IB Net Payout Yields Model

WPX Energy Still Lacks Growth, Leading to Low Valuation

Several years after a promising spinoff from Williams Companies (NYSE: WMB  ) , WPX Energy (NYSE: WPX  ) is still struggling to build a growing production base. The E&P has hit some prolific wells in the Niobrara Shale, yet issues in the Marcellus combined with declining legacy fields have left the company bumping along the bottom. At the time of the spinoff, WPX Energy reached production levels of 1,308 MMcfe/d and forecasted that the 13% annual production growth would continue.

The guidance for 2014 again shows a natural gas producer stuck in its tracks. This is in contrast to Range Resources Corporation (NYSE: RRC  ) , which continues to produce higher volumes and ramp up proven reserves in the very region where WPX Energy is having the most problems.

Read the full article here.

Disclosure: Long WPX. Please review the disclaimer page for more details. 


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