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WPX Energy (WPX Energy) ROE % : -13.45% (As of Sep. 2020)


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What is WPX Energy ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. WPX Energy's annualized net income for the quarter that ended in Sep. 2020 was $-620 Mil. WPX Energy's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was $4,609 Mil. Therefore, WPX Energy's annualized ROE % for the quarter that ended in Sep. 2020 was -13.45%.

The historical rank and industry rank for WPX Energy's ROE % or its related term are showing as below:

WPX' s ROE % Range Over the Past 10 Years
Min: -47.23   Med: -5.04   Max: 5.87
Current: -22.88

During the past 11 years, WPX Energy's highest ROE % was 5.87%. The lowest was -47.23%. And the median was -5.04%.

WPX's ROE % is not ranked
in the Oil & Gas industry.
Industry Median: 7.825 vs WPX: -22.88

WPX Energy ROE % Historical Data

The historical data trend for WPX Energy's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

WPX Energy ROE % Chart

WPX Energy Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -43.98 -17.17 -0.42 3.58 5.81

WPX Energy Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.52 -10.66 -32.35 -33.52 -13.45

Competitive Comparison of WPX Energy's ROE %

For the Oil & Gas E&P subindustry, WPX Energy's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


WPX Energy's ROE % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, WPX Energy's ROE % distribution charts can be found below:

* The bar in red indicates where WPX Energy's ROE % falls into.



WPX Energy ROE % Calculation

WPX Energy's annualized ROE % for the fiscal year that ended in Dec. 2019 is calculated as

ROE %=Net Income (A: Dec. 2019 )/( (Total Stockholders Equity (A: Dec. 2018 )+Total Stockholders Equity (A: Dec. 2019 ))/ count )
=256/( (4301+4515)/ 2 )
=256/4408
=5.81 %

WPX Energy's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %=Net Income (Q: Sep. 2020 )/( (Total Stockholders Equity (Q: Jun. 2020 )+Total Stockholders Equity (Q: Sep. 2020 ))/ count )
=-620/( (4681+4536)/ 2 )
=-620/4608.5
=-13.45 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2020) net income data. ROE % is displayed in the 30-year financial page.


WPX Energy  (NYSE:WPX) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2020 )
=Net Income/Total Stockholders Equity
=-620/4608.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-620 / 2332)*(2332 / 9679.5)*(9679.5 / 4608.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-26.59 %*0.2409*2.1004
=ROA %*Equity Multiplier
=-6.41 %*2.1004
=-13.45 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2020 )
=Net Income/Total Stockholders Equity
=-620/4608.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-620 / -720) * (-720 / -12) * (-12 / 2332) * (2332 / 9679.5) * (9679.5 / 4608.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8611 * 60 * -0.51 % * 0.2409 * 2.1004
=-13.45 %

Note: The net income data used here is four times the quarterly (Sep. 2020) net income data. The Revenue data used here is four times the quarterly (Sep. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


WPX Energy ROE % Related Terms

Thank you for viewing the detailed overview of WPX Energy's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


WPX Energy (WPX Energy) Business Description

Traded in Other Exchanges
N/A
Address
3500 One Williams Center, Tulsa, OK, USA, 74172-0172
WPX Energy, based in Tulsa, Oklahoma, is an unconventional oil and gas producer with acreage in the Williston Basin (Bakken), the Permian Basin, and the Rockies. At the end of 2019, the company reported net proven reserves of 528 million barrels of oil equivalent. Net production averaged 167 thousand barrels of oil equivalent per day in 2019, at a ratio of 79% liquids and 21% natural gas.
Executives
Bryan K Guderian officer: EVP Business Development ONE WILLIAMS CENTER, SUITE 3800, TULSA OK 74172
J Kevin Vann officer: EVP CFO ONE WILLIAMS CENTER, SUITE 3800, TULSA OK 74172
Faulkner Stephen L Jr officer: VP Controller and CAO 3500 ONE WILLIAMS CENTER, TULSA OK 74172
Encap Energy Capital Fund X, L.p. director, 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Encap Partners Gp, Llc director, 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Felix Energy Investments Ii, Llc director, 10 percent owner 1530 16TH STREET, SUITE 500, DENVER CO 80202
Felix Investments Holdings Ii, Llc director, 10 percent owner 1530 16TH STREET, SUITE 500, DENVER CO 80202
Karl F Kurz director DEVON ENERGY CORP., 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
Swanson Douglas E Jr director 1100 LOUISIANA, SUITE 4900, HOUSTON TX 77002
D Martin Phillips director 1100 LOUISIANA STREET, SUITE 4900, HOUSTON TX 77002
Kimberly S Lubel director P.O. BOX 696000, SAN ANTONIO TX 78269-6000
Kelt Kindick director DEVON ENERGY CORP, 333 W SHERIDAN AVE, OKLAHOMA CITY OK 73102
Valerie Williams director C/O OMNICOM GROUP INC., 280 PARK AVENUE, NEW YORK NY 10017
John A Carrig director ONE WILLIAMS CENTER, SUITE 3800, TULSA OK 74172
Robert Herdman director ONE WILLIAMS CENTER, SUITE 3800, TULSA OK 74172

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