Whiting Petroleum (NYSE: WLL) is exploring the sale of assets in North Dakota, according to Bloomberg sources. The assets include two gas processing plants and related assets in Williston Basin, which could fetch $500-$700 million.
Any thoughts on this?
That makes no sense. WLL cannot take on more debt. And if they did want to do a stock swap they would do it at today's stock price, not $7.
They. Are better off spending cash on acquisitions with Blackrock than in increasing the distribution.
WLL doesn't have the balance sheet for acquisitions, especially cash acquisitions that you suggest. It does however have the assets to be acquired.
Supply and demand are so close that they are irrelevant, in fact there are no good numbers on either that you can trust. Oil prices are plummeting because of speculation, leverage and liquidity.
Never going to happen. Iran is the only nation in the Middle East with the ability and the history to bring stability.
We got our answer on Friday. Technical support of 44 held. Rig counts continue to fall. Soon, the contango spread will narrow. Shorts started covering.
You mean the idiot who couldn't keep a jet in the air on five separate occasions? That's the kind of loser Imwant defending my country, yeah right.
I guess you haven't been around for as many decades as me. $50-$100 oil is the exception historically, not the rule. And oil prices have fallen for decades at times.
Could happen I suppose, or at least a stock market correction. Interesting that no sector seems to exhibit strength. It's looking more and more like the end of the commodity cycle, low prices for a long, long time. Which is actually good for economic growth.
Russian oil companies are doing just fine. Relatively little debt, huge cash positions, operating costs in rubles.
Long term it was a great acquisition. The stock swap avoided stock pricing risk. The assets it acquired are tremendous. So if the balance sheet is a little shaky, that's fine. At worst that makes it an acquisition candidate. Let's figure oil prices stay low for another 5 years. After that, WLL's value soars. If you don't like flat 5 year horizons then buy a major and enjoy the divvys.
Actually he is wrong. All previous big oil declines have had the same pattern: initial fall, recovery, fall, bottom. We just completed the second fall and are finding e bottom. Again, Cramer is wrong. He should be buying here with both hands.