Whiting Petroleum Corporation reported first-quarter 2019 adjusted net loss per share of 16 cents versus the Zacks Consensus Estimate of earnings of 20 cents. Lower-than-expected oil, natural gas liquids (NGLs) and gas prices led to the underperformance. Precisely, the company’s realized NGLs price was $6.62 a barrel, significantly lagging the Zacks Consensus Estimate of 18.78. Realized prices of oil and gas also missed the consensus estimate by 1.6% and 28%, respectively.
Further, its bottom line compared unfavorably with the year-ago EPS of 92 cents a share owing to weaker year-over-year commodity price realizations.
Total operating revenues came in at $389.5 million, missing the Zacks Consensus Estimate of $420 million. The top line also recorded a decline of 24.4% from the year-ago level of $515.1 million.
On a further discouraging note, the company’s discretionary cash flow of $199.5 million was lower than the capital spending of $219 million, translating into a negative FCF of $19.5 million. Notably, total operating expenses of the company increased 4.4% from the prior-year level to a total of $435.5 million in the quarter under review.
Production & Prices
Whiting’s total oil and gas production recorded a nominal y/y increase of 1.2% to 11.58 million oil-equivalent barrels (comprising 82% liquids).
The average realized crude oil price during the first quarter was $47.71 per barrel, reflecting a decrease of 19% from the year-ago realization of $58.61. Moreover, the average realized natural gas liquids price was $6.62 per barrel, plummeting 72% from the year-ago period. Natural gas prices also declined 18% y/y to $1.36 per thousand cubic feet.
Balance Sheet & Capital Expenditure
As of Mar 31, the oil explorer had approximately $1.7 million in cash and cash equivalents. Whiting had a long-term debt of $2,839.4 million, representing a debt-to-capitalization ratio of 40.3%. In the reported quarter, the company spent $219 million on capital program.
Guidance Intact
Whiting keeps its 2019 production and capital expenditure guidance unchanged. The firm expects 2019 production in the range of 46.7-47.7 million barrels of oil equivalent. It expects total oil output to grow 15% on a year-over-year basis. The company forecasts 2019 capital spending in the band of $800-$840 million, with 86% of the total outlay directed toward drilling and completion activities.
Zacks Rank & Other Key Picks
Whiting currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the same industry can also consider other top-ranked players such as:
Devon Energy Corporation (DVN - Free Report) : Devon’s 2019 earnings are expected to grow 63.57% in 2019 on a year-over-year basis.
Murphy Oil Corporation (MUR - Free Report) : Murphy surpassed earnings estimates in three out of the trailing four quarters, with average positive surprise of 17.33%. The company’s 2019 earnings are expected to grow 12.70% this year.
Bonanza Creek Energy, Inc. : The company delivered average positive earnings surprise of 14.53% in the trailing four quarters. Bonanza Creek’s 2019 earnings are expected to grow 23.09% y/y in 2019.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Whiting Petroleum Corporation reported first-quarter 2019 adjusted net loss per share of 16 cents versus the Zacks Consensus Estimate of earnings of 20 cents. Lower-than-expected oil, natural gas liquids (NGLs) and gas prices led to the underperformance. Precisely, the company’s realized NGLs price was $6.62 a barrel, significantly lagging the Zacks Consensus Estimate of 18.78. Realized prices of oil and gas also missed the consensus estimate by 1.6% and 28%, respectively.
Further, its bottom line compared unfavorably with the year-ago EPS of 92 cents a share owing to weaker year-over-year commodity price realizations.
Total operating revenues came in at $389.5 million, missing the Zacks Consensus Estimate of $420 million. The top line also recorded a decline of 24.4% from the year-ago level of $515.1 million.
On a further discouraging note, the company’s discretionary cash flow of $199.5 million was lower than the capital spending of $219 million, translating into a negative FCF of $19.5 million. Notably, total operating expenses of the company increased 4.4% from the prior-year level to a total of $435.5 million in the quarter under review.
Production & Prices
Whiting’s total oil and gas production recorded a nominal y/y increase of 1.2% to 11.58 million oil-equivalent barrels (comprising 82% liquids).
The average realized crude oil price during the first quarter was $47.71 per barrel, reflecting a decrease of 19% from the year-ago realization of $58.61. Moreover, the average realized natural gas liquids price was $6.62 per barrel, plummeting 72% from the year-ago period. Natural gas prices also declined 18% y/y to $1.36 per thousand cubic feet.
Balance Sheet & Capital Expenditure
As of Mar 31, the oil explorer had approximately $1.7 million in cash and cash equivalents. Whiting had a long-term debt of $2,839.4 million, representing a debt-to-capitalization ratio of 40.3%. In the reported quarter, the company spent $219 million on capital program.
Guidance Intact
Whiting keeps its 2019 production and capital expenditure guidance unchanged. The firm expects 2019 production in the range of 46.7-47.7 million barrels of oil equivalent. It expects total oil output to grow 15% on a year-over-year basis. The company forecasts 2019 capital spending in the band of $800-$840 million, with 86% of the total outlay directed toward drilling and completion activities.
Zacks Rank & Other Key Picks
Whiting currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the same industry can also consider other top-ranked players such as:
Devon Energy Corporation (DVN - Free Report) : Devon’s 2019 earnings are expected to grow 63.57% in 2019 on a year-over-year basis.
Murphy Oil Corporation (MUR - Free Report) : Murphy surpassed earnings estimates in three out of the trailing four quarters, with average positive surprise of 17.33%. The company’s 2019 earnings are expected to grow 12.70% this year.
Bonanza Creek Energy, Inc. : The company delivered average positive earnings surprise of 14.53% in the trailing four quarters. Bonanza Creek’s 2019 earnings are expected to grow 23.09% y/y in 2019.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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