A lot has changed since the closing of WPX Energy Inc.’s acquisition of Felix Energy in March. However, President and COO Clay Gaspar said, despite the unforeseen plunge in oil prices, the company had already made preparations.
“We didn’t see 2020 coming or manifesting the way it has, like anyone else, but we know we’re in a cyclical business,” Gaspar told Hart Energy’s Jessica Morales. “So, we did a few proactive things ahead of 2020 as a matter of regular course of how we run our business. We were very aggressive hedgers, we took care of our balance sheet, we thought about our own liquidity and made sure that whenever the storm clouds brewed for whatever reason that we were going to be protected.”
With rig counts changing so much in 2020, Gaspar says WPX Energy has been transparent about what's to come.
“We will be running seven rigs in the Permian Basin through most of the balance of the year, and then we’re going to be dropping from two rigs to one rig in the Wiliston Basin sometime later this summer,” he said. “Our completion crews are starting back up. So, we’ll see some acceleration or some activity, production benefits related to them.”
Clay Gaspar will be a keynote speaker at Hart Energy's combined virtual DUG Permian Basin and DUG Eagle Ford conference in September. Registration is now open.
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Energean, which is focused in the Mediterranean, will sell Edison E&P’s U.K. and Norwegian units for $250 million, with additional cash contingent consideration of up to $30 million.
The company said, however, that the industry’s recent proposal to make temporary adjustments to tax regulations could boost cash flow and increase activity.
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