Seeking Alpha

A profit warning from Superior Energy Services (SPN -1%) - which cited Bakken flooding issues -...

A profit warning from Superior Energy Services (SPN -1%) - which cited Bakken flooding issues - needn't be an issue for Bakken formation exploration companies WLL, OAS, QEP, says Sterne Agee. None of those firms rely heavily on Superior as a vendor and all have done a good job managing Street expectations about the impact of flooding on Q2 earnings. If they do dip due to flooding concerns, it'll be time to step up and buy.
Comments (1)
  • It is hard to see why there is any suggestion of WLL in this alert.

     

    WLL gave guidance 2 days ago that 2nd qtr production in BOE was going to beat the high end guidance from the prior guidance given on April 24. In addition, LOE were just above the low end guidance, interest expense was about midpoint of prior guidance, production taxes as percent of revenues is now projected at less than the low end guidance, oil price differential to NYMEX was now guided at $5.08/Bbl lower than NYMEX versus prior low end guidance of $6.5/bbl (high end differential was $7.50/Bbl).

     

    All in all, WLL appears virtually unaffected by whatever Superior experienced insofar as production, costs and revenues are concerned.
    17 Jul 2013, 08:38 PM Reply Like
DJIA (DIA) S&P 500 (SPY)