Current WLL Stock Info

Whiting Petroleum stays on target with capex budget while exceeding production forecast
Denver-based Whiting Petroleum (ticker: WLL) announced its fourth quarter and year-end numbers today. The Williston-focused company reported that average production for the fourth quarter averaged 118.9 MBOEPD, above the company’s high end for guidance of 117.4 MBOEPD, which also translated into higher than expected cash from operations. Whiting said that cash from operations reached $236.8 million, more than twice the $114.9 million the company spent on ca...

Analyst Commentary

From KLR Group:
We are increasing our price target by $1 to $18 per share following a ~5% improvement in our capital productivity driven by an expected uplift in Niobrara production due to the implementation of enhanced completion designs (company plans to utilize to ~1,100 lbs of proppant per lateral ft and incremental frac stages in '17, up from ~700 lbs previously with first results expected this summer) and a ~4% increase in our '17 production forecast (acceleration of Niobrara DUC completion vs our previous expectation) partly offset by ~6% higher lease operating expense.
Whiting offers exposure to the Williston Basin and Niobrara, trades at a discount to the oil peer median (~6.6x '17 EV/EBITDA vs. median of ~9.8x), though does have less growth (17-'19 growth CAGR of ~9% vs. oil-dominant median of ~18%) and its '18 capital yield of 110%+ is below the group median of ~140%. In our opinion the stock offers investors beta to a further commodity price recovery with potential incremental upside from continued enhanced completion design implementation across its asset portfolio (e.g. offset operators in the Niobrara are utilizing over 1,400 of proppant per lateral ft with encouraging results vs. the ~1,100 lbs WLL is utilizing in '17) and/or further acceleration of its drilling tempo (the company has over 4,700 gross drilling locations in the Williston and 5,000 gross locations in the Niobrara, equating to 15+ years of inventory in the Williston and 30+ years in the Niobrara assuming our current '19 drilling tempo).  


Legal Notice