Back to top

Image: Bigstock

Whiting (WLL) Stock Rises Since Q4 Earnings: Here's Why

Read MoreHide Full Article

The stock of upstream energy operator Whiting Petroleum Corporation has surged around 30.8% since its fourth-quarter 2021 earnings announcement on Feb 23. Apart from the top and bottom-line outperformance, the positive investor reaction could probably be attributed to the general bullishness associated with the surge in commodity prices and news of its tie-up with Oasis Petroleum.

The merged entity will have the leading Williston Basin position in North Dakota and Montana, with top-tier assets spanning over 972,000 net acres and an output of about 167,800 barrels of oil equivalent per day, an improved free cash flow generation and a substantial scale of operations.

Now, let’s get back to the earnings discussion.

What Did Whiting Petroleum’s Earnings Unveil?

Whiting Petroleum reported fourth-quarter 2021 adjusted net income per share of $4.23, handsomely beating the Zacks Consensus Estimate of $3.68 and the sequential quarter’s earnings of $3.57 owing to better-than-expected production and significant improvement in oil prices.

Total operating revenues came in at $473.4 million, ahead of the consensus mark of $349 million. Moreover, the top line rose 18% from the quarter-ago level of $401 million.

On an encouraging note, the company’s free cash flow of $156.3 million was higher than the third-quarter 2021 figure of $127.7 million.
 

Whiting Petroleum Corporation Price, Consensus and EPS Surprise

Whiting Petroleum Corporation Price, Consensus and EPS Surprise

Whiting Petroleum Corporation price-consensus-eps-surprise-chart | Whiting Petroleum Corporation Quote

Production & Prices

WLL’s total oil and gas production reported a small sequential increase of 0.7% to 8,535 thousand barrels of oil equivalent/ MBOE (comprising 80% liquids). Oil volumes at 4,871 thousand barrels (MBbl) increased 2.3% from the level achieved in third-quarter 2021 but natural gas output fell 4.1% to reach 10,303 thousand cubic feet. Daily production averaged 92.8 MBOE, edging up from the previous quarter’s 92.1 MBOE and surpassing the Zacks Consensus Estimate of 90 MBOE.

The average crude oil price received during the fourth quarter was $75.75 per barrel, reflecting a 13.8% rise from the quarter-ago receipt of $66.54. Meanwhile, the average natural gas price jumped to $3.68 per thousand cubic feet (Mcf) from $2.42 in the July-September period.

Balance Sheet & Capital Expenditure

As of Dec 31, Whiting Petroleum had approximately $41.2 million in cash, cash equivalents and restricted cash, with no long-term debt. In the reported quarter, the company spent $66.2 million on its capital program.

Zacks Rank & Stock Picks

Whiting Petroleum currently carries a Zacks Rank #2 (Buy).

Apart from WLL, investors interested in the energy sector might look at Centennial Resource Development , ConocoPhillips (COP - Free Report) and Marathon Oil (MRO - Free Report) . Each of the companies sports a Zacks Rank #1 (Strong Buy).

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

Centennial Resource Development: Centennial Resource Development is valued at some $2.5 billion. The Zacks Consensus Estimate for CDEV’s 2022 earnings has been revised 6.3% upward over the past 30 days.

Centennial Resource Development, headquartered in Denver, CO, delivered a 30% beat in Q4. CDEV shares have gained around 72.7% in a year.

ConocoPhillips: ConocoPhillips is valued at around $131.6 billion. The consensus estimate for COP’s 2022 earnings has been revised 17.1% upward over the past 60 days.

COP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 12.6%. ConocoPhillips has rallied around 72% in a year.

Marathon Oil: Marathon Oil has a projected earnings growth rate of 83.4% for this year. The Zacks Consensus Estimate for MRO’s 2022 earnings has been revised 9.5% upward over the past 30 days.

Marathon Oil beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 37.4%. MRO shares have gained around 75.7% in a year.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ConocoPhillips (COP) - free report >>

Marathon Oil Corporation (MRO) - free report >>

Published in