New Higher Oil Prices & Internal Cost Controls-Indicate Far Higher Future Quarterly Distributions-WHZ-!!!
There is a new trend at play for Whiting USA Trust II. The worm has turned as 'they' would say...even though average prices for oil and gas liquids came in slightly higher than last quarter-costs dropped dramatically! Too half way through the period oil prices in particular steadied.
Inspection of current oil prices since June 30th, 2013....indicate that we may be looking at an average of perhaps as much as $8.00 or more-again per Bbl. from this latest reported quarter...ended June 30th.
I am expecting the next payout to come in between .80 and .88 cents...even further north of what we currently see at current. I am saying this as oil only needs to average...$96.-$98.-Dols. a bbl or more...even an average at $102....might get out distribution pushing up towards .85 or .90 cents...this kind of development would likely have the effect of the trading market for WHZ shares moving up towards $18. or more....my projection within the next 2-4 months out. All capital losses would have been mitigated as well---assuming you have dollar cost averaged over the last 4 months or so.
We have a rare opportunity to significantly 'beat-the-market for the balance of this year...too any further increase in economics for us here in the U.S. in terms of further improvement....say 3% G.D.P., and were liable to be looking at $110.+ for oil....
Comments are most welcome.
p.s. I understand quite a few WHZ shares have been sold short...whoops...welcome to the 'Long-Party'!
Average prices for March April May were about $93,67. Average prices for June, July, August look to be
about $98.67 or 5.4% more. Last Dividend payable end of month = $0.74 which was way up. Next will be
perhaps $0.80 Current WHZ should be at least $14 not $12,60.
I agree...we could for sure 'top' .80 cents...thinking .82 cent area.....much has to do with sustainable crude prices at or near current levels....as to pricing for WHZ.....I think it should be higher by far than current levels....where-who knows....
Average sale price for oil was almost $6 higher than last Q, so i wouldn't call it "slightly higher". Still, I am very pleased about the distribution and the cost control, and am looking forward for the next distribution.
costs always bounce around from quarter to quarter based on all sorts of factors including weather, and there are some costs which are annual in nature. You can't conclude anything about 'cost control'.