Whiting Petroleum CorporationNYSE
Whiting Petroleum: What To Expect
Richard Zeits • 54 Comments
Richard Zeits • 54 Comments
Whiting Petroleum: 'Holding The Line' At $50 Per Barrel
Richard Zeits • 34 Comments
Richard Zeits • 34 Comments
Wed, Nov. 30, 7:30 PM
- Analysts say today's agreement to curb oil production will elevate prices through at least H1 2017, and the first to pounce on higher prices by expanding drilling will be U.S. shale explorers.
- In shale fields across the U.S., production costs have been cut roughly in half since 2014, when Saudi Arabia raised output in an attempt to drive higher-cost shale producers out of the market, but instead of killing the U.S. shale industry, the ensuing price war made shale a leaner and meaner rival.
- As an example, Concho Resources (NYSE:CXO) CEO Tim Leach says his company is on track to raise production 5% by year’s end, even though it is spending 7% less than originally budgeted for 2016.
- Continental Resources' (NYSE:CLR) Harold Hamm says U.S. oil production will rise in the wake of OPEC’s cut, and rising prices could unlock some of the thousands of drilled but uncompleted wells in the U.S.; some of CLR's ~175 uncompleted wells now will be completed in light of OPEC’s decision and the improved price outlook but the company will not add rigs.
- “As you move up the price curve and you get more confident of the outlook for future pricing, we’ll be able to add activity as cash flows grow," says Newfield Exploration (NYSE:NFX) CEO Lee Boothby.
- Among other shale-focused companies that enjoyed huge gains today: WLL, PE, OAS, SN, CRC, FANG, RSPP, PXD, XEC, EPE, WPX.
Wed, Nov. 30, 2:00 PM
Wed, Nov. 30, 12:45 PM
Wed, Nov. 30, 9:23 AM
- Gainers: SCON +71%. CRC +32%. ORIG +16%. DNR +16%. GST +16%. OAS +17%. LEI +16%. WTI +14%. SM +13%. AREX +13%. SN +13%. CPE +13%. SDRL +13%. CIE +13%. HHS +13%. SGY +13%. LPI +12%. SYRG +12%. WLL +11%. ATW +11%. GTE +11%. CLR +11%. WPX +11%. ESV +11%. NE +10%. CRZO +10%. DO +10%. NBR +10%. BTE +10%. MRO +10%.
- Losers: ARWR -61%. CERC -47%. CMRE -14%. AEO -10%. GLBS -9%.
Wed, Nov. 23, 10:28 AM
- More than $18B of loan commitments comes due in 2019 for a group of 14 North American junk-rated oil producers, and talks with lenders may be tougher than expected because bankers are wary of the $30B more in funded term that matures in the following four years, Bloomberg reports.
- Among the 14 companies Bloomberg studied, California Resources (CRC -0.7%), Whiting Petroleum (WLL +0.9%) and EP Energy (EPE +3.4%) have used their credit lines the most, tapping a combined $2.29B of the $5.55B they can borrow under credit lines committed until 2019 - WLL has drawn the least proportionately, with $650M out of $2.5B - and the three companies have a combined $9.13B of debt due during 2020-23.
- With energy prices still depressed, the drillers have not been able to earn their way out of trouble: CRC's profit fell by two-thirds last year, and WLL and EPE each reported declines of more than 40%.
Mon, Nov. 21, 5:43 PM
Mon, Nov. 21, 4:37 PM
- Tesoro Logistics (NYSE:TLLP) agrees to acquire North Dakota crude oil, natural gas and produced water gathering systems and two natural gas processing facilities from Whiting Petroleum (NYSE:WLL) for $700M, and terminalling and storage assets located in Martinez, Calif., from Tesoro (NYSE:TSO) for $400M.
- The North Dakota gathering and processing assets include 650-plus miles of crude oil, natural gas and produced water gathering pipelines, 170M cf/day of natural gas processing capacity and 18.7K bbl/day of fractionation capacity; The revenue from the assets is ~90% fee-based and backed by acreage dedications from 10 producers.
- The California terminalling and storage assets include 5.8M barrels of crude oil, feedstock and refined product storage capacity at TSO's Martinez refinery along with a marine terminal capable of handling up to 35K bbl/day of feedstock and refined product throughput.
- TLLP says the acquisitions will strengthen its position as a leading integrated midstream service provider and are expected to support distribution growth.
Wed, Nov. 16, 2:58 PM
- North Dakota’s crude oil output in September fell to the lowest level in more than two years, staying below the 1M bbl/day level for the second month in a row.
- Production fell 1.1% for the month to 971K bbl/day in September, the most recent month for which data is available, 10K bbl/day less than August and the lowest level since February 2014, when output was 952K bbl/day.
- Natural gas production in North Dakota fell 1.7% in September to 1.61B cf/day, the state also reports.
- Companies with a presence in North Dakota's Bakken shale include CLR, WLL, EOG, ERF, HK, HES, MRO, OAS, QEP, SM, STO, TPLM.
Wed, Nov. 9, 2:57 PM
- U.S. big energy stocks surge on Trump's victory, seeing an opportunity for more oil and gas production and to cut red tape that has held back billions of dollars of investment in new projects.
- The E&P industry is looking to Trump to "undo many of the onerous regulations that have plagued our industry throughout an Obama presidency," says Continental Resources (CLR +3.9%) CEO Harold Hamm, who adds that the government's reluctance to lease federal land for drilling is holding back E&P firms.
- Trump may be considering Hamm as a possible energy secretary, in what would be the first time the job has been filled from the oil and gas industry since the position was created in 1977.
- ExxonMobil (XOM +1.2%) says it hoped Trump's administration would use "sound science" on future regulations, and ConocoPhillips (COP +3.5%) says it plans to work with Trump to protect the environment but also produce oil and gas needed to grow the economy.
- Shares of companies focused primarily on U.S. shale patches, including Oasis Petroleum (OAS +7.6%) and Whiting Petroleum (WLL +5.9%), are sharply higher.
Fri, Oct. 28, 2:58 PM
- Whiting Petroleum (WLL +2.2%) extends yesterday's big post-earnings move, as it enjoys a pair of new analyst upgrades at Raymond James and Stephens.
- Raymond James upgrades shares to Strong Buy from Outperform with a $16 price target, raised from $14, saying WLL posted "extremely impressive" Q3 results and projects double-digit output growth next year from current levels.
- Stephens upgrades WLL to Overweight from Equal Weight, believes the worst may be over for the company.
Thu, Oct. 27, 3:55 PM
- Whiting Petroleum (WLL +5.9%) is one of the day's strongest performers among oil and gas stocks despite posting a wider than expected Q3 loss on 75% less revenue Y/Y.
- WLL says Q3 production came in at the high end of guidance and totaled 11M boe, an average of 119.9K boe/day, and sees Q4 production at 10.4M-10.8M boe.
- But Oppenheimer's Fadel Gheit sees plenty to like in the numbers, saying WLL’s operating results have "significantly improved," and the company's financial flexibility has improved on debt reduction through asset sales and equity exchanges.
- Piper Jaffray applauds WLL for higher oil production and beating analysts’ EBITDA predictions with lower capex relative to consensus expectations.
- Gheit also thinks WLL is a takeover candidate, given its reduced debt and low valuation, noting that shares have fallen 65% since the company was shopped around last year.
Wed, Oct. 26, 10:30 PM
Tue, Oct. 25, 5:35 PM
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Fri, Oct. 21, 10:22 PM
- Raymond James analyst Pavel Molchanov has long been bearish on ExxonMobil (NYSE:XOM), and now he recommends the same advice for current InterOil (NYSE:IOC) shareholders following XOM's buyout: Sell.
- Molchanov says XOM is poorly positioned to take full advantage of a sustained oil price recovery, as the company's structural overweight to refining, chemicals, and (within upstream) non-LNG gas does not directly benefit from rising oil prices; he also says XOM shares already are pricing in long-term oil prices at an above-consensus WTI at $70/bbl.
- For current IOC shareholders, Molchanov says sell the post-buyout shares and use the proceeds to reinvest into any of a wide range of oil-levered stocks such as Halliburton (NYSE:HAL), Hess (NYSE:HES), Marathon Oil (NYSE:MRO) and Whiting Petroleum (NYSE:WLL).
- Molchanov believes the IOC founder's last-ditch attempt to delay XOM’s purchase will not succeed; the next hearing is scheduled for Oct. 31.
Mon, Oct. 17, 1:08 PM
- Whiting Petroleum (WLL -2.7%) has not been helped today by speculation from Oppneheimer’s Fadel Gheit that reduced debt and low valuation could make the company an attractive takeover candidate.
- Gheit notes that WLL had $1.5B of liquidity at the end of Q2, has no major debt maturities until 2019, and remains well within all of its debt covenants, which makes it significantly more resilient to lower oil prices.
- WLL has been among the worst performers as E&P stock prices surge, declining ~8% YTD vs. an average gain of 41% for its peers, 36% for WTI crude oil and 5% for the S&P 500, and the stock has lagged its peers and the S&P in the last three-, five- and 10-year periods.
Thu, Oct. 13, 6:41 PM
- North Dakota oil production dropped below 1M bbl/day in August for the first time in more than two years, as the state's higher-cost production continues to struggle relative to other parts of the U.S.
- Production from North Dakota’s portion of the Williston Basin fell to 981K bbl/day in August, down 4.7% from July and the lowest since March 2014; the state's peak production, in December 2014, was more than 1.23M bbl/day.
- Lynn Helms, director of the state’s Department of Mineral Resources, expects oil production to decline to a low of ~900K bbl/day by mid-2017 before recovering.
- Companies with a presence in North Dakota's Bakken Shale include CLR, WLL, EOG, ERF, HK, HES, MRO, OAS, QEP, SM, STO, TPLM.