Oil Price and WPX Energy Shares Rebound as President Trump Tweets He Expects Russia and Saudi Arabia to Reach Deal
Shares of WPX Energy traded 25% higher after President Trump tweeted that he expected a deal between Russia and Saudi Arabia to scale back oil production.
Today, just about every firm in the oil industry received a giant boost after President Trump tweeted that he expected Russia and Saudi Arabia to come to terms to cut oil production. One firm that appeared to lead the pack following the rebound in oil prices was WPX Energy Inc. (WPX:NYSE), a large independent oil and natural gas exploration and production company based in Tulsa, Oklahoma.
The news of the potential production cuts sent West Texas Intermediate (WTI) May price futures up 20% to $24.54/bbl at present, and June is around $27. This is widely believed to be a great benefit for oil producers and service companies globally as the industry has been facing both supply and demand shocks in the last several months. The news is still quite fluid and the WTI prices are still far below the $30-$35/bbl levels most of the U.S. oil firms are looking for in order to stabilize their operations.
WPX Energy is an independent oil and natural gas exploration and production company headquartered in Tulsa, Okla., that focuses on exploiting, developing and growing its oil positions in the Delaware (Permian area sub-basin) and San Juan basins in Texas and New Mexico and the Williston Basin in North Dakota. The company operates several hundred wells in the Delaware basin and also owns interests in a large number of wells operated there by others. The firm additionally operates many wells in the Williston Basin and also owns interest in numerous wells operated by others there.
WPX Energy began the day with a market capitalization of around $1.5 billion with approximately 559.4 million shares outstanding and a short interest of about 8.3%. WPX shares opened almost 9% higher today at $2.99 (+$0.24, +8.73%) over yesterday's $1.94 closing price. The stock has traded today between $2.98 and 3.98 per share and is currently trading at $3.43 (+$0.67, +24.28%).
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