WLL

Whiting Petroleum Corp

Energy


Presented:04/13/2015
Price:$35.00
Cap:$7.07B
Current Price:$68.03
Cap:$2.59B

Presented

Date04/13/2015
Price$35.00
Market Cap$7.07B
Ent Value$12.63B
P/E Ratio66x
Book Value$34.12
Div YieldN/A
Shares O/S0.00M
Ave Daily Vol10,400,000
Short Int7.75%

Current

Price$68.03
Market Cap$2.59B
Whiting Petroleum Corporation, an independent oil and gas company, acquires, explores, develops, and produces crude oil, natural gas liquids, and natural gas in the Rocky Mountains and Permian Basin regions of the United States. It sells oil and gas to end users, marketers, and other purchasers. As of December 31, 2014, the company’s estimated proved reserves totaled 780.3 million barrels of oil equivalent; and had interests in 4,471 net productive wells across approximately 886,700 net developed acres. Whiting Petroleum Corporation was founded in 1980 and is based in Denver, Colorado.

Publicly traded companies mentioned herein: Concho Resources Inc (CXO), Continental Resources Inc (CLR), Oasis Petroleum Inc (OAS), Pioneer Natural Resources (PXD), Whiting Petroleum Corp (WLL)

Highlights

The presenter is long shares of Whiting Petroleum (WLL) following the restructuring of its balance sheet in late March, 2015. The company raised $3 billion via a combination of new debt and equity and now has ~$4 billion of liquidity. This deal effectively mitigated “legitimate liquidity risks” following the acquisition of Kodiak (completed in December, 2014), and with shares trading in the mid-$30s the stock is “the cheapest” oil E&P he could find based on almost any measure (EV/ EBITDA, cash flow, etc.). “To a certain extent, [investors] have to be willing to believe that oil is heading higher from the low-$50s to take a position in WLL,” he added. His belief is that oil is heading higher over the next 12-24 months, and downside risk in shares of WLL is limited.

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