Ahead of the Bell: Whiting Petroleum

Analyst sees improved production, raises earning estimate, price target for Whiting Petroleum

• On 9:30 am EDT, Tuesday September 22, 2009

HARTFORD, Conn. (AP) -- Whiting Petroleum Corp. is producing more oil than expected from its North Dakota site and may even increase its 2009 guidance when it posts third-quarter results, an analyst said Tuesday as he raised his earnings estimate and price target.

KeyBanc analyst Jack N. Aydin reiterated a "Buy" rating for the shares of the Denver-based independent oil and gas company.

Whiting Petroleum earlier this month disclosed encouraging initial production rates at its Bakken site in North Dakota, he said. And he expects a strong update for the quarter ending Sept. 30 when Whiting Petroleum posts its results in late October or early November.

Aydin increased his third-quarter production estimate to 55.3 million barrels of oil equivalent a day from 54.3 "to incorporate better than expected production."

For fiscal 2009, he estimates production of about 55 million barrels of oil equivalent a day, which would be up nearly 15 percent year-over-year.

With stronger than expected third-quarter production, "we would not be surprised if the company increased its full year guidance to a range that is more in line with our full-year estimate," Aydin said.

He increased his price target to $67 from $60.

Aydin raised his third-quarter profit estimate to 29 cents per share from 13 cents per share and increased his 2009 estimate to a loss of 23 cents per share from a loss of 46 cents per share.

He also boosted his 2010 per-share earnings estimate to $2.06 from $1.97.

Analysts surveyed by Thomson Reuters expect, on average, profit of 11 cents per share in the third quarter, a 22 cent-per-share loss for 2009 and profit of $2.38 per share for 2010.

(This version Corrects day of week in 1st graf)

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