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

Whiting's Production Estimates Lead To $9.90 Fair Value For Trust II, 24% Downside

Due to the overvaluation of Whiting USA Trust II (NYSE:WHZ) units by Whiting Petroleum's (NYSE:WLL) own recent production estimates, Stratesis has taken a short position in WHZ, expecting a significant drop in unit price to fair value around $9.90.

Overview

WHZ is an oil and gas trust that Whiting Petroleum Corporation offered to investors in March 2012 to raise $300 million in exchange for a time or volume limited future right to quarterly production earnings (distributions) from some of its oil and gas wells. Anyone investing in WHZ is cautioned to read Whiting's FAQ due to the trust's unique characteristics. Here are a few important excerpts:

Q - How long are the trust's distributions expected to...
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