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Why Is Whiting Petroleum Corporation (WLL) Up 18.5% Since Last Earnings Report?

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It has been about a month since the last earnings report for Whiting Petroleum Corporation . Shares have added about 18.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Whiting Petroleum Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Whiting Petroleum Q1 Earnings and Revenues Beat Estimates

Whiting Petroleum Corporation reported first-quarter 2021 adjusted net income per share of $2.79, handsomely beating the Zacks Consensus Estimate of $1.45 and the sequential quarter’s earnings of $1.46 owing to significant improvement in commodity price realizations.

Total operating revenues came in at $307.4 million, ahead of the Zacks Consensus Estimate of $229 million. Moreover, the top line improved 44.8% from the quarter-ago level of $212.3 million.

On an encouraging note, the company’s free cash flow of $108.2 million was higher than the fourth-quarter 2020 figure of $89.3 million.

Production & Prices

Whiting Petroleum’s total oil and gas production reported a sequential decrease of 4.2% to 8,090 MBOE (comprising 79% liquids). In particular, oil volumes at 4,822 thousand barrels (MBbl) were down 5.6% from the level achieved in fourth-quarter 2020.

The average realized crude oil price during the first quarter was $53.24 per barrel, reflecting a 40.5% rise from the year-ago realization of $37.89. Moreover, the average realized natural gas liquids price was $17.28 per barrel, up 151.2% from the quarter-ago period. Further, natural gas prices were up 173.3% from the prior quarter to $2.05 per thousand cubic feet.

Balance Sheet & Capital Expenditure

As of Mar 31, Whiting Petroleum had approximately $24.7 million in cash and cash equivalents. The oil explorer’s long-term debt of $245,000 represented a debt-to-capitalization of 16.6%. In the reported quarter, the company spent $55.6 million on its capital program.

2021 Guidance

Whiting Petroleum, which aims to become a debt-free company by year-end, projects to generate $550 million in EBITDAX. Further, management anticipates free cash flow in excess of $300 million for 2021 if oil averages $55 per barrel.



 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 29.23% due to these changes.

VGM Scores

At this time, Whiting Petroleum Corporation has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Whiting Petroleum Corporation has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

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