Why WPX Energy Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas and oil explorer WPX Energy (NYSE: WPX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at WPX and see what CAPS investors are saying about the stock right now.

WPX facts

Headquarters (founded)

Tulsa, Okla. (2011)

Market Cap

$2.8 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$3.2 billion

Management

CEO Ralph Hill

CFO Rodney Sailor

Return on Equity (average, past 3 years)

(8.7%)

Cash/Debt

$153.0 million / $1.5 billion

Competitors

Anadarko Petroleum

Apache

Chesapeake Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 41 members who have rated WPX believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star TMFDeej, succinctly summed up the WPX bull case for our community:

Barron's recently published an interesting article about how the former [Williams Companies (NYSE: WMB  ) ] spinoff WPX Energy will be able to return to profitability even without an increase in the price of natural gas by renegotiating terrible legacy mid-stream contracts that it was saddled with over the next two years. That's just the sort of story catalyst that I like to see.

Any increase in the price of natural gas, which I'm certainly not counting on would be gravy. So would the sale of the company's Argentina assets (yuck).

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, WPX may not be your top choice.

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