Whiting Petroleum went down 9% after the firm announced that it agreed to exchange another $1.06B worth of notes into new mandatory convertible notes.

This marks the second time this year that WLL has done so, the first of which was back in March, when it exchanged $477 million worth of bond debt into convertible debt.

Four percent of the new convertible notes will be converted into WLL shares every day for the next 25 days, so long as the stock price remains above $8.75. Today’s drop is due to current shareholders’ concerns over dilution of the stock as a result of the exchange. If all of the notes were converted according to WLL’s closing price of $12.10 yesterday, they would need to issue 83 million more shares.

As our team points out, the steep fall of oil prices from $110 per barrel in mid-2014 to about $50 now has had a negative impact on all oil firms. WLL, the Delaware based firms with rigs across the U.S. has experienced the same financial woes as a result.

Outlook on WLL remains mixed, with 7 analysts revising earnings estimates up and 4 revising theirs down for Q1 in the last sixty days. Long term outlook seems a bit murky, with 10 analysts revising their estimates up vs. 6 revising down for this fiscal year.

The Zacks Consensus Estimate predicts a loss of $0.56 per share in Q1 and a loss of $0.43 per share in Q2.

WLL currently sits at a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>