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Whiting (WLL) Beats on Q2 Earnings, Raises Production Outlook
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The stock of upstream energy operator Whiting Petroleum Corporation showed no substantial movement since its second-quarter 2021 earnings announcement on Aug 4. Despite top and bottom-line beats and an increase in production guidance, investors were possibly spooked by a rise in its capital budget.
What Did Whiting Petroleum’s Earnings Unveil?
Whiting Petroleum reported second-quarter 2021 adjusted net income per share of $3.01, handsomely beating the Zacks Consensus Estimate of $2.45 and the sequential quarter’s earnings of $2.79 owing to prices and better-than-expected production and significant improvement in oil price realizations.
Total operating revenues came in at $351.6 million, ahead of the Zacks Consensus Estimate of $269 million. Moreover, the top line improved 14.4% from the quarter-ago level of $307.4 million.
On an encouraging note, the company’s free cash flow of $111.3 million was higher than the first-quarter 2021 figure of $108.2 million.
Production & Prices
Whiting Petroleum’s total oil and gas production reported a sequential increase of 4.2% to 8,431 thousand barrels of oil equivalent/ MBOE (comprising 80% liquids). Oil volumes at 4,860 thousand barrels (MBbl) edged up 0.8% from the level achieved in first-quarter 2021, while natural gas output improved 4.1% to reach 10,666 thousand cubic feet. Daily production averaged 92.6 MBOE, surpassing the Zacks Consensus Estimate of 87 MBOE.
The average realized crude oil price during the second quarter was $63.46 per barrel, reflecting a 19.2% rise from the quarter-ago realization of $53.24.
Balance Sheet & Capital Expenditure
As of Jun 30, Whiting Petroleum had approximately $19.1 million in cash, cash equivalents and restricted cash. The oil explorer’s long-term debt of $115 million represented a debt-to-capitalization of 9%. In the reported quarter, the company spent $58.5 million on its capital program.
2021 Guidance
Whiting Petroleum, which aims to become a debt-free company by year-end, projects to generate more than $700 million in EBITDAX. Further, management anticipates free cash flow in excess of $425 million for 2021 at an average oil price of $60 per barrel. Previously, the company anticipated EBITDAX and free cash flow of $550 million and $300 million, respectively.
Besides, Whiting Petroleum's daily output for 2021 will now come in at 90 MBOE, as per the midpoint of the latest guidance, up from 85 MBOE implied in the previous forecast. At the same time, the energy explorer upped the bottom end of its annual capital spending guidance by $12 million to $240-$252 million.
Finally, the company is committed to returning capital to its shareholders but is ready to wait for the time being to make the process sustainable.
Zacks Rank & Stock Picks
Whiting Petroleum currently carries a Zacks Rank #1 (Strong Buy).
Apart from Whiting Petroleum, investors interested in the energy sector might look at Ovintiv (OVV - Free Report) , EOG Resources (EOG - Free Report) and APA Corporation (APA - Free Report) , each presently flaunting a Zacks Rank of 1.
Ovintiv has an expected earnings growth rate of 1,177.14% for the current year.
EOG Resources has an expected earnings growth rate of 403.42% for the current year.
APA has an expected earnings growth rate of 398.15% for the current year.
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Whiting (WLL) Beats on Q2 Earnings, Raises Production Outlook
The stock of upstream energy operator Whiting Petroleum Corporation showed no substantial movement since its second-quarter 2021 earnings announcement on Aug 4. Despite top and bottom-line beats and an increase in production guidance, investors were possibly spooked by a rise in its capital budget.
What Did Whiting Petroleum’s Earnings Unveil?
Whiting Petroleum reported second-quarter 2021 adjusted net income per share of $3.01, handsomely beating the Zacks Consensus Estimate of $2.45 and the sequential quarter’s earnings of $2.79 owing to prices and better-than-expected production and significant improvement in oil price realizations.
Total operating revenues came in at $351.6 million, ahead of the Zacks Consensus Estimate of $269 million. Moreover, the top line improved 14.4% from the quarter-ago level of $307.4 million.
On an encouraging note, the company’s free cash flow of $111.3 million was higher than the first-quarter 2021 figure of $108.2 million.
Production & Prices
Whiting Petroleum’s total oil and gas production reported a sequential increase of 4.2% to 8,431 thousand barrels of oil equivalent/ MBOE (comprising 80% liquids). Oil volumes at 4,860 thousand barrels (MBbl) edged up 0.8% from the level achieved in first-quarter 2021, while natural gas output improved 4.1% to reach 10,666 thousand cubic feet. Daily production averaged 92.6 MBOE, surpassing the Zacks Consensus Estimate of 87 MBOE.
The average realized crude oil price during the second quarter was $63.46 per barrel, reflecting a 19.2% rise from the quarter-ago realization of $53.24.
Balance Sheet & Capital Expenditure
As of Jun 30, Whiting Petroleum had approximately $19.1 million in cash, cash equivalents and restricted cash. The oil explorer’s long-term debt of $115 million represented a debt-to-capitalization of 9%. In the reported quarter, the company spent $58.5 million on its capital program.
2021 Guidance
Whiting Petroleum, which aims to become a debt-free company by year-end, projects to generate more than $700 million in EBITDAX. Further, management anticipates free cash flow in excess of $425 million for 2021 at an average oil price of $60 per barrel. Previously, the company anticipated EBITDAX and free cash flow of $550 million and $300 million, respectively.
Besides, Whiting Petroleum's daily output for 2021 will now come in at 90 MBOE, as per the midpoint of the latest guidance, up from 85 MBOE implied in the previous forecast. At the same time, the energy explorer upped the bottom end of its annual capital spending guidance by $12 million to $240-$252 million.
Finally, the company is committed to returning capital to its shareholders but is ready to wait for the time being to make the process sustainable.
Zacks Rank & Stock Picks
Whiting Petroleum currently carries a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Apart from Whiting Petroleum, investors interested in the energy sector might look at Ovintiv (OVV - Free Report) , EOG Resources (EOG - Free Report) and APA Corporation (APA - Free Report) , each presently flaunting a Zacks Rank of 1.
Ovintiv has an expected earnings growth rate of 1,177.14% for the current year.
EOG Resources has an expected earnings growth rate of 403.42% for the current year.
APA has an expected earnings growth rate of 398.15% for the current year.