Whiting Petroleum Corp.

Whiting Petroleum Corp. (WLL) shares just broke above a key level of resistance and appear to be settling in higher territory. This comes after what has already been an amazing year for this stock, which has more than doubled in value. Analyst estimates continue to rise.

Whiting Petroleum Corporation engages in the exploration and production of oil and gas primarily in the Rocky Mountains, Gulf Coast and Michigan regions of the United States. The company was founded in 1983, carries a market cap. of $4.68 billion and is headquartered in Denver, Colorado.

Excellent First-Quarter

Whiting is among the numerous domestic energy explorers that is raking in profits because of higher crude prices. The company's first-quarter results, reported on May 5, were impressive. Revenue totaled $264.1 million, a 63% increase form last year. Net income jumped to $62.3 million, up more than 500% from last year's $10.7 million.

This produced earnings of $1.47 per share, far ahead of analyst estimates of $1.26 per share.

This is the fourth time in four quarters that Whiting has surprised and beaten analyst estimates, having done so by an average of 15 cents, or 22%.

A Strategic Partnership

During the first-quarter earnings call, Whiting also announced that it had entered into an agreement with Chicago Energy Associates to develop the Flat Rock Natural Gas Field in Uintah County, Utah. The purchase price was $365 million. With natural gas prices surging this looks like a well-timed investment.

Estimates Are Up

With energy prices continuing to spiral upward, analysts have been steadily increasing their earnings projections. Whiting's current-year estimate stands at $6.90 per share, up from $4.21 per share 90 days ago.

Valuations

Based upon this earnings target, shares of Whiting look appropriately priced, trading with a forward P/E multiple just over 15X, right in line with the overall market.

The Chart

As one might imagine, shares of Whiting have been surging for most of 2008, advancing from as low as $44 to their current price of over $110. Just yesterday, this stock broke through a key level of resistance just above $108 and now appear to be settling in higher territory. Take a look at the chart below.