WLL up .82, WHX up .45, and WHZ up .52 as I type this. I believe WLL reports after the market close today. Maybe this has something to do with the runnup. If the results are not what the street expects, could be a bust tomorrow. Any ideas?
WLL reported .04 beat on eps,
Production was 4% over fourth quarter and 12% over 2012q1. Total production was 87% liquids. That coupled with higher prices bodes well for our trust.
Now I am cautiously more bullish. .75+ on the dist. and restoration of a high teens trading range.
One of the headlines was a completed well flowing at 861bpd. With 24x60minutes in a day, that is just over half a barrel[42gal] a minute, .60 which is 25gallons per minute. Ten times the flow of your shower head or 3 times the flow of your residential garden hose. I think that field is east of Denver. Some initial flows in the Baaken are ten times that.
In terms of revs, 861 x their average price ~75 = 64k per day gross revenue. I think Whiting began the practice of drilling four laterals from each well pad, it cuts costs.
What do landowners get in royalties? At one percentage point it equates to 640/day. If it pumps all year long, that is 230k One percentage point is seventy-five cents a barrel. A rough standard is 12.5% with many contingencies and costs.
So, you see, a modest well can very lucrative for the landowners who are perched over the field.
I looked at the WHX board. They are all in lah lah land. Gambling that their five dollar stock will hold the over price long enough to pay off. It went up another buck from 8.50!
They must figure on a 1.20 distribution each quarter to justify the amortization.