71            (22     )     15            78              (94     )
            not designated
            as hedges
            Other               3          4          (1      )   1          7             1       
                 Total           879           741           642           790           3,052           595
                 revenues
                                                                                                       
    Costs and expenses:
            Lease and
            facility             61            60            60            70            251             67
            operating
            Gathering,
            processing and       135           120           124           125           504             106
            transportation
            Taxes other          25            18            17            27            87              29
            than income
            Gas
            management,
            including
            charges for          355           194           200           247           996             243
            unutilized
            pipeline
            capacity
            Exploration          14            16            19            23            72              18
            Depreciation,
            depletion and        222           242           236           239           939             224
            amortization
            Impairment of
            producing
            properties and
            costs of             52            65            -             108           225             -
            acquired
            unproved
            reserves
            General and          65            68            64            76            273             69
            administrative
            Other-net           5          -          4          3          12            6       
                 Total
                 costs and       934           783           724           918           3,359           762
                 expenses
                                                                                                       
    Operating income             (55     )     (42     )     (82     )     (128    )     (307    )       (167    )
    (loss)
                                                                                                       
    Interest expense             (26     )     (26     )     (25     )     (25     )     (102    )       (26     )
    Interest capitalized         2             3             2             1             8               1
    Investment income and       2          -          1          -          3             2       
    other
                                                                                                       
    Income (loss) from
    continuing operations      $ (77     )  $ (65     )  $ (104    )  $ (152    )  $ (398    )     $ (190    )
    before income taxes
                                                                                    
                                                                                    
    Summary of Production
    Volumes
    Natural gas (MMcf)           101,346       102,163       97,310        96,664        397,483         90,411
    Oil (MBbls)                  948           1,123         1,076         1,247         4,394           1,242
    Natural gas liquids          2,746         2,779         2,613         2,254         10,392          1,907
    (MBbls)
    Combined equivalent          123,511       125,574       119,443       117,670       486,198         109,303
    volumes (MMcfe)(1)
                                                                                                       
    (1)  Oil and natural gas liquids were converted to MMcfe using the ratio of one barrel of oil, condensate or
          natural gas liquids to six thousand cubic feet of natural gas.
                                                                                    
                                                                                    
    Realized average price per unit,
    including the impact of hedges
          Natural gas (per     $ 3.48        $ 3.01        $ 3.35        $ 3.71        $ 3.38          $ 2.90
          Mcf)
          Oil (per barrel)     $ 84.54       $ 83.89       $ 82.31       $ 90.76       $ 85.58         $ 89.77
          Natural gas
          liquids (per         $ 33.46       $ 27.96       $ 24.43       $ 28.12       $ 28.56         $ 28.21
          barrel)
                                                                                                       
                                                                                    
    Expenses per Mcfe
          Lease and
          facility             $ 0.50        $ 0.47        $ 0.51        $ 0.60        $ 0.52          $ 0.61
          operating
          Gathering,
          processing and       $ 1.09        $ 0.95        $ 1.04        $ 1.06        $ 1.04          $ 0.98
          transportation
          Taxes other than     $ 0.20        $ 0.15        $ 0.14        $ 0.23        $ 0.18          $ 0.27
          income
          Depreciation,
          depletion and        $ 1.80        $ 1.93        $ 1.98        $ 2.02        $ 1.93          $ 2.04
          amortization
          General and          $ 0.52        $ 0.54        $ 0.53        $ 0.65        $ 0.56          $ 0.62
          administrative
                                                                                                       
                                                                                    
    Unutilized pipeline
    capacity
          Total unutilized
          pipeline
          capacity in gas      $ 11          $ 12          $ 12          $ 11          $ 46            $ 13
          management
          expense
                                                                                                                 

                                                                   
WPX Energy, Inc.
International
Segment
(UNAUDITED)
        
                     2012                                                   2013
(Dollars in        1st Qtr  2nd Qtr    3rd Qtr  4th Qtr  YTD        1st Qtr
millions)
                                                                            
  Revenues:
  Product
  revenues:
  Natural gas        $ 4       $ 5         $ 4       $ 5       $ 18         $ 4
  sales
  Oil and
  condensate           26        27          31        31        115          28
  sales
  Natural gas         1       1        -       1       3           1
  liquid sales
  Total product        31        33          35        37        136          33
  revenues
  Gas management       -         -           -         -         -            -
  Net gain
  (loss) on
  derivatives          -         -           -         -         -            -
  not designated
  as hedges
  Other               -       1        -       -       1           3
  Total revenues       31        34          35        37        137          36
                                                                            
  Costs and
  expenses:
  Lease and
  facility             6         7           8         11        32           8
  operating
  Gathering,
  processing and       -         -           -         2         2            1
  transportation
  Taxes other          5         7           6         6         24           6
  than income
  Gas
  management,
  including
  charges for          -         -           -         -         -            -
  unutilized
  pipeline
  capacity
  Exploration          5         3           3         -         11           1
  Depreciation,
  depletion and        6         6           7         8         27           7
  amortization
  Impairment of
  producing
  properties and
  costs of             -         -           -         -         -            -
  acquired
  unproved
  reserves
  General and          3         3           3         5         14           3
  administrative
  Other-net           -       (2    )   1       1       -           1
  Total costs          25        24          28        33        110          27
  and expenses
                                                                            
  Operating            6         10          7         4         27           9
  income (loss)
                                                                            
  Interest             -         -           -         -         -            -
  expense
  Interest             -         -           -         -         -            -
  capitalized
  Investment
  income and          8       8        6       5       27          5
  other
                                                                            
  Income (loss)
  from
  continuing         $ 14     $ 18      $ 13     $ 9      $ 54         $ 14
  operations
  before income
  taxes
                                                        
                                                        
  Summary of Net
  Production
  Volumes (1)
  Natural gas          1,737     1,726       1,861     1,737     7,061        1,485
  (MMcf)
  Oil (MBbls)          507       562         573       536       2,178        506
  Natural gas
  liquids              45        44          45        47        181          42
  (MBbls)
  Combined
  equivalent           5,052     5,362       5,569     5,235     21,218       4,775
  volumes
  (MMcfe)(2)

           Reflects approximately 69 percent of Apco's production (which
  ^(1)  corresponds to our ownership interest in Apco) and other minor
           directly held interests.
           Oil and natural gas liquids were converted to MMcfe using the ratio
    ^(2)   of one barrel of oil, condensate or natural gas liquids to six
           thousand cubic feet of natural gas.
           

                                                                          
WPX Energy, Inc.
Reconciliation- Adjusted Income (Loss) from Continuing
Operations
(UNAUDITED)
          
                     2012                                                          2013
(Dollars in
millions, except   1st Qtr    2nd Qtr    3rd Qtr    4th Qtr    Year        1st Qtr
per share
amounts)
                                                                                   
Income (loss)
from continuing
operations
attributable to      $ (41   )  $ (33   )  $ (66   )  $ (105  )  $ (245  )     $ (116  )
WPX Energy, Inc.
available to
common
stockholders
Income (loss)
from continuing
operations -         $ (0.21 )  $ (0.17 )  $ (0.33 )  $ (0.53 )  $ (1.23 )     $ (0.58 )
diluted earnings
per share
Adjustments:
Impairment of
producing
properties and
costs of             $ 52        $ 65        $ -         $ 108       $ 225         $ -
acquired
unproved
reserves
Unrealized MTM       $ 1       $ (60   )  $ 31      $ (4    )  $ (32   )     $ 103   
(gains) losses
Total                $ 53        $ 5         $ 31        $ 104       $ 193         $ 103
adjustments
Less tax effect      $ (19   )  $ (2    )  $ (12   )  $ (38   )  $ (71   )     $ (38   )
for above items
Adjusted income
(loss) from
continuing
operations           $ (7    )  $ (30   )  $ (47   )  $ (39   )  $ (123  )     $ (51   )
available to
common
stockholders
Adjusted diluted
earnings (loss)      $ (0.04 )  $ (0.15 )  $ (0.23 )  $ (0.20 )  $ (0.62 )     $ (0.25 )
per common share
Weighted-average
shares -diluted        198.1       198.9       199.1       199.2       198.8         199.9
- millions
                                                                                   


WPX Energy, Inc.
Consolidated Balance Sheets
(Unaudited)
                                                      
                               March 31,                   December 31,
                               2013                          2012
ASSETS                         (Dollars in millions, except per share amounts)
Current assets:
Cash and cash equivalents      $     112                     $    153
Accounts receivable, net
of allowance of $10 at               411                          443
March 31, 2013 and $ 11 at
December 31, 2012
Deferred income taxes                33                           17
Derivative assets                    20                           58
Inventories                          54                           66
Other                               50                         35       
Total current assets                 680                          772
Investments                          148                          145
Properties and equipment
(successful efforts method           13,613                       13,339
of accounting)
Less: Accumulated
depreciation, depletion             (5,162    )                 (4,923   )
and amortization
Properties and equipment,            8,451                        8,416
net
Derivative assets                    4                            2
Other noncurrent assets             121                        121      
Total assets                   $     9,404                  $    9,456    
                                                             
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable               $     521                     $    509
Accrued and other current            145                          203
liabilities
Deferred income taxes                -                            -
Derivative liabilities              85                         14       
Total current liabilities            751                          726
Deferred income taxes                1,347                        1,401
Long-term debt                       1,589                        1,508
Derivative liabilities               -                            1
Asset retirement                     323                          316
obligations
Other noncurrent                     137                          133
liabilities
                                                             
Equity:
Stockholders' equity:
Preferred Stock (100
million shares authorized            -                            -
at $0.01 par value; no
shares issued)
Common Stock (2 billion
shares authorized at $0.01
par value; 200.3 million
shares issued at March 31,           2                            2
2013 and 199.3 million
shares issued at December
31, 2012)
Additional paid-in-capital           5,489                        5,487
Accumulated deficit                  (339      )                  (223     )
Accumulated other                   (1        )                 2        
comprehensive income
Total stockholders' equity           5,151                        5,268
Noncontrolling interests
in consolidated                     106                        103      
subsidiaries
Total equity                        5,257                      5,371    
Total liabilities and          $     9,404                  $    9,456    
equity


WPX Energy, Inc.
Consolidated Statements of Operations
(Unaudited)
                                                          
                                          Three months ended March 31,
                                          2013                  2012
                                          (Millions, except per share amounts)
Revenues:
Product revenues:
Natural gas sales                         $   267                 $  357
Oil and condensate sales                      139                    106
Natural gas liquid sales                     54                   93     
Total product revenues                        460                    556
Gas management                                261                    337
Net gain (loss) on derivatives not            (94     )              14
designated as hedges
Other                                        4                    3      
Total revenues                                631                    910
Costs and expenses:
Lease and facility operating                  75                     67
Gathering, processing and                     107                    135
transportation
Taxes other than income                       35                     30
Gas management, including charges             243                    355
for unutilized pipeline capacity
Exploration                                   19                     19
Depreciation, depletion and                   231                    228
amortization
Impairment of costs of acquired               -                      52
unproved reserves
General and administrative                    72                     68
Other - net                                  7                    5      
Total costs and expenses                      789                    959
                                                                  
Operating income (loss)                       (158    )              (49    )
Interest expense                              (26     )              (26    )
Interest capitalized                          1                      2
Investment income and other                  7                    10     
Income (loss) from continuing                 (176    )              (63    )
operations before income taxes
Provision (benefit) for income               (63     )             (25    )
taxes
Income (loss) from continuing                 (113    )              (38    )
operations
Income (loss) from discontinued              -                    (2     )
operations
Net income (loss)                             (113    )              (40    )
Less: Net income attributable to             3                    3      
noncontrolling interests
Net income (loss) attributable to         $   (116    )           $  (43    )
WPX Energy
                                                                  
Amounts attributable to WPX Energy,
Inc.:
Basic and diluted earnings (loss)
per common share:
Income (loss) from continuing             $   (0.58   )           $  (0.21  )
operations
Income (loss) from discontinued              -                    (0.01  )
operations
Net income (loss)                         $   (0.58   )           $  (0.22  )
                                                                  
Weighted-average shares                       199.9                  198.1
                                                                  

                                                             
WPX Energy, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
                                                                    
                                                  Three months ended March 31,
                                                  2013            2012
                                                  (Millions)
Operating Activities
Net income (loss)                                 $  (113  )        $  (40   )
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation, depletion and amortization             231               235
Deferred income tax benefit                          (68   )           (37   )
Provision for impairment of properties and
equipment (including certain exploration             14                64
expenses)
Amortization of stock-based awards                   8                 6
Cash provided (used) by operating assets
and liabilities:
Accounts receivable                                  33                96
Inventories                                          12                11
Margin deposits and customer margin                  (11   )           (7    )
deposits payable
Other current assets                                 (9    )           (9    )
Accounts payable                                     5                 (80   )
Accrued and other current liabilities                (63   )           17
Changes in current and noncurrent                    103               1
derivative assets and liabilities
Other, including changes in other                   1               (5    )
noncurrent assets and liabilities
Net cash provided by operating activities           143             252   
                                                                    
Investing Activities
Capital expenditures (a)                             (271  )           (428  )
Deposit received from buyer of Barnett               -                 31
Shale and Arkoma assets
Purchases of investments                             -                 (2    )
Other                                               -               4     
Net cash used in investing activities               (271  )          (395  )
                                                                    
Financing Activities
Proceeds from common stock                           1                 1
Proceeds from long-term debt                         -                 6
Borrowings on credit facility                        80                -
Other                                               6               (28   )
Net cash provided by (used in) financing            87              (21   )
activities
                                                                    
Net increase (decrease) in cash and cash             (41   )           (164  )
equivalents
Cash and cash equivalents at beginning of           153             526   
period
Cash and cash equivalents at end of period        $  112           $  362   
                                                                    
________
(a) Increase to properties and equipment          $  (277  )        $  (369  )
Changes in related accounts payable                 6               (59   )
Capital expenditures                              $  (271  )        $  (428  )

Contact:

WPX Energy
Media Contact:
Kelly Swan, 539-573-4944
or
Investor Contact:
David Sullivan, 539-573-9360