It was a mediocre report. The street knew earnings would far exceed analysts' estimates. Production was ok, but only in line with expectations. The free giveaways to management and employees based on production (not earnings) hurt, but the biggest problem was the differential. Their realized price despite a Nymex average of nearly $106 was under $98. Their interest rate on debt is reasonable. Top line revenue was good. All in all, it was decent, but it will take some good news on the CC tomorrow to move the stock up. The big upside is their new completion technique, which should help increase production, revenue, and profits in Q4 and 2014.
It's a 2 1/2 times volume one percent drop that was preceded by a 3 % drop yesterday which was precipatated by 5% oil drop this week. Mr. Markets digesting it as yet. But it will come out of the wash. Just see. A double last years profit on a 57 per cent increase in revs should be enough tide to get the laundry clean. Even those tough ole oil stains.
The earnings were good, but you need to realize the stock has run up 26% from the last earnings report and is up 44% from the year ago period.
Based on guidance and current growth rates along with increasing debt I see the stock settling in the $57 range. The current growth rate of the economy and falling oil prices do not bode well for WLL figures either. JMO.