Critical Review: WPX Energy (WPX) & The Competition
WPX Energy (NYSE: WPX) is one of 247 public companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare WPX Energy to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.
Institutional and Insider Ownership
97.7% of WPX Energy shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 1.4% of WPX Energy shares are owned by company insiders. Comparatively, 11.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares WPX Energy and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WPX Energy Competitors||-434.48%||-0.86%||2.02%|
Risk and Volatility
WPX Energy has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, WPX Energy’s peers have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.
This is a summary of current ratings for WPX Energy and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WPX Energy Competitors||1442||7477||12111||257||2.53|
WPX Energy currently has a consensus price target of $15.62, indicating a potential upside of 47.06%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 38.14%. Given WPX Energy’s stronger consensus rating and higher possible upside, analysts clearly believe WPX Energy is more favorable than its peers.
Earnings and Valuation
This table compares WPX Energy and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|WPX Energy||$1.00 billion||$569.00 million||-12.80|
|WPX Energy Competitors||$1.39 billion||$598.77 million||21.53|
WPX Energy’s peers have higher revenue and earnings than WPX Energy. WPX Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
About WPX Energy
WPX Energy, Inc. is an oil and natural gas exploration and production company. The Company is engaged in the exploitation and development of unconventional properties. It operates in the exploration and production segment of the oil and gas industry and its operations are conducted in the United States. It is focused on exploiting, developing and growing its oil positions in the Delaware (a subset of the Permian Basin) and San Juan Basins in the southwestern United States and the Williston Basin in North Dakota. As of December 31, 2016, it operated 642 wells in the Delaware Basin and also owned interests in 783 wells operated by others. As of December 31, 2016, it held approximately 98,000 acres in the Delaware Basin, with operations located in Eddy, Lea and Chaves Counties in New Mexico and Loving, Pecos, Reeves, Ward and Winkler Counties in Texas. Its activity in the Delaware Basin is focused on the Wolfcamp Shale formation, the Bone Spring interval and the Delaware sand interval.
Receive News & Ratings for WPX Energy Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WPX Energy Inc. and related companies with MarketBeat.com's FREE daily email newsletter.