Sitting on a Cash Pile 2.0? An Early Call on a Strong Small Cap Indie Oil & Gas Co

Sitting on a Cash Pile 2.0? An Early Call on a Strong Small Cap Indie Oil & Gas Co

$WPX

WPX Energy (NYSE:WPX) is smaller-cap indie energy company with solid upside potential and is a Top Permian Basin play.

WPX is an independent Oil & Gas exploration and production company that engages in the exploitation and development of unconventional properties in the United States. Its principal areas of operation include the Permian Basin, the Williston Basin in North Dakota and the San Juan Basin in New Mexico and Colorado.

It is a Top Permian-levered operator with sector-leading debt-adjusted cash flow growth supported by strong execution in the Delaware, while trading at Williston valuations due to its high financial leverage.

The Goldis has 9.50/share price target coming off of a chaos hammered price of 2.11 on 18 March.

I am calling WPX at 20 into Crude’s recovery by Q-4 Y 2021 as 2 of my Key long term indicators are Very Bullish following the breakout on 12 June at 6.73. The Support is major at 5.62, the Key resistance is at 6.00, a move above that mark sees 11.83, then 20.

WXP is trading well above the cloud and closed the wide gap up on 8 June and is basing in here.

Overall the technicals are Neutral with a Very Bullish bias, it is an early call if you can manage the risk. Otherwise wait for a solid close over 10 to enter a position.

WPX Energy, Inc. is a smaller cap US independent Crude Oil and nat gas exploration and production company, engages in the exploitation and development of unconventional properties.

It produces Crude Oil, nat gas, and nat gas liquids. The company operates 688 wells and owns interests in 787 wells covering an area of approximately 122,000 net acres located in Delaware Basin, Texas, and New Mexico, and operates 404 wells and owns interests in 104 wells that covers an area of approximately 87,000 net acres situated in the Williston Basin, North Dakota.

As of December 31, 2019, it had proved reserves of 528-M bbls of Crude Oil equivalent. The company was founded in Y 1983 and is HQ’d in Tulsa, Oklahoma.

Have a healthy day, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge. Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.