Not only are you both rude, you're short a market about to rip to the upside. ROSE is going a lot higher and fast. XOP was up over 4% today. When it does, I'm sure you fools will crawl back under your rocks.
Mgmt bought over $1 million worth of stock in February at market prices, above today's price. IR presentation this week. Wonder if we hear something positive on well results.
They just did an equity offering. CapEx was cut to less than $300 million and LT debt is years-out. Honestly, if you have nothing useful to say, say nothing.
400k per well is the minimum. Shale wells especially in the Bakken have much higher EURs than 400k , but Niobrara maybe less. (Most of Whiting's acreage is in the Bakken.) 400k average is fair. They said 10,000 drillable. They wouldn't be drilling those wells unless the EURs were sufficient to justify the expense. When oil was $100, Whiting was a $90 stock. If you buy them at $55-60, you bought the company paying a 30% discount to that price, instead of the premium that would have been required to buy them this summer. Exxon has the balance sheet to sit on the land and do nothing with it until prices recover. They need inventory and Whiting has it.
25,000 drillable locations last I checked per IR presentation. If you assume 400k barrels per location, the resource is 10 billion barrels. Exxon would be interested in a resource that size. I could see $1.50 per resource barrel less debt gets you a takeout price around $55-60.
Warburg and two insiders are buying half of the offering. They are in the deal too, and that means it's not dilutive from their perspective. It lowers debt:ebitda to a very manageable 1.5X, and leads the way to a buyout. But I agree it would be better if they waited.