UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 4, 2014

WPX Energy, Inc.
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	1-35322	 	45-1836028	
(State or Other Jurisdiction
of Incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	

3500 One Williams Center, Tulsa, Oklahoma	 	74172-0172	
(Address of Principal Executive Offices)	 	(Zip Code)	
Registrant’s Telephone Number, Including Area Code: 855-979-2012

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 	¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
 	¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
 	¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
 	¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02 Results of Operations and Financial Condition
On November 4, 2014, WPX Energy, Inc. announced financial results for the third quarter of 2014. A copy of the press release announcing the same is attached hereto as Exhibit 99.1.
 
1

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WPX ENERGY, INC.	
		
By:	 	/s/ Stephen E. Brilz	
	 	Stephen E. Brilz
Vice President and Secretary	
DATED: November 4, 2014

EXHIBIT INDEX

Exhibit No.	  	Description	
		
Exhibit 99.1	  	Press release dated November 4, 2014	

Exhibit 99.1

DATE: Nov. 4, 2014

MEDIA CONTACT:
Kelly Swan
(539) 573-4944	  	INVESTOR CONTACT:
David Sullivan
(539) 573-9360	  	    	  	    	
Commodity Diversity Drives WPX Energy 3Q Net Income
TULSA, Okla. – WPX Energy’s (NYSE:WPX) unaudited results for the third quarter of 2014 reflect the benefit of continued increases in crude oil production and greater balance in commodity revenue streams, as well as the reclassification of coalbed methane properties in the Powder River Basin to discontinued operations.
Domestic oil production climbed 52 percent higher in third-quarter 2014 vs. third-quarter 2013. WPX’s crude oil production in the Williston Basin surpassed an average of 20,000 barrels per day during third-quarter 2014. In the San Juan Basin, WPX sold its one millionth net barrel of oil from the Gallup play in less than 18 months after initial production while averaging 1.5 rigs during this time.
During the third quarter, oil and liquids (NGL) sales accounted for 56 percent of WPX’s domestic product revenues of $453 million and nearly 26 percent of the company’s domestic production volumes of just over 1 billion cubic feet per day equivalent.
WPX is in the process of completing the sale of its mature coalbed methane properties in the Powder River Basin. WPX signed an agreement in August and expects to complete the transaction in December. Results from these properties are now reflected as discontinued operations for all periods.
“A more focused and more balanced WPX is emerging,” said Rick Muncrief, WPX president and chief executive officer. “We’re simplifying our story, leveraging the optionality in our portfolio and pursuing a long-term margin expansion strategy.”
POST-QUARTER ITEMS
On Oct. 3, WPX announced an agreement to sell its international interests for approximately $294 million subject to the successful completion of the definitive merger agreement entered into between privately held Pluspetrol Resources Corporation and Apco Oil and Gas International. WPX has a 69 percent controlling equity interest in Apco.
Additionally, WPX’s gas sales agreement with a firm shipper on the Rockies Express Pipeline expires on Nov. 11, 2014, and is expected to improve natural gas revenues by more than $100 million on an annualized basis.

Both of these items will be reflected in WPX’s fourth-quarter results since they are occurring subsequent to the close of the third-quarter.
THIRD-QUARTER AND NINE-MONTH 2014 FINANCIAL RESULTS
WPX reported unaudited net income attributable to WPX Energy of $62 million for third-quarter 2014, or income of $0.30 per share on a diluted basis, compared with a net loss of $114 million, or a loss of $0.57 per share, in the same period a year ago.
Income from continuing operations attributable to WPX Energy was $57 million for third-quarter 2014, or income of $0.28 per share on a diluted basis compared with a net loss from continuing operations of $106 million, or a loss of $0.53 per share, in the same period a year ago.
Results for third-quarter 2014 benefitted from a 29 percent increase in domestic oil revenue vs. a year ago, which was offset by a 2 percent decrease in domestic natural gas revenue, the impact of approximately $22 million in impairments of domestic exploratory leasehold and well costs, and nearly $14 million in expenses related to an early exit program and the release of a rig to a third party.
For the first nine months of 2014, WPX reported an unaudited net loss attributable to WPX Energy of $55 million, or a loss of $0.27 per share on a diluted basis, compared with a net loss of $212 million, or a loss of $1.06 per share, for the same period in 2013.
Loss from continuing operations attributable to WPX Energy for the first nine months of the year was $85 million, or a loss of $0.42 per share, compared with a loss of $202 million, or a loss of $1.01 per share, for the same period in 2013.
Results for the first nine months of 2014 were impacted by a $196 million before-tax loss associated with the sale of a portion of WPX’s working interests in certain Piceance Basin natural gas wells, $62 million in dry-hole cost and impairments of domestic exploratory leasehold and well costs, and $16 million in expenses related to an early exit program and the release of a rig to a third party. The first nine months of 2013 included a $19 million impairment to the company’s cost of acquired unproved reserves.
Excluding unrealized mark-to-market gains (losses), impairments of exploratory leasehold and well costs, early exit program expenses, and an early rig release expense, WPX had an adjusted loss from continuing operations of $4 million, or a loss of $0.02 per share on a diluted basis, for third-quarter 2014, compared with an adjusted loss from continuing operations of $80 million, or a loss of $0.39 per share, for the same period in 2013. A reconciliation accompanies this press release.
For the first nine months of 2014, WPX had adjusted income from continuing operations of $30 million, or income of $0.14 per share on a diluted basis, compared with an adjusted loss of $173 million, or a loss of $0.86 per share, for the first nine months of 2013. A reconciliation accompanies this press release.

Improved results for the first nine months of 2014 reflect the benefit of a 40 percent increase in domestic oil revenues, along with higher weighted average gross sales prices for domestic natural gas and natural gas liquids.
The weighted average gross sales price – prior to revenue deductions – for domestic natural gas was $3.30 per Mcf in third-quarter 2014 compared with $3.15 per Mcf a year ago.
The weighted average gross sales price – prior to revenue deductions – for domestic oil was $84.76 per barrel in third-quarter 2014 compared with $99.52 per barrel a year ago.
The weighted average gross sales price – prior to revenue deductions – for domestic NGL was $43.42 per barrel in third-quarter 2014 compared with $43.11 per barrel a year ago.
ADJUSTED EBITDAX
WPX’s adjusted EBITDAX (a non-GAAP measure) for third-quarter 2014 was $230 million, an increase of 32 percent compared with $174 million for the same period in 2013.
For the first nine months of 2014, WPX’s adjusted EBITDAX was $797 million, up 41 percent compared with $564 million for the same period in 2013.
The primary factors contributing to the increase in 2014 adjusted EBITDAX are increased domestic oil volumes and the corresponding increase in domestic oil revenues, as well as higher net realized average prices for natural gas.

EBITDAX (non-GAAP)	  	Third Quarter	 	 	YTD	 	
 	  	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	  	millions	 	 	millions	 	 	millions	 	 	millions	 	
Net income (loss)	  	$	66	  	 	($	116	) 	 	($	48	) 	 	($	207	) 	
Interest expense	  	$	31	  	 	$	28	  	 	$	88	  	 	$	82	  	
Provision (benefit) for income taxes	  	$	28	  	 	($	29	) 	 	($	31	) 	 	($	79	) 	
Depreciation, depletion and amortization	  	$	213	  	 	$	230	  	 	$	627	  	 	$	662	  	
Exploration expenses	  	$	29	  	 	$	21	  	 	$	101	  	 	$	59	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDAX	  	$	367	  	 	$	134	  	 	$	737	  	 	$	517	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment of producing properties, costs of acquired unproved reserves and equity investments	  	 	—  	  	 	$	19	  	 	 	—  	  	 	$	19	  	
Loss on sale of working interests in the Piceance Basin	  	$	1	  	 	 	—  	  	 	$	196	  	 	 	—  	  	
Net (gain) loss on derivatives not designated as hedges	  	($	148	) 	 	$	15	  	 	$	64	  	 	$	31	  	
Net cash received (paid) on settlement of derivatives not designated as hedges	  	$	15	  	 	($	2	) 	 	($	170	) 	 	($	13	) 	
(Income) loss from discontinued operations	  	($	5	) 	 	$	8	  	 	($	30	) 	 	$	10	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
ADJUSTED EBITDAX	  	$	230	  	 	$	174	  	 	$	797	  	 	$	564	  	

EBITDAX represents earnings before interest expense, income taxes, depreciation, depletion and amortization and exploration expenses. Adjusted EBITDAX includes adjustments for net (gain) loss on derivatives not designated as hedges, loss on the sale of working interests in the Piceance Basin, net cash received (paid) on settlement of derivatives not designated as hedges, impairments and discontinued operations.
WPX believes these non-GAAP measures provide useful information regarding its ability to meet future debt service, capital expenditures and working capital requirements.
CEO PERSPECTIVE
“We have a clear vision for creating value,” said Rick Muncrief, referring to WPX’s five-year plan that aims to increase oil production five-fold and triple its margins and company value by the year 2020.
“Already this year, we’ve entered into a series of transactions to reposition WPX that represent an aggregate value of more than $1 billion. We’re going to remain aggressive, creative and opportunistic as we execute our plan.
“It’s also important for us to stay focused on the long-term as we see volatility in the markets. For 2015, we’ve locked in about half of our projected oil volumes at an average of nearly $95 per barrel and about half of our expected natural gas production at just over $4.25 per MMbtu.
“We’re directly linking our hedging to our capital plan, which gives us confidence in the cash flow that supports our drilling program,” Muncrief added.
PRODUCTION
WPX’s overall domestic and international production for third-quarter 2014 – not including volumes for discontinued operations – was 1,065 MMcfe/d, consistent with the company’s guidance for volumes of 1,060 to 1,073 MMcfe/d.
Production figures for 2014, specifically natural gas and NGL, reflect the absence of volumes due to the sale of working interests in certain of WPX’s Piceance Basin wells earlier this year.
After adjusting the volumes in previous quarters for the impact of the sale of working interests in the Piceance wells, overall third-quarter 2014 equivalent volumes would have increased 5 percent vs. a year ago and 2 percent vs. the sequential quarter.

																					
Average Daily Production	  	3Q	 	  	 	 	 	2Q	 	  	Sequential	 	
 	  	2014	 	  	2013	 	  	Change	 	 	2014	 	  	Change	 	
Natural gas (MMcf/d)	  				  				  				 				  				
Piceance Basin	  	 	542	  	  	 	603	  	  	 	-10	% 	 	 	584	  	  	 	-7	% 	
Appalachian Basin	  	 	79	  	  	 	91	  	  	 	-13	% 	 	 	88	  	  	 	-10	% 	
San Juan Basin	  	 	111	  	  	 	117	  	  	 	-5	% 	 	 	107	  	  	 	4	% 	
International	  	 	21	  	  	 	19	  	  	 	11	% 	 	 	20	  	  	 	5	% 	
Other	  	 	13	  	  	 	9	  	  	 	44	% 	 	 	12	  	  	 	8	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal (MMcf/d)	  	 	766	  	  	 	839	  	  	 	-9	% 	 	 	811	  	  	 	-6	% 	
						
Oil (Mbbl/d)	  				  				  				 				  				
Williston Basin	  	 	20.1	  	  	 	14.0	  	  	 	44	% 	 	 	18.8	  	  	 	7	% 	
San Juan Basin	  	 	3.9	  	  	 	1.1	  	  	 	255	% 	 	 	3.0	  	  	 	30	% 	
Piceance Basin	  	 	1.7	  	  	 	1.7	  	  	 	0	% 	 	 	2.0	  	  	 	-15	% 	
International	  	 	6.5	  	  	 	5.3	  	  	 	23	% 	 	 	5.2	  	  	 	25	% 	
Other	  	 	0.1	  	  	 	0.2	  	  	 	-50	% 	 	 	0.0	  	  	 	NM	  	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal (Mbbl/d)	  	 	32.3	  	  	 	22.3	  	  	 	45	% 	 	 	29.0	  	  	 	11	% 	
						
NGLs (Mbbl/d)	  				  				  				 				  				
Piceance	  	 	14.5	  	  	 	18.4	  	  	 	-21	% 	 	 	15.8	  	  	 	-8	% 	
International	  	 	0.4	  	  	 	0.5	  	  	 	-20	% 	 	 	0.4	  	  	 	0	% 	
Other	  	 	2.6	  	  	 	1.2	  	  	 	117	% 	 	 	2.1	  	  	 	24	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Subtotal (Mbbl/d)	  	 	17.5	  	  	 	20.1	  	  	 	-13	% 	 	 	18.3	  	  	 	-4	% 	
						
Total Production (MMcfe/d)	  	 	1,065	  	  	 	1,094	  	  	 	-3	% 	 	 	1,095	  	  	 	-3	% 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
NM is a percentage calculation that is not meaningful.
Consolidated natural gas production of 766 MMcf/d in third-quarter 2014 was within the range of the company’s guidance of 763 to 773 MMcf/d. Piceance Basin volumes of 542 MMcf/d accounted for 73 percent of WPX’s third-quarter domestic natural gas production. Piceance volumes were hampered by third-party gathering outages during the third quarter.
WPX’s domestic oil production continues to climb rapidly, increasing 52 percent year-over-year. Domestic oil production was driven by higher volumes in the San Juan Basin’s Gallup Play, which grew 255 percent year-over-year and 30 percent vs. the sequential quarter. Oil production also showed sizable growth in the Williston Basin, up 44 percent year-over-year.
Consolidated natural gas liquids (NGL) production of 17.5 Mbbl/d was in line with WPX’s third-quarter guidance range of 17.4 to 17.8 Mbbl/d, but lower than a year ago and sequential quarter due in part to an ethane recovery rate of 20 percent during third-quarter 2014.
Notably, oil and liquids (NGL) production accounted for nearly 26 percent of WPX’s total domestic production, up from 21 percent in third-quarter 2013. Oil volumes alone accounted for 15 percent of WPX’s overall third-quarter domestic production.

EXPENSES
WPX’s domestic operating expenses were approximately 3 percent lower in third-quarter 2014 than the same period in 2013.
WPX’s domestic lease and facility operating expenses for third-quarter 2014 were $63 million vs. $62 million in the same period in 2013.
Domestic gathering, processing and transportation charges of $82 million in third-quarter 2014 were approximately 7 percent lower compared with $88 million a year ago.
Taxes other than income for domestic operations in third-quarter 2014 were $32 million vs. $27 million a year ago, driven by higher oil volumes.
Domestic depreciation, depletion and amortization expense was $201 million in third-quarter 2014, down 9 percent from $222 million a year ago primarily due to the previously discussed lower natural gas production volumes in 2014, partially offset by the impact of increased oil production which is at a higher rate per Mcfe.
Domestic general and administrative expenses were $71 million in third-quarter 2014 vs. $64 million in the same period a year ago, primarily attributable to $8 million of charges associated with an early exit program.
Domestic exploration expense was higher at $28 million in third-quarter 2014 compared with $21 million a year ago primarily due to impairments of exploratory leasehold and well costs.
CASH AND LIQUIDITY
Net cash provided by operating activities for the first nine months of 2014 was $779 million, up 50 percent vs. $520 million for the same period a year ago.
At Sept. 30, 2014, WPX had approximately $38 million in unrestricted domestic cash and cash equivalents and $27 million in international cash. WPX’s total domestic liquidity as of Sept. 30, 2014, was approximately $834 million under the company’s previous credit facility agreement.
Subsequent to the close of the third quarter, WPX executed a new five-year, $1.5 billion senior unsecured credit facility. The new agreement enhances the company’s liquidity position by gaining full access to the total commitments under the modified covenant structure.

DEVELOPMENT ACTIVITY
For the first three quarters of 2014, WPX participated in a total of 290 gross (247 net) wells in its continuing operations in the United States, including 253 gross operated wells in the company’s Williston, San Juan and Piceance basins.
Highlights for the company’s operated wells in its three core areas are provided below. The balance of gross (net) wells is accounted for in non-operated interests, as well as WPX’s own properties in other areas such as the Appalachia Basin.
In the Williston Basin, WPX completed 39 gross (36 net) wells in the first nine months of the year, including 14 gross (14 net) wells during the third quarter. The company has five rigs deployed on its Williston acreage.
In the San Juan Basin’s Gallup oil play, WPX completed 29 gross (25 net) wells in the first nine months of the year, including 16 gross (14 net) wells during the third quarter.
WPX now owns or controls 84,000 net acres in the Gallup oil window, an increase of 68 percent vs. the sequential quarter. The company added a third rig in the play during the third quarter.
In September, WPX beat its prior best drilling time in the Gallup by 21 percent, drilling a well in 9.5 days. The well had a total depth of 10,390 feet. WPX is now averaging 12.5 days on its Gallup wells from spud to rig release, an improvement of 25 percent vs. 16.6 days per well in the third quarter a year ago.
In the Piceance Basin, WPX completed 185 gross (180 net) wells in the first nine months of the year, including 68 gross (66 net) wells in the third quarter. WPX has nine rigs deployed in the Piceance.
A newly completed Niobrara horizontal well in the Piceance produced an initial high of 14 MMcf/d at a flowing pressure of 7,200 PSI. A second vertical test well is producing 2 MMcf/d, with the majority of production coming from horizons in the Mancos formation.
TOMORROW’S WEBCAST
WPX management will discuss its third-quarter 2014 results during a webcast starting at 10 a.m. Eastern tomorrow, Nov. 5. Participants can access the event via the homepage at www.wpxenergy.com . The slides for the webcast are available for download today at the same website.
A limited number of phone lines also will be available at 877-415-3181. International callers should dial 857-244-7324. The conference identification code for both phone numbers is 53107806. A replay of the webcast will be available on WPX’s website for one year following the event.

FORM 10-Q
WPX plans to file its third-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.
UPCOMING CONFERENCE PRESENTATION
WPX CEO Rick Muncrief is scheduled to speak at the Capital One Securities annual energy conference on Thursday, Dec. 11, at approximately 10:20 a.m. Eastern. Please visit www.wpxenergy.com on the day of the event to confirm the time, see the slides and listen to the presentation.
About WPX Energy, Inc.
WPX Energy develops and operates oil and gas producing properties in North Dakota, New Mexico and Colorado. The company has a long history of innovation and stakeholder engagement, recognized through more than 40 local, state, federal and industry awards.
# # #
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)

 	  	2013	 	 	2014	 	
(Dollars in millions)	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	YTD	 	
Revenues:	  				 				 				 				 				 				 				 				 				
Product revenues:	  				 				 				 				 				 				 				 				 				
Natural gas sales	  	$	224	  	 	$	265	  	 	$	210	  	 	$	216	  	 	$	915	  	 	$	322	  	 	$	269	  	 	$	207	  	 	$	798	  	
Oil and condensate sales	  	 	139	  	 	 	151	  	 	 	183	  	 	 	176	  	 	 	649	  	 	 	175	  	 	 	223	  	 	 	240	  	 	 	638	  	
Natural gas liquid sales	  	 	54	  	 	 	58	  	 	 	57	  	 	 	61	  	 	 	230	  	 	 	61	  	 	 	55	  	 	 	54	  	 	 	170	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total product revenues	  	 	417	  	 	 	474	  	 	 	450	  	 	 	453	  	 	 	1,794	  	 	 	558	  	 	 	547	  	 	 	501	  	 	 	1,606	  	
Gas management	  	 	261	  	 	 	205	  	 	 	176	  	 	 	249	  	 	 	891	  	 	 	561	  	 	 	231	  	 	 	145	  	 	 	937	  	
Net gain (loss) on derivatives not designated as hedges	  	 	(94	) 	 	 	78	  	 	 	(15	) 	 	 	(93	) 	 	 	(124	) 	 	 	(195	) 	 	 	(17	) 	 	 	148	  	 	 	(64	) 	
Other	  	 	4	  	 	 	7	  	 	 	5	  	 	 	6	  	 	 	22	  	 	 	1	  	 	 	5	  	 	 	—  	  	 	 	6	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	588	  	 	 	764	  	 	 	616	  	 	 	615	  	 	 	2,583	  	 	 	925	  	 	 	766	  	 	 	794	  	 	 	2,485	  	
										
Costs and expenses:	  				 				 				 				 				 				 				 				 				
Lease and facility operating	  	 	63	  	 	 	63	  	 	 	70	  	 	 	68	  	 	 	264	  	 	 	68	  	 	 	67	  	 	 	73	  	 	 	208	  	
Gathering, processing and transportation	  	 	85	  	 	 	91	  	 	 	88	  	 	 	89	  	 	 	353	  	 	 	89	  	 	 	79	  	 	 	82	  	 	 	250	  	
Taxes other than income	  	 	31	  	 	 	31	  	 	 	33	  	 	 	31	  	 	 	126	  	 	 	41	  	 	 	40	  	 	 	40	  	 	 	121	  	
Gas management, including charges for unutilized pipeline capacity	  	 	243	  	 	 	222	  	 	 	201	  	 	 	265	  	 	 	931	  	 	 	391	  	 	 	233	  	 	 	164	  	 	 	788	  	
Exploration	  	 	18	  	 	 	20	  	 	 	21	  	 	 	371	  	 	 	430	  	 	 	15	  	 	 	57	  	 	 	29	  	 	 	101	  	
Depreciation, depletion and amortization	  	 	217	  	 	 	215	  	 	 	230	  	 	 	230	  	 	 	892	  	 	 	203	  	 	 	211	  	 	 	213	  	 	 	627	  	
Impairment of producing properties and costs of acquired unproved reserves	  	 	—  	  	 	 	—  	  	 	 	19	  	 	 	844	  	 	 	863	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Loss on sale of working interests in the Piceance Basin	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	195	  	 	 	1	  	 	 	196	  	
General and administrative	  	 	70	  	 	 	72	  	 	 	67	  	 	 	74	  	 	 	283	  	 	 	71	  	 	 	73	  	 	 	75	  	 	 	219	  	
Other-net	  	 	6	  	 	 	3	  	 	 	1	  	 	 	2	  	 	 	12	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	9	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total costs and expenses	  	 	733	  	 	 	717	  	 	 	730	  	 	 	1,974	  	 	 	4,154	  	 	 	881	  	 	 	958	  	 	 	680	  	 	 	2,519	  	
										
Operating income (loss)	  	 	(145	) 	 	 	47	  	 	 	(114	) 	 	 	(1,359	) 	 	 	(1,571	) 	 	 	44	  	 	 	(192	) 	 	 	114	  	 	 	(34	) 	
										
Interest expense	  	 	(26	) 	 	 	(28	) 	 	 	(28	) 	 	 	(26	) 	 	 	(108	) 	 	 	(29	) 	 	 	(28	) 	 	 	(31	) 	 	 	(88	) 	
Interest capitalized	  	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	1	  	
Investment income, impairment of equity method investment and other	  	 	5	  	 	 	8	  	 	 	4	  	 	 	(16	) 	 	 	1	  	 	 	2	  	 	 	5	  	 	 	5	  	 	 	12	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	  	$	(166	) 	 	$	27	  	 	$	(137	) 	 	$	(1,401	) 	 	$	(1,677	) 	 	$	17	  	 	$	(215	) 	 	$	89	  	 	$	(109	) 	
Provision (benefit) for income taxes	  	 	(59	) 	 	 	9	  	 	 	(29	) 	 	 	(514	) 	 	 	(593	) 	 	 	15	  	 	 	(74	) 	 	 	28	  	 	 	(31	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	  	$	(107	) 	 	$	18	  	 	$	(108	) 	 	$	(887	) 	 	$	(1,084	) 	 	$	2	  	 	$	(141	) 	 	$	61	  	 	$	(78	) 	
Income (loss) from discontinued operations	  	 	(6	) 	 	 	4	  	 	 	(8	) 	 	 	(97	) 	 	 	(107	) 	 	 	17	  	 	 	8	  	 	 	5	  	 	 	30	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	(113	) 	 	$	22	  	 	$	(116	) 	 	$	(984	) 	 	$	(1,191	) 	 	$	19	  	 	$	(133	) 	 	$	66	  	 	$	(48	) 	
Less: Net income (loss) attributable to noncontrolling interests	  	 	3	  	 	 	4	  	 	 	(2	) 	 	 	(11	) 	 	 	(6	) 	 	 	1	  	 	 	2	  	 	 	4	  	 	 	7	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to WPX Energy, Inc.	  	$	(116	) 	 	$	18	  	 	$	(114	) 	 	$	(973	) 	 	$	(1,185	) 	 	$	18	  	 	$	(135	) 	 	$	62	  	 	$	(55	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDAX	  				 				 				 				 				 				 				 				 				
Reconciliation to net income (loss):	  				 				 				 				 				 				 				 				 				
Net income (loss)	  	$	(113	) 	 	$	22	  	 	$	(116	) 	 	$	(984	) 	 	$	(1,191	) 	 	$	19	  	 	$	(133	) 	 	$	66	  	 	$	(48	) 	
Interest expense	  	 	26	  	 	 	28	  	 	 	28	  	 	 	26	  	 	 	108	  	 	 	29	  	 	 	28	  	 	 	31	  	 	 	88	  	
Provision (benefit) for income taxes	  	 	(59	) 	 	 	9	  	 	 	(29	) 	 	 	(514	) 	 	 	(593	) 	 	 	15	  	 	 	(74	) 	 	 	28	  	 	 	(31	) 	

Depreciation, depletion and amortization	  	 	217	  	 	 	215	  	 	 	230	  	 	 	230	  	 	 	892	  	 	 	203	  	 	 	211	  	 	 	213	  	 	 	627	  	
Exploration expenses	  	 	18	  	 	 	20	  	 	 	21	  	 	 	371	  	 	 	430	  	 	 	15	  	 	 	57	  	 	 	29	  	 	 	101	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDAX	  	 	89	  	 	 	294	  	 	 	134	  	 	 	(871	) 	 	 	(354	) 	 	 	281	  	 	 	89	  	 	 	367	  	 	 	737	  	
Impairment of producing properties, costs of acquired unproved reserves and equity investments	  	 	—  	  	 	 	—  	  	 	 	19	  	 	 	864	  	 	 	883	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Loss on sale of working interests in the Piceance Basin	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	195	  	 	 	1	  	 	 	196	  	
Net (gain) loss on derivatives not designated as hedges	  	 	94	  	 	 	(78	) 	 	 	15	  	 	 	93	  	 	 	124	  	 	 	195	  	 	 	17	  	 	 	(148	) 	 	 	64	  	
Net cash received (paid) related to settlement of derivatives not designated as hedges	  	 	9	  	 	 	(20	) 	 	 	(2	) 	 	 	(4	) 	 	 	(17	) 	 	 	(168	) 	 	 	(17	) 	 	 	15	  	 	 	(170	) 	
(Income) loss from discontinued operations	  	 	6	  	 	 	(4	) 	 	 	8	  	 	 	97	  	 	 	107	  	 	 	(17	) 	 	 	(8	) 	 	 	(5	) 	 	 	(30	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDAX	  	$	198	  	 	$	192	  	 	$	174	  	 	$	179	  	 	$	743	  	 	$	291	  	 	$	276	  	 	$	230	  	 	$	797	  	

WPX Energy, Inc.
Domestic Segment
(UNAUDITED)

 	 	2013	 	 	2014	 	
(Dollars in millions)	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	YTD	 	
Revenues:	 				 				 				 				 				 				 				 				 				
Product revenues:	 				 				 				 				 				 				 				 				 				
Natural gas sales	 	$	220	  	 	$	259	  	 	$	206	  	 	$	211	  	 	$	896	  	 	$	317	  	 	$	262	  	 	$	201	  	 	$	780	  	
Oil and condensate sales	 	 	111	  	 	 	121	  	 	 	154	  	 	 	148	  	 	 	534	  	 	 	149	  	 	 	194	  	 	 	199	  	 	 	542	  	
Natural gas liquid sales	 	 	53	  	 	 	58	  	 	 	57	  	 	 	60	  	 	 	228	  	 	 	61	  	 	 	54	  	 	 	53	  	 	 	168	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total product revenues	 	 	384	  	 	 	438	  	 	 	417	  	 	 	419	  	 	 	1,658	  	 	 	527	  	 	 	510	  	 	 	453	  	 	 	1,490	  	
Gas management	 	 	261	  	 	 	205	  	 	 	176	  	 	 	249	  	 	 	891	  	 	 	561	  	 	 	231	  	 	 	145	  	 	 	937	  	
Net gain (loss) on derivatives not designated as hedges	 	 	(94	) 	 	 	78	  	 	 	(15	) 	 	 	(93	) 	 	 	(124	) 	 	 	(195	) 	 	 	(17	) 	 	 	148	  	 	 	(64	) 	
Other	 	 	1	  	 	 	1	  	 	 	3	  	 	 	1	  	 	 	6	  	 	 	1	  	 	 	3	  	 	 	1	  	 	 	5	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	552	  	 	 	722	  	 	 	581	  	 	 	576	  	 	 	2,431	  	 	 	894	  	 	 	727	  	 	 	747	  	 	 	2,368	  	
										
Costs and expenses:	 				 				 				 				 				 				 				 				 				
Lease and facility operating	 	 	55	  	 	 	53	  	 	 	62	  	 	 	57	  	 	 	227	  	 	 	60	  	 	 	59	  	 	 	63	  	 	 	182	  	
Gathering, processing and transportation	 	 	84	  	 	 	90	  	 	 	88	  	 	 	88	  	 	 	350	  	 	 	89	  	 	 	78	  	 	 	82	  	 	 	249	  	
Taxes other than income	 	 	25	  	 	 	25	  	 	 	27	  	 	 	25	  	 	 	102	  	 	 	35	  	 	 	33	  	 	 	32	  	 	 	100	  	
Gas management, including charges for unutilized pipeline capacity	 	 	243	  	 	 	222	  	 	 	201	  	 	 	265	  	 	 	931	  	 	 	391	  	 	 	233	  	 	 	164	  	 	 	788	  	
Exploration	 	 	17	  	 	 	17	  	 	 	21	  	 	 	368	  	 	 	423	  	 	 	15	  	 	 	54	  	 	 	28	  	 	 	97	  	
Depreciation, depletion and amortization	 	 	210	  	 	 	205	  	 	 	222	  	 	 	221	  	 	 	858	  	 	 	193	  	 	 	202	  	 	 	201	  	 	 	596	  	
Impairment of producing properties and costs of acquired unproved reserves	 	 	—  	  	 	 	—  	  	 	 	19	  	 	 	841	  	 	 	860	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Loss on sale of working interests in the Piceance Basin	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	195	  	 	 	1	  	 	 	196	  	
General and administrative	 	 	67	  	 	 	67	  	 	 	64	  	 	 	71	  	 	 	269	  	 	 	67	  	 	 	70	  	 	 	71	  	 	 	208	  	
Other-net	 	 	5	  	 	 	7	  	 	 	(2	) 	 	 	2	  	 	 	12	  	 	 	2	  	 	 	1	  	 	 	3	  	 	 	6	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total costs and expenses	 	 	706	  	 	 	686	  	 	 	702	  	 	 	1,938	  	 	 	4,032	  	 	 	852	  	 	 	925	  	 	 	645	  	 	 	2,422	  	
										
Operating income (loss)	 	 	(154	) 	 	 	36	  	 	 	(121	) 	 	 	(1,362	) 	 	 	(1,601	) 	 	 	42	  	 	 	(198	) 	 	 	102	  	 	 	(54	) 	
										
Interest expense	 	 	(26	) 	 	 	(28	) 	 	 	(28	) 	 	 	(26	) 	 	 	(108	) 	 	 	(29	) 	 	 	(28	) 	 	 	(31	) 	 	 	(88	) 	
Interest capitalized	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	1	  	
Investment income, impairment of equity method investment and other	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	(21	) 	 	 	(20	) 	 	 	—  	  	 	 	—  	  	 	 	(1	) 	 	 	(1	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	 	$	(180	) 	 	$	9	  	 	$	(148	) 	 	$	(1,409	) 	 	$	(1,728	) 	 	$	13	  	 	$	(226	) 	 	$	71	  	 	$	(142	) 	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Summary of Production Volumes (1)	 				 				 				 				 				 				 				 				 				
Natural gas (MMcf)	 	 	73,991	  	 	 	73,774	  	 	 	75,497	  	 	 	72,672	  	 	 	295,934	  	 	 	71,531	  	 	 	71,972	  	 	 	68,614	  	 	 	212,117	  	
Oil (MBbls)	 	 	1,240	  	 	 	1,372	  	 	 	1,571	  	 	 	1,737	  	 	 	5,919	  	 	 	1,737	  	 	 	2,159	  	 	 	2,373	  	 	 	6,269	  	
Natural gas liquids (MBbls)	 	 	1,904	  	 	 	1,893	  	 	 	1,810	  	 	 	1,808	  	 	 	7,415	  	 	 	1,587	  	 	 	1,625	  	 	 	1,574	  	 	 	4,786	  	
Combined equivalent volumes (MMcfe)  (2)	 	 	92,856	  	 	 	93,361	  	 	 	95,782	  	 	 	93,941	  	 	 	375,940	  	 	 	91,475	  	 	 	94,680	  	 	 	92,295	  	 	 	278,450	  	
	
(1)     Excludes our Powder River Basin operations, which were classidfied as discontinued operations.	        	
(2)     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 (1)	 				 				 				 				 				 				 				 				 				
Natural gas (per Mcf)	 	$	2.96	  	 	$	3.53	  	 	$	2.75	  	 	$	2.88	  	 	$	3.03	  	 	$	4.42	  	 	$	3.66	  	 	$	2.92	  	 	$	3.68	  	
Oil (per barrel)	 	$	89.78	  	 	$	87.76	  	 	$	97.94	  	 	$	85.47	  	 	$	90.22	  	 	$	86.24	  	 	$	89.24	  	 	$	84.11	  	 	$	86.47	  	
Natural gas liquids (per barrel)	 	$	28.26	  	 	$	30.25	  	 	$	31.20	  	 	$	33.33	  	 	$	30.72	  	 	$	38.27	  	 	$	33.58	  	 	$	33.64	  	 	$	35.16	  	
	
(1)     Excludes our Powder River Basin operations, which were classidfied as discontinued operations.	        	
										
Expenses per Mcfe (1)	 				 				 				 				 				 				 				 				 				
Lease and facility operating	 	$	0.59	  	 	$	0.57	  	 	$	0.64	  	 	$	0.62	  	 	$	0.60	  	 	$	0.66	  	 	$	0.63	  	 	$	0.68	  	 	$	0.65	  	
Gathering, processing and transportation	 	$	0.91	  	 	$	0.96	  	 	$	0.90	  	 	$	0.95	  	 	$	0.93	  	 	$	0.97	  	 	$	0.83	  	 	$	0.89	  	 	$	0.89	  	
Taxes other than income	 	$	0.27	  	 	$	0.27	  	 	$	0.28	  	 	$	0.27	  	 	$	0.27	  	 	$	0.38	  	 	$	0.35	  	 	$	0.35	  	 	$	0.36	  	
Depreciation, depletion and amortization	 	$	2.25	  	 	$	2.21	  	 	$	2.31	  	 	$	2.35	  	 	$	2.28	  	 	$	2.11	  	 	$	2.13	  	 	$	2.18	  	 	$	2.14	  	
General and administrative	 	$	0.72	  	 	$	0.73	  	 	$	0.66	  	 	$	0.75	  	 	$	0.71	  	 	$	0.74	  	 	$	0.73	  	 	$	0.77	  	 	$	0.75	  	
	
(1)     Excludes our Powder River Basin operations, which were classidfied as discontinued operations.	        	
										
Unutilized pipeline capacity	 				 				 				 				 				 				 				 				 				
Total unutilized pipeline capacity in gas management expense	 	$	13	  	 	$	14	  	 	$	17	  	 	$	17	  	 	$	61	  	 	$	16	  	 	$	12	  	 	$	16	  	 	$	44	  	

WPX Energy, Inc.
International Segment
(UNAUDITED)

 	 	2013	 	 	2014	 	
(Dollars in millions)	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	YTD	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	YTD	 	
Revenues:	 				 				 				 				 				 				 				 				 				
Product revenues:	 				 				 				 				 				 				 				 				 				
Natural gas sales	 	$	4	  	 	$	6	  	 	$	4	  	 	$	5	  	 	$	19	  	 	$	5	  	 	$	7	  	 	$	6	  	 	$	18	  	
Oil and condensate sales	 	 	28	  	 	 	30	  	 	 	29	  	 	 	28	  	 	 	115	  	 	 	26	  	 	 	29	  	 	 	41	  	 	 	96	  	
Natural gas liquid sales	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	2	  	 	 	—  	  	 	 	1	  	 	 	1	  	 	 	2	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total product revenues	 	 	33	  	 	 	36	  	 	 	33	  	 	 	34	  	 	 	136	  	 	 	31	  	 	 	37	  	 	 	48	  	 	 	116	  	
Gas management	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Net gain (loss) on derivatives not designated as hedges	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Other	 	 	3	  	 	 	6	  	 	 	2	  	 	 	5	  	 	 	16	  	 	 	—  	  	 	 	2	  	 	 	(1	) 	 	 	1	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	36	  	 	 	42	  	 	 	35	  	 	 	39	  	 	 	152	  	 	 	31	  	 	 	39	  	 	 	47	  	 	 	117	  	
										
Costs and expenses:	 				 				 				 				 				 				 				 				 				
Lease and facility operating	 	 	8	  	 	 	10	  	 	 	8	  	 	 	11	  	 	 	37	  	 	 	8	  	 	 	8	  	 	 	10	  	 	 	26	  	
Gathering, processing and transportation	 	 	1	  	 	 	1	  	 	 	—  	  	 	 	1	  	 	 	3	  	 	 	—  	  	 	 	1	  	 	 	—  	  	 	 	1	  	
Taxes other than income	 	 	6	  	 	 	6	  	 	 	6	  	 	 	6	  	 	 	24	  	 	 	6	  	 	 	7	  	 	 	8	  	 	 	21	  	
Gas management, including charges for unutilized pipeline capacity	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Exploration	 	 	1	  	 	 	3	  	 	 	—  	  	 	 	3	  	 	 	7	  	 	 	—  	  	 	 	3	  	 	 	1	  	 	 	4	  	
Depreciation, depletion and amortization	 	 	7	  	 	 	10	  	 	 	8	  	 	 	9	  	 	 	34	  	 	 	10	  	 	 	9	  	 	 	12	  	 	 	31	  	
Impairment of producing properties	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	3	  	 	 	3	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Loss on sale of working interests in the Piceance Basin	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
General and administrative	 	 	3	  	 	 	5	  	 	 	3	  	 	 	3	  	 	 	14	  	 	 	4	  	 	 	3	  	 	 	4	  	 	 	11	  	
Other-net	 	 	1	  	 	 	(4	) 	 	 	3	  	 	 	—  	  	 	 	—  	  	 	 	1	  	 	 	2	  	 	 	—  	  	 	 	3	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total costs and expenses	 	 	27	  	 	 	31	  	 	 	28	  	 	 	36	  	 	 	122	  	 	 	29	  	 	 	33	  	 	 	35	  	 	 	97	  	
										
Operating income (loss)	 	 	9	  	 	 	11	  	 	 	7	  	 	 	3	  	 	 	30	  	 	 	2	  	 	 	6	  	 	 	12	  	 	 	20	  	
										
Interest expense	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Interest capitalized	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Investment income and other	 	 	5	  	 	 	7	  	 	 	4	  	 	 	5	  	 	 	21	  	 	 	2	  	 	 	5	  	 	 	6	  	 	 	13	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	 	$	14	  	 	$	18	  	 	$	11	  	 	$	8	  	 	$	51	  	 	$	4	  	 	$	11	  	 	$	18	  	 	$	33	  	
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Summary of Net Production Volumes (1)	 				 				 				 				 				 				 				 				 				
Natural gas (MMcf)	 	 	1,485	  	 	 	1,620	  	 	 	1,707	  	 	 	1,723	  	 	 	6,534	  	 	 	1,723	  	 	 	1,838	  	 	 	1,898	  	 	 	5,459	  	
Oil (MBbls)	 	 	506	  	 	 	553	  	 	 	484	  	 	 	489	  	 	 	2,032	  	 	 	466	  	 	 	475	  	 	 	598	  	 	 	1,539	  	
Natural gas liquids (MBbls)	 	 	42	  	 	 	44	  	 	 	42	  	 	 	40	  	 	 	167	  	 	 	41	  	 	 	40	  	 	 	40	  	 	 	121	  	
Combined equivalent volumes (MMcfe) (2)	 	 	4,775	  	 	 	5,202	  	 	 	4,862	  	 	 	4,894	  	 	 	19,733	  	 	 	4,766	  	 	 	4,927	  	 	 	5,728	  	 	 	15,422	  	
 
(1)	Reflects approximately 69 percent of Apco’s production (which corresponds to our ownership interest in Apco) and other minor directly held interests.	
(2)	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.	

WPX Energy, Inc.
Reconciliation- Adjusted Income (Loss) from Continuing Operations
(UNAUDITED)

 	  	2013	 	 	2014	 	
(Dollars in millions, except per share amounts)	  	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	YTD	 	
Income (loss) from continuing operations attributable to WPX Energy, Inc. available to common stockholders	  	$	(110	) 	 	$	14	  	 	$	(106	) 	 	$	(876	) 	 	$	(1,078	) 	 	$	1	  	 	$	(143	) 	 	$	57	  	 	$	(85	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations - diluted earnings per share	  	$	(0.55	) 	 	$	0.07	  	 	$	(0.53	) 	 	$	(4.36	) 	 	$	(5.38	) 	 	$	0.01	  	 	$	(0.71	) 	 	$	0.28	  	 	$	(0.42	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pre-tax adjustments:	  				 				 				 				 				 				 				 				 				
Impairment of producing properties, costs of acquired unproved reserves, leasehold and equity method investment (1)	  	$	—  	  	 	$	—  	  	 	$	19	  	 	$	1,169	  	 	$	1,188	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Impairments- exploratory related	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	40	  	 	$	22	  	 	$	62	  	
Loss on sale of working interests in the Piceance Basin	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	195	  	 	$	1	  	 	$	196	  	
Expense related to Early Exit Program	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	2	  	 	$	8	  	 	$	10	  	
Early rig release expenses	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	6	  	 	$	6	  	
Costs related to chief executive officer separation	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	4	  	 	$	4	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Buyout of transportation agreement	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	9	  	 	$	9	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Unrealized MTM (gain) loss	  	$	103	  	 	$	(98	) 	 	$	13	  	 	$	89	  	 	$	107	  	 	$	27	  	 	$	—  	  	 	$	(133	) 	 	$	(106	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total pre-tax adjustments	  	$	103	  	 	$	(98	) 	 	$	32	  	 	$	1,271	  	 	$	1,308	  	 	$	27	  	 	$	237	  	 	$	(96	) 	 	$	168	  	
Less tax effect for above items	  	$	(38	) 	 	$	36	  	 	$	(12	) 	 	$	(463	) 	 	$	(477	) 	 	$	(10	) 	 	$	(87	) 	 	$	35	  	 	$	(62	) 	
Impact of new Argentine capital tax law (1)	  	$	—  	  	 	$	—  	  	 	$	6	  	 	$	—  	  	 	$	6	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Impact of new state tax law in New York (net of federal benefit)	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	9	  	 	$	—  	  	 	$	—  	  	 	$	9	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total adjustments, after-tax	  	$	65	  	 	$	(62	) 	 	$	26	  	 	$	808	  	 	$	837	  	 	$	26	  	 	$	150	  	 	$	(61	) 	 	$	115	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted income (loss) from continuing operations available to common stockholders	  	$	(45	) 	 	$	(48	) 	 	$	(80	) 	 	$	(68	) 	 	$	(241	) 	 	$	27	  	 	$	7	  	 	$	(4	) 	 	$	30	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted diluted earnings (loss) per common share	  	$	(0.22	) 	 	$	(0.24	) 	 	$	(0.39	) 	 	$	(0.35	) 	 	$	(1.20	) 	 	$	0.13	  	 	$	0.03	  	 	$	(0.02	) 	 	$	0.14	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted-average shares (millions)	  	 	199.9	  	 	 	203.8	  	 	 	200.7	  	 	 	200.9	  	 	 	200.4	  	 	 	205.2	  	 	 	202.7	  	 	 	207.5	  	 	 	202.5	  	
 
(1)	These items are presented net of amounts attributable to noncontrolling interests.	

WPX Energy, Inc.
Consolidated Statement of Operations
(Unaudited)

 	  	Three months ended September 30,	 	 	Nine months ended September 30,	 	
 	  	2014	 	 	2013	 	 	2014	 	 	2013	 	
 	  	(Millions, except per-share amounts)	 	
Revenues:	  				 				 				 				
Product revenues:	  				 				 				 				
Natural gas sales	  	$	207	  	 	$	210	  	 	$	798	  	 	$	699	  	
Oil and condensate sales	  	 	240	  	 	 	183	  	 	 	638	  	 	 	473	  	
Natural gas liquid sales	  	 	54	  	 	 	57	  	 	 	170	  	 	 	169	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total product revenues	  	 	501	  	 	 	450	  	 	 	1,606	  	 	 	1,341	  	
Gas management	  	 	145	  	 	 	176	  	 	 	937	  	 	 	642	  	
Net gain (loss) on derivatives not designated as hedges	  	 	148	  	 	 	(15	) 	 	 	(64	) 	 	 	(31	) 	
Other	  	 	—  	  	 	 	5	  	 	 	6	  	 	 	16	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	  	 	794	  	 	 	616	  	 	 	2,485	  	 	 	1,968	  	
Costs and expenses:	  				 				 				 				
Lease and facility operating	  	 	73	  	 	 	70	  	 	 	208	  	 	 	196	  	
Gathering, processing and transportation	  	 	82	  	 	 	88	  	 	 	250	  	 	 	264	  	
Taxes other than income	  	 	40	  	 	 	33	  	 	 	121	  	 	 	95	  	
Gas management, including charges for unutilized pipeline capacity	  	 	164	  	 	 	201	  	 	 	788	  	 	 	666	  	
Exploration	  	 	29	  	 	 	21	  	 	 	101	  	 	 	59	  	
Depreciation, depletion and amortization	  	 	213	  	 	 	230	  	 	 	627	  	 	 	662	  	
Impairment of producing properties and costs of acquired unproved reserves	  	 	—  	  	 	 	19	  	 	 	—  	  	 	 	19	  	
Loss on sale of working interests in Piceance Basin	  	 	1	  	 	 	—  	  	 	 	196	  	 	 	—  	  	
General and administrative	  	 	75	  	 	 	67	  	 	 	219	  	 	 	209	  	
Other - net	  	 	3	  	 	 	1	  	 	 	9	  	 	 	10	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total costs and expenses	  	 	680	  	 	 	730	  	 	 	2,519	  	 	 	2,180	  	
					
Operating income (loss)	  	 	114	  	 	 	(114	) 	 	 	(34	) 	 	 	(212	) 	
Interest expense	  	 	(31	) 	 	 	(28	) 	 	 	(88	) 	 	 	(82	) 	
Interest capitalized	  	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	
Investment income and other	  	 	5	  	 	 	4	  	 	 	12	  	 	 	17	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	  	 	89	  	 	 	(137	) 	 	 	(109	) 	 	 	(276	) 	
Provision (benefit) for income taxes	  	 	28	  	 	 	(29	) 	 	 	(31	) 	 	 	(79	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) from continuing operations	  	 	61	  	 	 	(108	) 	 	 	(78	) 	 	 	(197	) 	
Income (loss) from discontinued operations	  	 	5	  	 	 	(8	) 	 	 	30	  	 	 	(10	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	 	66	  	 	 	(116	) 	 	 	(48	) 	 	 	(207	) 	
Less: Net income (loss) attributable to noncontrolling interests	  	 	4	  	 	 	(2	) 	 	 	7	  	 	 	5	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to WPX Energy, Inc.	  	$	62	  	 	$	(114	) 	 	$	(55	) 	 	$	(212	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Amounts attributable to WPX Energy, Inc.:	  				 				 				 				
Basic Earnings (loss) per common share:	  				 				 				 				
Income (loss) from continuing operations	  	$	0.28	  	 	$	(0.53	) 	 	$	(0.42	) 	 	$	(1.01	) 	
Income (loss) from discontinued operations	  	 	0.02	  	 	 	(0.04	) 	 	 	0.15	  	 	 	(0.05	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	0.30	  	 	$	(0.57	) 	 	$	(0.27	) 	 	$	(1.06	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic weighted-average shares (millions)	  	 	203.3	  	 	 	200.7	  	 	 	202.5	  	 	 	200.3	  	
					
Diluted Earnings (loss) per common share:	  				 				 				 				
Income (loss) from continuing operations	  	$	0.28	  	 	$	(0.53	) 	 	$	(0.42	) 	 	$	(1.01	) 	
Income (loss) from discontinued operations	  	 	0.02	  	 	 	(0.04	) 	 	 	0.15	  	 	 	(0.05	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	  	$	0.30	  	 	$	(0.57	) 	 	$	(0.27	) 	 	$	(1.06	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted-average shares (millions)	  	 	207.5	  	 	 	200.7	  	 	 	202.5	  	 	 	200.3	  	

WPX Energy, Inc.
Consolidated Balance Sheet
(Unaudited)

 	  	September 30,
2014	 	 	December 31,
2013	 	
 	  	(Millions)	 	
ASSETS	  				
Current assets:	  				 				
Cash and cash equivalents	  	$	65	  	 	$	99	  	
Accounts receivable, net of allowance of $6 million at September 30, 2014 and $7 million at December 31, 2013	  	 	465	  	 	 	536	  	
Deferred income taxes	  	 	31	  	 	 	49	  	
Derivative assets	  	 	107	  	 	 	50	  	
Inventories	  	 	70	  	 	 	71	  	
Margin deposits	  	 	52	  	 	 	71	  	
Assets classified as held for sale	  	 	184	  	 	 	1	  	
Other	  	 	31	  	 	 	45	  	
	  	 	 	 	 	 	 	 	
Total current assets	  	 	1,005	  	 	 	922	  	
Investments	  	 	135	  	 	 	129	  	
Properties and equipment (successful efforts method of accounting)	  	 	11,993	  	 	 	12,519	  	
Less: Accumulated depreciation, depletion and amortization	  	 	(4,956	) 	 	 	(5,445	) 	
	  	 	 	 	 	 	 	 	
Properties and equipment, net	  	 	7,037	  	 	 	7,074	  	
Derivative assets	  	 	22	  	 	 	7	  	
Other noncurrent assets	  	 	45	  	 	 	297	  	
	  	 	 	 	 	 	 	 	
Total assets	  	$	8,244	  	 	$	8,429	  	
	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  				 				
Current liabilities:	  				 				
Accounts payable	  	$	699	  	 	$	652	  	
Accrued and other current liabilities	  	 	175	  	 	 	187	  	
Liabilities associated with assets held for sale	  	 	50	  	 	 	3	  	
Customer margin deposits payable	  	 	14	  	 	 	55	  	
Deferred income taxes	  	 	1	  	 	 	—  	  	
Derivative liabilities	  	 	72	  	 	 	110	  	
	  	 	 	 	 	 	 	 	
Total current liabilities	  	 	1,011	  	 	 	1,007	  	
Deferred income taxes	  	 	713	  	 	 	788	  	
Long-term debt	  	 	2,047	  	 	 	1,916	  	
Derivative liabilities	  	 	15	  	 	 	12	  	
Asset retirement obligations	  	 	199	  	 	 	310	  	
Other noncurrent liabilities	  	 	57	  	 	 	186	  	
			
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; 203.4 million shares issued at September 30, 2014 and 201 million shares issued at December 31, 2013)	  	 	2	  	 	 	2	  	
Additional paid-in-capital	  	 	5,556	  	 	 	5,516	  	
Accumulated deficit	  	 	(1,463	) 	 	 	(1,408	) 	
Accumulated other comprehensive income (loss)	  	 	(1	) 	 	 	(1	) 	
	  	 	 	 	 	 	 	 	
Total stockholders’ equity	  	 	4,094	  	 	 	4,109	  	
Noncontrolling interests in consolidated subsidiaries	  	 	108	  	 	 	101	  	
	  	 	 	 	 	 	 	 	
Total equity	  	 	4,202	  	 	 	4,210	  	
	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	8,244	  	 	$	8,429	  	

WPX Energy, Inc.
Consolidated Statement of Cash Flows
(Unaudited)

 	  	Nine months ended September 30,	 	
 	  	2014	 	 	2013	 	
 	  	(Millions)	 	
Operating Activities	  				 				
Net income (loss)	  	$	(48	) 	 	$	(207	) 	
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	  				 				
Depreciation, depletion and amortization	  	 	638	  	 	 	699	  	
Deferred income tax provision (benefit)	  	 	(55	) 	 	 	(67	) 	
Provision for impairment of properties and equipment (including certain exploration expenses)	  	 	95	  	 	 	64	  	
Amortization of stock-based awards	  	 	26	  	 	 	24	  	
(Gain) loss on sale of assets	  	 	195	  	 	 	(5	) 	
Cash provided (used) by operating assets and liabilities:	  				 				
Accounts receivable	  	 	71	  	 	 	55	  	
Inventories	  	 	1	  	 	 	(5	) 	
Margin deposits and customer margin deposits payable	  	 	(22	) 	 	 	(2	) 	
Other current assets	  	 	16	  	 	 	(11	) 	
Accounts payable	  	 	(15	) 	 	 	(5	) 	
Accrued and other current liabilities	  	 	(22	) 	 	 	(32	) 	
Changes in current and noncurrent derivative assets and liabilities	  	 	(106	) 	 	 	18	  	
Other, including changes in other noncurrent assets and liabilities	  	 	5	  	 	 	(6	) 	
	  	 	 	 	 	 	 	 	
Net cash provided by operating activities	  	 	779	  	 	 	520	  	
	  	 	 	 	 	 	 	 	
Investing Activities	  				 				
Capital expenditures (a)	  	 	(1,325	) 	 	 	(843	) 	
Proceeds from sales of assets (b)	  	 	389	  	 	 	10	  	
Other	  	 	(3	) 	 	 	(3	) 	
	  	 	 	 	 	 	 	 	
Net cash used in investing activities	  	 	(939	) 	 	 	(836	) 	
	  	 	 	 	 	 	 	 	
Financing Activities	  				 				
Proceeds from common stock	  	 	15	  	 	 	4	  	
Proceeds from long-term debt	  	 	500	  	 	 	—  	  	
Borrowings on credit facility	  	 	1,451	  	 	 	605	  	
Payments on credit facility	  	 	(1,816	) 	 	 	(335	) 	
Payments for debt issuance costs	  	 	(6	) 	 	 	—  	  	
Other	  	 	(12	) 	 	 	(1	) 	
	  	 	 	 	 	 	 	 	
Net cash provided by financing activities	  	 	132	  	 	 	273	  	
	  	 	 	 	 	 	 	 	
Net increase (decrease) in cash and cash equivalents	  	 	(28	) 	 	 	(43	) 	
Effect of exchange rate changes on cash and cash equivalents	  	 	(6	) 	 	 	(2	) 	
Cash and cash equivalents at beginning of period	  	 	99	  	 	 	153	  	
	  	 	 	 	 	 	 	 	
Cash and cash equivalents at end of period	  	$	65	  	 	$	108	  	

(a)    Increase to properties and equipment	  	$	(1,389	) 	 	$	(864	) 	
Changes in related accounts payable and accounts receivable	  	 	64	  	 	 	21	  	
	  	 	 	 	 	 	 	 	
Capital expenditures	  	$	(1,325	) 	 	$	(843	) 	
	  	 	 	 	 	 	 	 	
(b)    Proceeds in 2014 primarily relate to the sale of a portion of our working interests in the Piceance Basin and are subject to post-closing adjustments.