Mike Cutler
Long/short equity, event-driven, mid-cap, small-cap

Whiting USA Trust 1 & 2 Reality Check: Comparison Shop Before You Buy


Whiting USA Trust 1 (NYSE:WHX) and Whiting USA Trust 2 (WHZ) are two trusts set up by Whiting Petroleum (NYSE:WLL) to sell future oil and natural gas production to investors. WHX is near the end of its life, whereas WHZ is near the beginning of its life. Both trusts will end at $0 when they reach their termination.

After writing a recent article on WHX's fair value, I had a number of people ask me to do a similar analysis for WHZ.

Even though WHX and WHZ are similar, there are some key differences, one of which is that they have wildly different valuations compared to their remaining distributions. WHX is grossly overvalued...

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