December 11, WPX Energy, Inc. Capital One Securities 9th Annual Energy Conference

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1 December 11, 2014 WPX Energy, Inc. Capital One Securities 9th Annual Energy Conference

2 Disclaimer The information contained in this summary has been prepared to assist you in making your own evaluation of the Company and does not purport to contain all of the information you may consider important in deciding whether to invest in shares of the Company s common stock. In all cases, it is your obligation to conduct your own due diligence. All information contained herein, including any estimates or projections, is based upon information provided by the Company. Any estimates or projections with respect to future performance have been provided to assist you in your evaluation but should not be relied upon as an accurate representation of future results. No persons have been authorized to make any representations other than those contained in this summary, and if given or made, such representations should not be considered as authorized. Certain statements, estimates and financial information contained in this summary constitute forward-looking statements or information. Such forward-looking statements or information involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from the results implied or expressed in such forward-looking statements or information. While presented with numerical specificity, certain forward-looking statements or information are based (1) upon assumptions that are inherently subject to significant business, economic, regulatory, environmental, seasonal, competitive uncertainties, contingencies and risks including, without limitation, the ability to obtain debt and equity financings, capital costs, construction costs, well production performance, operating costs, commodity pricing, differentials, royalty structures, field upgrading technology, and other known and unknown risks, all of which are difficult to predict and many of which are beyond the Company's control, and (2) upon assumptions with respect to future business decisions that are subject to change. There can be no assurance that the results implied or expressed in such forward-looking statements or information or the underlying assumptions will be realized and that actual results of operations or future events will not be materially different from the results implied or expressed in such forward-looking statements or information. Under no circumstances should the inclusion of the forward-looking statements or information be regarded as a representation, undertaking, warranty or prediction by the Company or any other person with respect to the accuracy thereof or the accuracy of the underlying assumptions, or that the Company will achieve or is likely to achieve any particular results. The forward-looking statements or information are made as of the date hereof and the Company disclaims any intent or obligation to update publicly or to revise any of the forward-looking statements or information, whether as a result of new information, future events or otherwise. Recipients are cautioned that forward-looking statements or information are not guarantees of future performance and, accordingly, recipients are expressly cautioned not to put undue reliance on forward-looking statements or information due to the inherent uncertainty therein. 2

3 Reserves Disclaimer The SEC requires oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and governmental regulations. The SEC permits the optional disclosure of probable and possible reserves. We have elected to use in this presentation probable reserves and possible reserves, excluding their valuation. The SEC defines probable reserves as those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered. The SEC defines possible reserves as those additional reserves that are less certain to be recovered than probable reserves. The Company has applied these definitions in estimating probable and possible reserves. Statements of reserves are only estimates and may not correspond to the ultimate quantities of oil and gas recovered. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC s reserves reporting guidelines. Investors are urged to consider closely the disclosure regarding our business that may be accessed through the SEC s website at The SEC s rules prohibit us from filing resource estimates. Our resource estimations include estimates of hydrocarbon quantities for (i) new areas for which we do not have sufficient information to date to classify as proved, probable or even possible reserves, (ii) other areas to take into account the low level of certainty of recovery of the resources and (iii) uneconomic proved, probable or possible reserves. Resource estimates do not take into account the certainty of resource recovery and are therefore not indicative of the expected future recovery and should not be relied upon. Resource estimates might never be recovered and are contingent on exploration success, technical improvements in drilling access, commerciality and other factors. 3

4 WPX Today Strong balance sheet and liquidity position Enables flexibility in lower-commodity price environment Provides ability to be opportunistic Simplified story, three core basins Williston San Juan Piceance Margins expanding More balanced commodity mix Relentless focus on cost Announced more than a billion dollars in transactions in the past 6 months 4

5 Premier Western Energy Producer WILLISTON BASIN High-Quality Rocks (Rocks matter) Established Infrastructure (Infrastructure matters) PICEANCE BASIN Access to Premier Markets (Markets matter) SAN JUAN BASIN Commodity Optionality (Flexibility matters) Natural Gas Oil Natural Gas and Natural Gas Liquids Exiting Marcellus 5

6 Potential Future Catalysts WILLISTON Additional downspacing Stimulation optimization Greater EURs SAN JUAN Increasing leasehold in oily Gallup Resource assessment in dry gas PICEANCE Ryan Gulch Resource assessment Niobrara Mancos EXPLORATION Early basin entry Liquids focused Must be scalable 6

7 $ per MMBtu Western Prices Have Increased Relative to Eastern Locations 0.50 West Basis Strengthening 1 East Basis Weakening 2 $ ($0.19) ($0.20) ($0.33) ($1.05) ($1.74) to to Now 3 Yr Fwd 2007 to to Now 3 Yr Fwd 1 Northwest Wyoming/Rocky Mountain basis 2 Dominion South basis 3 3-year average strip price as of 11/13/2014 7

8 Strong Western Supply/Demand Fundamentals Through 2019 Northwest Demand +2.0 Bcf/d 2.0 Bcf/d demand increase through 2019 Demand +0.5 Bcf/d Rockies and San Juan Basin production flat to declining through 2019 Southwest 0.5 Bcf/d demand increase through 2019 Demand +1.8 Bcf/d Mexico 1.8 Bcf/d demand increase through

9 Williston Efficiencies Driving Performance 25 Williston Production Volume (MBOE/D) Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 Continued strong production growth Averaged 20.1 Mbbl/d in 3Q 14 Oil production up 44% 3Q 14 vs. 3Q 13 Relentless focus on cost controls Drilling and completion Facilities design Lease operating expense 1 Blended infill Middle Bakken and Three Forks type curve using 3MM-pound stimulations. 2 Days of production post clean out. Larger stimulations exceeding blended infill EUR type curve 1 Ruby 31-30HX exceeds type curve by 33 Mbo, or 56%, in the first 119 days 2 Alfred Old Dog 30-31HD exceeds type curve by 14.8 Mbo, or 28%, in the first 100 days 2 Morsette 35-26HD exceeds type curve by 31 Mbo, or 70%, in the first 80 days 2 Martin Fox 20-17HF exceeds type curve by 10.9 Mbo, or 54%, in the first 30 days 2 9

10 Cumulative Barrels of Oil Williston Encouraging Initial Results of Larger Completions 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, Days After Clean Out RUBY 31-30HA (5.7MM#/25 stg MB) AOD 30-31HD (5.8MM#/35 stg MB) MORSETTE 35-26HD (5.5MM#/35 stg MB) AOD 19-18HD (5.2MM#/35 stg MB) MARTIN FOX 20-17HB (5.9MM#/ 35 stg MB) MARTIN FOX 20-17HA (4.9MM#/29 stg MB) MARTIN FOX 20-17HF (5.7MM#/35 stg MB) RUBY 31-30HX (6.3MM#/33 stg 3F) RUBY 31-30HW (5.7MM#/25 stg 3F) MORSETTE 35-26HZ (5.3MM#/35 stg 3F) MORSETTE 35-26HX (5.5MM#/35 stg 3F) AOD 19-18HZ (5.1MM#/35 stg 3F) 2015 BLENDED TYPE CURVE 3MM# 10

11 MBOE per day Days Avg Rig Ct 1.0 Avg Rig Ct 1.0 Avg Rig Ct 1.0 Avg Rig Ct 1.0 Avg Rig Ct 1.6 Avg Rig Ct 2.0 Avg Rig Ct 2.3 Well Count San Juan Gallup Accelerating Production Growth Rapidly growing oil production Averaged 3.9 Mbbl/d in 3Q 14 Oil production up 255% 3Q 14 vs. 3Q 13 Oil production up 30% 3Q 14 vs. 2Q Mancos Gallup Drilling Metrics by Quarter 38.9 Spud to Release Added 3rd rig in Gallup Increasing spuds from 40 to 48 in 2014 Record spud-to-rig release of 9.5 days with a TD of 10,390 Acquired two 7,500 laterals drilled by 3rd party Spud first WPX-operated 7,500 lateral Signed 5-year 10,000 bbl/d rail deal at a planned unit train facility Expected in-service date of 3Q 15 Close proximity to premium West Coast markets and easy access to Gulf Coast Additional capacity available as basin production grows Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 San Juan Gallup Production (MBOE per day) Q 13 1Q 14 2Q 14 3Q ' WPX Energy, Inc. Capital One Securities 9 th Annual Energy Conference Dec. 11,

12 Piceance Ryan Gulch Efficiencies and Deep Resource Assessment 3rd quarter activity Spud 70 wells in 3Q Spud 209 wells 3Q YTD 3rd quarter net production 640 MMcfe/d Natural gas 542 MMcf/d NGL 14.5 Mbbl/d Oil 1.7 Mbbl/d Highlights from Ryan Gulch Drilled 1st Ryan Gulch vertical deep well test Record well drilled 8.1 days 31% improvement from 2013 average 11.8 days Water disposal costs decreased from $2.55/bbl to $0.64/bbl in 2014 Niobrara update Parachute horizontal test drilled and completed Peak rate of 14 7,200 psi Testing additional intervals in the Mancos Group Deep resource assessment Niobrara/Mancos Stacked-pay potential Testing new fields Ryan Gulch Lower Williams Fork (2,500 ft) Iles (650 ft) Sego (600 ft) Loyd (625 ft) Castlegate (650 ft) Mancos B (1,100 ft) Niobrara (1,430 ft) Mancos/Niobrara Group (5,000 ft) 12

13 Hedging Overview As of 12/8/2014 Volume/Day 2015 Average Price Natural Gas (MMBtu) Fixed Price Swaps 1 442,055 $4.10 Costless Collars 50,000 $ $4.50 Natural Gas Basis (MMBtu) Dominion Basis Swaps MidCon Basis Swaps 12,500 ($0.16) Rockies Basis Swaps 150,000 ($0.11) San Juan Basis Swaps 85,000 ($0.10) SoCal Basis Swaps 20,000 $0.18 Crude Oil (bbl) Fixed Price Swaps 1 20,236 $ In connection with several natural gas and crude oil swaps, we entered into swaptions with the swap counterparties granting the counterparty the right, but not the obligation, to enter into an underlying swap with us in the future. 13

14 WPX Foundational Elements COST FOCUS RISK TOLERANCE ENTREPRENEURIAL MINDSET CULTURE OF ACCOUNTABILITY 14