Whiting (WLL) Stock Up 4.4% Since Beating on Q3 Earnings
Shares of Whiting Petroleum Corporation WLL have increased 4.4% since the third-quarter 2021 earnings announcement on Nov 3. Apart from WLL’s better-than-expectedbottom-line and top-line results, the stock displayed an uptrend on the back of a major upturn in production and oil price realizations.
What Did Whiting Petroleum’s Earnings Unveil?
Whiting Petroleum reported third-quarter 2021 adjusted net income per share of $3.57, beating the Zacks Consensus Estimate of $2.93 and the sequential quarter’s earnings of $3.01, attributable to a significant increase in production and oil price realizations.
Total operating revenues came in at $401.01 million, ahead of the Zacks Consensus Estimate of $311 million. Moreover, the top line improved 13.9% from the quarter-ago level of $352 million.
On an encouraging note, the upstream energy operator’s free cash flow of $127.7 million was higher than the second-quarter 2021 figure of $111.3 million.
Production & Prices
Whiting Petroleum’s total oil and gas production reported a sequential increase of 0.5% to 8,472 thousand barrels of oil equivalent/ MBOE (comprising 79% liquids). Oil volumes at 4,763 thousand barrels (MBbl) slid 2% from the level achieved in second-quarter 2021 while natural gas output inched up 0.74% to reach 10,745 thousand cubic feet. Daily production averaged 92.1 MBOE, surpassing the Zacks Consensus Estimate of 90 MBOE.
The average realized crude oil price during the third quarter was $66.54 per barrel, reflecting a 4.9% rise from the quarter-ago realization of $63.46.
Whiting Petroleum Corporation Price, Consensus and EPS Surprise
Whiting Petroleum Corporation price-consensus-eps-surprise-chart | Whiting Petroleum Corporation Quote
Balance Sheet & Capital Expenditure
As of Sep 30, Whiting Petroleum had $12.9 million in cash, cash equivalents and restricted cash. The oil explorer’s long-term debt of $72 million represented a debt-to-capitalization of 5%. In the reported quarter, WLL spent $67 million on its capital program.
2021 Guidance
Whiting Petroleum aims to support its operations entirely from operating cash flow in the future. Based on this, WLL expects to be in a positive net cash position by the end of 2021 with no outstanding debt under its credit facility.
Zacks Rank & Other Stocks to Consider
Whiting Petroleum currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include EOG Resources EOG, Diamondback Energy FANG and ConocoPhillips COP, each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources reported third-quarter 2021 adjusted earnings per share of $2.16, beating the Zacks Consensus Estimate of $2.01. Strong earnings were driven by increased production volumes and a higher realization of commodity prices.
EOG announced a quarterly dividend of 75 cents per share, indicating an 82% increase from the previous level. The dividend will be paid out on Jan 28, 2022 to its shareholders of record as of Jan 14, 2022. EOG also declared a special dividend of $2 per share. Moreover, its board of directors updated its share repurchase authorization to $5 billion.
Diamondback Energy reported third-quarter 2021 adjusted earnings of $2.94 per share, which surpassed the Zacks Consensus Estimate of $2.81 and also the year-ago quarter’s earnings of 62 cents. FANG’s bottom line was aided by better-than-expected production.
Diamondback’s board of directors declared a dividend of 50 cents per share for the third quarter. This signifies an 11.1% hike in its quarterly payout from the previous level of 45 cents. The amount will be paid out on Nov 18, 2021 to its shareholders of record as of Nov 11. It also generated a free cash flow of $740 million in the third quarter.
ConocoPhillips reported third-quarter 2021 adjusted earnings per share of $1.77, comfortably beating the Zacks Consensus Estimate of $1.53. This outperformance is led by increased production volumes owing to the Concho acquisition and rising realized commodity prices.
Based in Houston, TX, this one of the world’s largest independent oil and gas producers’ capital expenditures and investments totaled $1.3 billion, and dividend payments grossed $579 million. ConocoPhillips’ net cash provided by operating activities was recorded at $4.8 billion, up from the year-ago figure of $868 million. COP generated a free cash flow of $2.8 billion in the third quarter.
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