WPX Falls Most Since Spinoff After Spending Boost

WPX Energy Inc. (WPX), the oil and natural-
gas producer spun off from Williams Cos., fell the most since
trading began after boosting its 2012 spending plan.

The shares dropped 7.7 percent to $14.70 at 3:05 p.m. in
New York, the biggest decline since it began trading publicly on
Jan. 3.

WPX increased its planned spending 17 percent to about $1.4
billion from a prior estimate of $1.2 billion, according to a
statement from the Tulsa, Oklahoma-based company today. The
additional funds will be used to buy land in oil-rich areas for
costs associated with Bakken Shale drilling and completions.

“We are cautious on higher capex in weak price environment
and think shares are reacting accordingly today,” Michael Kay,
a New York-based analyst for Standard & Poor’s, said in a note.
S&P, which rates WPX as a hold, cut its price target and widened
the company’s estimated 2012 loss by 3 cents to 25 cents a
share.

WPX drills in North Dakota and the Rocky Mountains and saw
gas prices drop 32 percent from a year earlier to $3.01 per
thousand cubic feet in the second quarter. Prices for natural
gas liquids fell 33 percent to $27.96 a barrel, the company
said.

WPX reported second-quarter net loss of $10 million, or 5
cents a share, compared with net income of $25 million, or 13
cents, a year earlier.