Why WPX Energy's Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of oil and gas explorer WPX Energy (NYSE: WPX  ) crashed to a 10% loss this morning, after releasing earnings. Shares have quickly recovered some of that loss, but still trade down about 5% on the day.

So what: Total revenue in the third quarter fell to $677 million, continuing a steady decline for the company. On the bottom line, results continued to deteriorate, and losses from continuing operations hit $66 million, or $0.33 per share. That's well above the $0.02 loss that analysts expected.

Now what: Producers are being hit by low energy prices, and it doesn't help that WPX's production also fell during the year. I'm not liking the direction the company is headed, with results continually deteriorating over the past year and a half. I would be a seller today, and don't see a reason to buy unless energy prices jump dramatically in the future.

Interested in more info on WPX Energy? Add it to your watchlist by clicking here.

 

Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDrawThe Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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