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Independant oil and gas company Whiting Petroleum Corp reported worse than expected fourth quarter earnings after the market close Tuesday.  WLL was hurt by lower crude prices and higher oil differentials. Oil differentials significantly increased in December.

Whiting Petroleum

Whiting Petroleum Corp NYSE: WLL Reported Earnings After Close Tuesday

($.05) Missed $0.53 EPS AND $473.23 Missed $496.51 million forecast in revenue 

Earnings

Whiting Petroleum reported fourth quarter EPS of ($0.05), $0.58 worse than the analyst estimate of $0.53. Revenue for the quarter came in at $473.23 million versus the consensus estimate of $496.51 million. Profits were hit by despite lower crude prices and higher oil differentials. Oil differentials significantly increased in December, which accounts for the difference in realized differentials versus Company guidance. Oil differentials have normalized as reflected in Company guidance. 

Whiting Petroleum Corp NYSE: WLL

Market Reaction After hours $24.99 −$3.14 (-11.16%)

Highlights

  • Full Year 2018 Daily Production Averaged 127,980 BOE/d, an 8% increase Year-Over-Year
  • 2018 Net Cash Provided by Operating Activities Totaled $1,092 Million
  • 2018 Free Cash Flow Totaled $280 Million
  • 2018 Full Year LOE and G&T, G&A and DD&A Expense per BOE Decreased 10%, 8% and 24% from 2017 Levels
  • Q4 2018 Daily Oil Production Averaged 88,645 Bbl/d, a 3% increase over Third Quarter 2018

Outlook

Optimized Completions Deliver Strong Performance across Expanding Core 2019 Capital Budget of $800-$840 million Forecast to Grow Operated Williston Basin Total Production 11% and Oil Production 15% Year-Over-Year

Whiting Petroleum Q3 Earnings Recap

Forecast $0.59 EPS on $522.46 million forecast in revenue 

Earnings

Whiting Petroleum reported third quarterly adjusted net income of $84.7 million, or 92 cents per share, topping analysts’ consensus for 59 cents per share. Last year, the company reported a $50 million loss for the third quarter. Revenues for the quarter were $566.7 million, beating analysts’ forecasts of $522.46 million, and up from $324.2 million a year ago. of $0.59 per share, which represents a year-over-year change of +205.4%. 

 

Whiting Petroleum Corp NYSE: WLL

Market Reaction After Hours $36.70▲ 1.42 (+4.02%)

Highlights

Whiting’s third quarter production averaged 128,680 barrels of oil equivalent per day, up 13 percent from a year ago. WLL forecast its production to increase 5 percent sequentially in the fourth quarter, Chief Executive Bradley Holly said in a statement.

Whiting Petroleum Corporation will host a conference call with investors, analysts and other interested parties is scheduled for 11:00 a.m. ET (10:00 a.m. CT, 9:00 a.m. MT) on Wednesday, October 31, 2018 to discuss Whiting's third quarter 2018 financial and operating results.

Wells Fargo upgraded Whiting Petroleum on October 24, 2018 from Market Perform to Outperform with a price target $67.00 (from $53.00) The analyst comments "With shares trading at a discount, we believe this gap should close as the company executes on its plan to generate free cash flow, grow its inventory in the Williston, and reduce leverage."

About Whiting Petroleum Corporation

Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States.

The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange

Source: Whiting

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