- Whiting Petroleum (NYSE:WLL) -19% premarket as the company puts the brakes on widely reported takeover speculation, disclosing that it is "currently exploring asset sales of non-core properties [but] is not however pursuing any significant strategic transaction at this time."
- WLL announced more than $3B in debt and equity financing yesterday after the close, taking advantage of a recent share price rally.
- Wall Street analysts - who had been growing increasingly skeptical of a takeover - generally back the moves, believing the bolstered balance sheet will enable WLL to better capitalize on its industry-leading Bakken position, help pay down WLL's revolver, fund any cash flow shortfall over the next several years, and reduce the company's reliance on a planned $1B in asset divestitures.
- UBS reiterates its Buy rating and $44 price target on shares; Sterne Agee suggests buying on today's inevitable dip, saying shareholders are best served by absorbing dilution from the equity issuance, then waiting for crude to retrench at $60/bbl before WLL perhaps explores a sale.