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Is a Beat in Store for Whiting Petroleum (WLL) in Q3 Earnings?

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Whiting Petroleum Corporation  is set to release third-quarter 2021 results on Nov 4. The current Zacks Consensus Estimate for the to-be-reported quarter’s profit is $2.93 per share and for revenues is $310.70 million.

Let’s delve into the factors that might impact this independent energy player’s results in the September quarter. But it’s worth taking a look at Whiting Petroleum’s June-quarter performance first.

Highlights of Q2 Earnings & Surprise History

In the last reported quarter, this Denver, CO-based upstream operator reported adjusted net income per share of $3.01, beating the Zacks Consensus Estimate of $2.45 and the sequential quarter’s earnings of $2.79 owing to better-than-expected production and a 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.

As far as earnings surprises are concerned, this oil and gas producer’s bottom line beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 3,711.17%. This is depicted in the graph below:

Factors to Consider

In the second quarter of 2021, the company’s average realized crude oil price was $63.46 per barrel, indicating a 19.2% rise from the quarter-ago realization of $53.24. The uptick is most likely to have continued in the third quarter, courtesy of the sharp rebound in oil prices that repeated the multi-year highs following the progress in vaccination and the ongoing macroeconomic recovery. This price rise is likely to have driven the revenues and cash flows of Whiting Petroleum.

Whiting Petroleum’s total oil and gas production in the second quarter of 2021 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) inched 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, a trend that most likely continued in the third quarter. The production boost is likely to have bolstered the third-quarter revenues and cash flows of Whiting Petroleum.

Management said during the second-quarter earnings release that it anticipates a free cash flow in excess of $425 million for 2021 if oil averages $60 per barrel. With the commodity price picture looking upbeat, Whiting Petroleum currently looks well-positioned to meet its target. This positive outlook is likely to get reflected in Whiting Petroleum’s September-quarter results.

What Does Our Model Say?

Our proven Zacks model predicts an earnings beat for Whiting Petroleum this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Whiting Petroleum has an Earnings ESP of +5.63%.

Zacks Rank: Whiting Petroleum currently sports a Zacks Rank of 1, which increases the predictive power of ESP.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some other firms worth considering from the  energy  space with the right combination of elements to beat on earnings this season are as follows:

Targa Resources Corp. (TRGP - Free Report) has an Earnings ESP of +4.00% and is Zacks #1 Ranked at present. The firm is scheduled to release earnings on Nov 4.

TC Energy Corporation (TRP - Free Report) has an Earnings ESP of +2.53% and is presently Zacks #3 Ranked. The firm is scheduled to release earnings on Nov 5.

EOG Resources, Inc. (EOG - Free Report) has an Earnings ESP of +2.16% and a Zacks Rank #1, currently. The firm is scheduled to release earnings on Nov 4.


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