|Bid||40.86 x 1400|
|Ask||40.91 x 800|
|Day's Range||40.12 - 41.74|
|52 Week Range||18.56 - 56.47|
|Beta (3Y Monthly)||4.11|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 30, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||60.24|
Whiting Petroleum (WLL) saw a rating update and three target price revisions in the week that ended on October 12. Capital One Securities downgraded WLL to an “equal-weight,” which is equivalent to a “hold,” from an “overweight,” which is equivalent to a “buy.” The stock’s target price revisions in the week included the following: BMO Capital Markets: to $60 from $55 Morgan Stanley: to $67 from $68 Raymond James: to $65 from $67
So far in this series, we’ve looked at Northern Oil & Gas (NOG), Denbury Resources (DNR), California Resources (CRC), W&T Offshore (WTI), Whiting Petroleum (WLL), and Penn Virginia (PVAC). In this article, we’ll focus on Viper Energy Partners (VNOM).
Whiting Petroleum (WLL), an exploration and production company operating in North Dakota and the Williston Basin, has seen its stock fall ~20% recently, underperforming the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). WLL’s sharp correction could be due to its high crude oil exposure—crude oil and natural gas liquids together formed ~84% of the company’s total production in Q2 2018.
Crude oil has been very volatile recently. WTI reached a new four-year high of $76.40 per barrel on October 3, amid supply concerns due to looming Iran sanctions. It then retreated on reports of a possible increase in supplies from Saudi Arabia and Russia to compensate for the loss of Iranian supplies. This retreat was followed by another major sell-off, with US crude falling below $71 per barrel on October 11 due to global markets correcting amid concerns over lower global growth and higher US Treasury yields.
On October 5–12, the United States Oil ETF (USO) and the United States 12-Month Oil ETF (USL) both fell 3.6%. The ProShares Ultra Bloomberg Crude Oil ETF (UCO) fell 7.7%. These ETFs track US crude oil futures.
On October 5–12, US crude oil November futures fell 4% and closed at $71.34 per barrel on October 12. Bearish inventory data might have pulled oil prices in the last week.
The Zacks Analyst Blog Highlights: Hess, Northern Oil, California Resources and Whiting Petroleum
On October 10, US crude oil November futures fell 2.4% and closed at $73.17 per barrel. Crude oil has struggled to settle above the $75 mark since October 4. In the last trading session, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) fell 3.3% and 3.1%, respectively. On October 10, the Energy Select Sector SPDR ETF (XLE) fell 3.1%. Bearish sentiments might have led the broad fall in the market.
EIA's October Short-Term Energy Outlook forecasts WTI to average $73.05 during the next few months, not far from the commodity's recent highs.
WLL credit default swap spreads are decreasing and near the lowest level of the last three years, which indicates improvement in the market's perception of the company's credit worthiness. Please send all inquiries related to the report to email@example.com.
In the week ending September 28, US crude oil inventories were at their five-year average compared to a deficit of two percentage points in the week prior. Oil prices and the inventories spread usually move inversely, as you can see in the following chart. If the inventories spread expands further into positive territory, it might drag oil prices in the coming weeks. The inventories spread is the difference between inventories and their five-year average.
On October 8, US crude oil November 2018 futures closed ~$2.2 above the November 2019 futures. On October 1, the futures spread was at a premium of ~$3.2. Between October 1 and October 8, US crude oil November futures fell 1.3%.
Ring Energy (REI), a crude oil–weighted exploration and production company focused in the Permian Basin, was the weakest upstream stock in the week ending October 5. Ring Energy fell 17.4% last week. The decline could be due to a rating downgrade and a target price cut at Morgan Stanley.
Whiting Petroleum Corporation (WLL) will release its third quarter 2018 financial and operating results on Tuesday, October 30, 2018 after the market closes. A conference call with investors, analysts and other interested parties is scheduled for 11:00 a.m. ET (10:00 a.m. CT, 9:00 a.m. MT) on Wednesday, October 31, 2018 to discuss Whiting's third quarter 2018 financial and operating results. Participants are encouraged to pre-register for the conference call by clicking on the following link: http://dpregister.com/10125055.
In the week ending September 28, W&T Offshore (WTI), an exploration and production company involved in offshore drilling, was still among the top upstream gainers for the second consecutive week. W&T Offshore rallied 19.0% last week. The company gained ~42% last month. Overall, W&T Offshore has gained 191.2% since the beginning of 2018. The company is among the top upstream gainers during the past year. To learn more, read These Upstream Stocks Have Generated Maximum Total Returns.
On October 1, US crude oil November futures closed ~$3.2 above the November 2019 futures. On September 24, the futures spread was at a premium of $3.42. On September 24–October 1, US crude oil November futures rose 4.5%.
On September 21–28, the United States Oil ETF (USO) rose 3.7%, the United States 12-Month Oil ETF (USL) rose 4.6%, and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) rose 7.5%. These ETFs track US crude oil futures.
So far in this series, we have discusses the top four upstream companies based on their one-year returns—Denbury Resources (DNR), California Resources (CRC), W&T Offshore (WTI), and Whiting Petroleum (WLL). In this part, we’ll discuss Viper Energy Partners (VNOM), which is fifth in terms of one-year returns.
Whiting Petroleum (WLL), a North Dakota and Williston Basin focused exploration and production company, is fourth in terms of one-year returns. The company has generated total returns of 137.5% in the past year. All of the returns have been in the form of price appreciation. Similar to Denbury Resources (DNR), Whiting Petroleum is a heavy crude oil–weighted upstream stock. Together, crude oil and natural gas liquids formed ~84% of the company’s total production during the second quarter.
W&T Offshore (WTI), an exploration and production company involved in offshore drilling, has seen a strong rally since the beginning of September. The company has risen 31.2% in September. W&T Offshore’s strong rally could be attributed to the gains in crude oil prices and the recent announcement about divesting a few of its non-core assets. Overall, the company has gained ~170% in the past year.
US crude oil has seen a strong rally since the beginning of September. US crude oil breached $72 per barrel. WTI has risen more than 3% in September. The recent positive sentiment in US crude is due to supply concerns amid Iran sanctions. For a recent update and the outlook on US crude oil prices, read Bears Beware: Crude Oil Approaches New High.
North Dakota's daily crude production in July broke the previous all-time high set in May, while natural gas output and producing wells also hit records.
In the week that ended on September 7, US crude oil inventories fell 3% below their five-year average. In the previous week, inventories were on par with their five-year average.