Independent oil and gas company, Whiting Petroleum Corp. (WLL), has closed the offering of its senior notes worth $400 million, scheduled to mature in 2021.
Whiting Petroleum issued the notes at 101% of their par value, while the expected rate of return at maturity is 5.750%. The unsecured notes are guaranteed by Whiting Oil and Gas Corp., a wholly owned subsidiary of Whiting Petroleum.
The company received net proceeds of $399.3 million (after deducting the discount given to initial investors and issue-related expenses) from the offering, which will likely be utilized to finance its capital expenditure programs and meet other corporate expenses.
Headquartered in Denver, CO, Whiting Petroleum has an oil-focused asset base. The company acquires, exploits, develops and explores for crude oil, natural gas and natural gas liquids.
Whiting Petroleum trades in a 52-week range of $40.19 to $60.65. The exploration and production (E&P) company’s stock has been trading toward the higher end of the range for the greater part of the month with shares settling at $59.98 on Sep 27.
Whiting Petroleum has consistently surpassed the Zacks Consensus Estimate for the last three quarters with an average surprise of 8.24%. We expect this positive trend to continue in the forthcoming earnings release. The company also sports an impressive long-term earnings growth of 11.16%.
All these make Whiting Petroleum a Zacks Rank #2 (Buy) stock, implying that it is expected to perform better than the broader U.S. equity market over the next one to three months.
Meanwhile, one can also consider other stocks in the E&P industry such as Stone Energy Corp. (SGY) and Matador Resources Co. (MTDR) which sport a Zacks Rank #1 (Strong Buy) or Memorial Production Partners LP (MEMP) which currently holds a Zacks Rank #2 (Buy).