All of your analysis is about increasing production. But demand is soft and any rise in demand will be met with supply. Look at a historic chart of WLL against oil prices - there are some ups and downs, but it's relatively flat. There is NO reason to believe we'll see huge prices in oil down the road. Think about it - a 25% increase in prices only gets you to $60 a barrel. And what would cause a 25% increase? Nothing really. The entire mid-east has blown up in the past 5 years and those folks are still pumping oil. Reserves are simply going to be repriced at much lower oil prices than they are today and stocks will be priced accordingly.
Company priced its share value at $30 this week. Why should the market pay anymore than that? This stock followed oil prices until 2009 when it began its ascent based on speculation and cheap debt. Now it appears to have reset with correlation back to oil prices. I don't see how demand will ever recover enough to bring back the speculators.
Debt to Ebitda declined but more importantly oil supply will outstrip demand for years. Oil is no longer scarce even if the ME blows up.
That all depends on the price of the convertible v. the stock. Doesn't always happen the way you put it, in fact can happen just the opposite.
Please, not a red herring. Address the case: a tribal primitive having a dream about a guy in heaven, covered with blood, and sitting astride a white horse. It's horse pucky.
The Houtha can only be described as Shia if you reaaaaaalllllly stretch the definition. They have no historic alignment with Iran. This is about two overthrown presidents duking it out.
Why is it that every time a crisis hits, you Bible literalists roll out some Revelation quote spoken by a tribal primative before the age of reason?
Iran is not going to get pulled into this in any big way. They are not allied with the Houthis in any meaningful way. This is between two ousted presidents, one supported by the Yemeni military and the Houthis, the other supported by the CIA and by way of connection, the Sauds. In attacking the Houthis, the U.S. and Saud's leave al Qaeda in Yemen freer to grow. We are meddling in maternal politics, expecting once again to have our cake and eat it. That will not turn out well, and whoever ultimately comes to power will be radicalized. Seems to be the way we operate these days.
Here, ladies and gentlemen, I have two barrels of oil, one produced by violent foreigners living in a 12th Century world where your sons and daughters die for their greed, and the other produced in relative peace by American entrepreneurs. Which do you prefer to buy and pay more for? Let's start the bidding.
The Saudi military is about as effective as the French military. What are they using - Pakistani mercs? Wait until a few Saudis are beheaded on live streaming video. The rest will drop their weapons and run home.
Or artillery, or tanks, or missiles, or walking the extra mile. Can't believe we support these 9-11 clowns.
Morningstar tends to be on the high side. However, some other firm, can't remember exactly who, came out with a $41 target, which was lower then their previous.
On March 23, Whiting Petroleum announced the issuance
of a combined $2.8 billion in debt and equity securities
meant to shore up the firm's balance sheet in the wake of
the company's ill-timed, debt-financed acquisition of
Kodiak Oil & Gas and in the face of a continued slump in
The securities issued include 35 million new shares of
common stock at $30 per share (increasing the company's
share count by approximately 20%, to more than 200
million), $1 billion in convertible senior notes due 2020 (at
a conversion price of $39 per share, implying an additional
26 million shares potentially issued upon conversion), and
$750 million of senior notes due 2023.
The net impact of these issuances is a $950 million
reduction in Whiting's pro forma net debt levels as of
March 31, 2015. Accordingly, we now estimate the
company will end 2015 with a net debt-to-EBITDA level
of 3.3 times, versus an uncomfortably high level of 4.0
times had Whiting not undertaken these balance sheet
The combined effect of a reduction in net debt and a higher
share count leads us to reduce our fair value estimate for
Whiting by $6, from $51 to $45.
Are you nuts? Look at the tecord volume today and it couldn't even break through technical support of 30. WLL will never see 25 a share.