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Whiting Petroleum Prices Notes

Zacks Equity Research

Independent oil and gas company, Whiting Petroleum Corp. (WLL) announced the pricing of senior notes worth $400 million to qualified institutional buyers. The company added that the sale of the notes will likely be settled on Sep 26, 2013.  

The senior notes will carry an interest rate of 5.75% and are scheduled to mature in 2021. The notes will be sold through a private placement at 101% of the face value.

The unsecured notes will be guaranteed by Whiting Oil and Gas Corp., a wholly owned subsidiary of Whiting Petroleum. Net proceeds from the offering are expected to be utilized to finance the company’s capital expenditure programs and meet other corporate expenses.
Whiting Petroleum also announced that it plans to redeem the earlier offered 7.0% senior subordinated notes, due in 2014, on Oct 31. The holders of the notes will receive a redemption price comprising of the full principal amount, redemption premium as mentioned in the indenture and unpaid interest till the redemption date.

The company plans to fund this redemption through the proceeds generated from another one of its offerings worth $1.9 billion that ended on Sep 12.

On Sep 20, Whiting announced the completion of the Williston Basin acquisition for a consideration of $260 million. Spread across 17,282 net acres, the company estimates the property to hold proved reserves of 17.1 million barrels of oil equivalent and expects it to contribute approximately 2,420 barrels of oil equivalent per day to production.

Headquartered in Denver, CO, Whiting Petroleum is a Delaware corporation having an oil focused asset base. The company acquires, exploits, develops and explores for crude oil, natural gas and natural gas liquids.
Whiting Petroleum currently holds a Zacks Rank #2 (Buy), 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 consider other stocks in the E&P industry such as Range Resources Corp. (RRC), Carrizo Oil & Gas Inc. (CRZO) and Matador Resources Co. (MTDR) as attractive investments. All these sport a Zacks Rank #1 (Strong Buy).

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