|Bid||0.8300 x 800|
|Ask||0.8500 x 39400|
|Day's Range||0.7986 - 0.9800|
|52 Week Range||0.6800 - 30.9400|
|Beta (5Y Monthly)||3.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 28, 2020 - May 03, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||4.71|
Whiting Petroleum Corporation Takes Measures to Preserve Liquidity
Whiting Petroleum Corporation Adopts Shareholder Rights Plan to Protect the Availability of its Net Operating Losses
Moody's Investors Service ("Moody's") downgraded Whiting Petroleum Corporation's (Whiting) Corporate Family Rating (CFR) to Caa1 from B1, its B1-PD Probability of Default Rating (PDR) to Caa1-PD and its B2 senior unsecured notes rating to Caa2. Whiting's Speculative Grade Liquidity Rating has been downgraded to SGL-4 from SGL-3. "Whiting faces daunting prospects in its effort to refinance its near-term maturities, which could compel it to pursue a distressed exchange of its maturing debt," commented Andrew Brooks, Moody's Vice President.
Given the oil price freefall, Whiting Petroleum (WLL) instantly lowers its development activity and plans to keep a low profile until a sharp recovery is achieved in commodity price.
Whiting Petroleum and QEP Resources joined the growing list of Colorado oil and gas producers cutting capital spending to weather the economic storm hitting the industry. Whiting Petroleum Corp. (NYSE: WLL) plans to spend about $185 million less than what it previously budgeted. The pullback is expected to have a “moderate” impact on the company’s project oil and gas total production for the year, Whiting said.
EOG Resources Inc, Whiting Petroleum Corp and EQT Corp cut drilling activity and budgets on Monday, becoming the latest North American shale producers to be hit by lower oil prices, which fell below $30. Oil producers are trying to shore up cash as demand dwindles because of the global coronavirus outbreak and the double-whammy of a price war that threatens shale companies, which had budgeted for oil prices at $55 per barrel to $65 per barrel in 2020.
Shares of Whiting Petroleum Corp. plummeted 40% in premarket trading Monday, after the oil and gas company said it was cutting its 2020 capital budget by about 30%. The company said it now expects capital expenditures of $400 million to $435 million, which at the midpoint is $185 million less than its prior guidance. The company said it expects to drop one rig and one completion crew within the next month. Whiting said it expects the capex cut to have a "moderate" impact on 2020 production. "In light of the volatility in commodity prices, we have immediately reduced our development activity and plan to maintain a lower level until we see a sustained commodity price recovery," said Chief Executive Bradley Holly. "This new spending plan preserves our liquidity while improving capital efficiency." The stock has plunged 55.5% over the past month through Friday, while crude oil futures has tumbled 42.5% and the S&P 500 has shed 19.8%.
Whiting Petroleum Corporation Prioritizes Cash Flow and Announces $185 Million Reduction to 2020 Capital Budget
The stock market dive has been especially rough on oil and gas producers in Colorado, which collectively lost more than $63 billion in market value since the start of 2020. The companies' share prices have been hit by double shocks. Experts projected a drop in global oil demand due to the novel coronavirus epidemic slowing major economies.
Cowen Senior Analyst Gabriel Daoud joins On The Move to discuss the firm’s decision to downgrade multiple oil and gas companies following OPEC's failure to strike a deal on production cuts.
Plunging oil prices and the economic fallout from the global coronavirus outbreak are setting the stage for a potential wave of debt restructurings and bankruptcies, especially in the energy and services sectors, according to company advisers and analysts. Oil prices dropped by a third over the weekend after Saudi Arabia discounted its crude and signaled it would raise output, fueling concerns about the survival of heavily indebted oil and gas exploration and production companies. Oasis Petroleum Inc, Chesapeake Energy Corp and Whiting Petroleum Corp were among those hardest hit, with their stocks and bonds losing as much as half their value.
(Bloomberg) -- Tumbling oil prices around the world are shining a light on the U.S. shale producers that are most at risk because of heavy debt loads.“I wouldn’t be surprised to see 55 to 60 bankruptcies” this year, compared with 50 last year, said Raoul Nowitz, managing director of restructuring and distressed asset support services at SOLIC Capital. That number may grow if the price slump persists for an extended period, he said.Chesapeake Energy Corp.Once a titan in shale, Chesapeake was spiraling downward even long before Monday’s market rout after it and rival drillers flooded North America with excess gas. Chief Executive Officer Doug Lawler recently told investors the survival strategy for his company includes selling assets, even though the acquisition market already is glutted with gas holdings.Read More: Oil-Price Collapse Seen Battering U.S. Investment, EmploymentChesapeake’s push to transition into an oil producer could prove pointless now that oil has dropped more than gas year to date. The company bought time in December by swapping some debt but it still has $192 million of bonds coming due in August, out of a total debt load of more than $9 billion.Unit Corp.Heightened refinancing and liquidity risks led Fitch Ratings to downgrade Unit Corp. in January because of the Tulsa, Oklahoma-based explorer’s “prolonged operational deterioration” since a bond exchange announcement that same month.The company, which generates most of its output from gas, announced last month that CEO Larry Pinkston will retire at the end of March and will be replaced by Chief Operating Officer David Merrill.Ultra PetroleumThe Colorado driller disclosed last week that it held talks with holders of its long-term debt in an effort to reduce leverage. That came after Ultra Petroleum Corp. said in November it had hired the Houston boutique energy bank Tudor, Pickering, Holt & Co. to evaluate strategic alternatives that would include the possibility of a corporate sale, merger or other transactions.Ultra filed for bankruptcy in 2016 and emerged the following year, just as the shale patch was beginning to crawl out of what was then the worst crash in a generation. The company’s bank recently cut Ultra’s credit line and borrowing base. Ultra shares have fallen 85% in the past year and traded for 8.5 cents on Monday.California Resources Corp.While California Resources announced last month an exchange offer for some of its bonds that could reduce total debt by $1 billion and extend the maturity of another $700 million by six years, the collapse in oil prices may make lenders balk at extending more credit to the state’s largest oil producer.The company may require Brent futures, the global crude benchmark, to be higher than $65 to generate free cash flow while maintaining output, Spencer Cutter and Leon Huang, analysts at Bloomberg Intelligence, wrote last month in a report.Whiting PetroleumAn oil explorer focused on the Bakken Shale in North Dakota, Whiting Petroleum Corp. has faced headwinds as low crude prices squeeze profits. The company announced last year that it would fire one-third of its workforce and scale back production targets after posting a surprise quarterly loss.Whiting has about $1 billion of debt coming due over the next year, including about $260 million of convertible notes that mature in April. It’s working with advisers to come up with strategic options, but investors have their doubts: its notes due March 2021 are trading around 18 cents on the dollar with a yield of 286%, which suggests they will never be repaid. Shares have lost 89% of their value so far this year.To contact the reporters on this story: David Wethe in Houston at firstname.lastname@example.org;Allison McNeely in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Joe Carroll, Christine BuurmaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- It’s often said that inflation is the bogeyman for bond traders. Indeed, accelerating price growth diminishes the value of each fixed interest payment over the years. Investors would be better off buying assets that increase along with prices, like real estate or equities, in theory.This week, bond traders are learning that the prospect of deflation can be just as painful.The benchmark 10-year U.S. Treasury yield tumbled by as much as 45 basis points on Monday to as low as 0.3137%. That’s more than 100 basis points below the record level of 1.318% that stood as recently as last month. Sure, anyone who owned U.S. Treasuries heading into 2020 has benefited from the incredible rally. But it leaves future investors with a grim reality of rock-bottom returns, putting the U.S. closer than ever to the likes of Germany and Japan. Last week, investors flocked to Treasuries purely as a way to protect against a swift slowdown in global economic growth because of the coronavirus outbreak. This week it’s something more. The price of oil crashed more than 30% after Saudi Arabia declared a price war and the OPEC+ alliance shattered. So too did break-even rates, which are the bond market’s measure of inflation expectations. The 10-year rate collapsed more than 30 basis points, the steepest decline since November 20, 2008, to about 1 percentage point, the lowest since March 2009. The five-year rate is 0.8 percentage point and the two-year rate is less than 0.5 percentage point.That’s bad news for the Federal Reserve, which is desperate to get inflation consistently at or above its 2% target after years of failing to do so. While oil prices are historically volatile, a shock of this magnitude can’t be dismissed by simply focusing on the “core” measures that exclude energy and food prices. It will reverberate through Main Street and Wall Street alike.The sharp drop in oil prices is even worse news for credit markets. The Markit CDX North America High Yield Index, which tracks the cost of insuring against defaults, surged on Monday by 145 basis points, the largest increase ever in data going back to 2012. It’s within striking distance of the highest level on record. The investment-grade fear gauge jumped by the most since Lehman Brothers crumbled.More specifically, significantly lower oil prices have immediate consequences for speculative-grade energy companies. At the end of last week, their yield spread widened to 1,080 basis points, up from just 612 basis points in January. It’s only going to get worse, and the spread could soon reach a record high, judging by recent trading. A Chesapeake Energy Corp. bond maturing in 2025 with an 11.5% coupon came into 2020 at a price just below 100 cents on the dollar. The same security, with a composite credit rating of triple-C, traded at 27 cents on the dollar on Monday.Investors are even losing confidence that some companies will survive the next year or two. Antero Resources Corp. debt due in November 2021 plunged 37 cents on Monday to 46.5 cents, while Whiting Petroleum Corp. securities maturing in March 2021 fell 25 cents to a mere 20 cents. There will be bankruptcies and defaults, full stop. The most scary prospect for bond traders is that this deflationary spiral ensnares other parts of the credit markets that are leveraged to the brim. It’s no secret, for instance, that the universe of triple-B rated corporate bonds has expanded to more than $3 trillion from $800 billion at the end of the last recession. Borrowing costs have remained historically low in the post-crisis era, creating the incentive for blue-chip companies and risky upstarts alike to finance themselves through debt. Carrying a vulnerable balance sheet can work when inflation is low but steady along with economic growth and when the credit markets are wide open for business. It’s an open question whether any of those assumptions still hold.Bond traders expect the Fed will do what it can, up to and including cutting its key short-term rate all the way back to the lower bound of 0% to 0.25% in short order. Such a move, in theory, would spur inflation. I’m skeptical, judging by the years of stagnant price growth in Europe and Japan. So too, apparently, are the European Central Bank and the Bank of Japan. There’s a reason that neither one is in a rush to drop interest rates further into negative territory. As Lacy Hunt of Hoisington Investment Management told me last week, “when the short rates start coming down toward zero, even before they get to zero, you reach a reversal point and the counterproductive effects of the lower rates offset the beneficial effects of having a lower cost of borrowing.” Banks are one such industry feeling the pinch. They struggled enough with short-term rates near the zero bound and longer-term yields around 2%. How are they supposed to earn net interest income now, with the 10-year yield at 0.5%? Investors aren’t waiting to find out: The KBW Bank Index plunged about 10% on Monday.With the coronavirus outbreak, there was always the feeling that maybe it wouldn’t be as bad as the worst-case scenario. The plunge in oil prices appears to have more staying power. Whether that one-two punch brings about outright deflation remains to be seen. But it’s looking more likely than any point in the past decade, which is an ominous sign for bond markets of all stripes. Flocking to the haven of Treasuries provides almost no income. The reach-for-yield trade is quickly unraveling in the riskiest debt. One of the cornerstones of the longest expansion in U.S. history — a benign corporate default rate — no longer looks so sturdy.The bond markets have cracked. Any further move toward deflation would most likely create a chasm.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Whiting Petroleum's (WLL) discretionary cash flow of $188.7 million surpasses its capex worth $103 million, accounting for a positive free cash flow of $86 million.
(Bloomberg) -- The coronavirus outbreak that has sent markets worldwide on a collective nosedive is forcing U.S. oil and gas explorers already burning through borrowed cash and failing to deliver returns to the brink of distress. Drillers’ fall from grace has worsened as shareholders increasingly demand they shift their focus to generating cash flow, instead of increasing production at any costs. Now, as bonds collapse, they face the double whammy of upset investors on both sides of capital markets -- equity and debt.The stocks of U.S. explorers are on average worth just a quarter of their peak in mid 2014, when oil started plunging from more than $100 a barrel. The S&P Oil & Gas Exploration and Production Index has plunged 82% since.This week’s selloff exacerbated challenges facing distressed energy borrowers, which have been pressured by high debt loads, low commodity prices, disappointing earnings, and investors reluctant to keep financing them.“The market has not really been open, or certainly hasn’t been bullish, for energy companies for a long time now,” Spencer Cutter, an analyst for Bloomberg Intelligence, said in an interview Thursday.High-yield energy has lost nearly 8% this year, compared to a loss of only 0.8% for the broad category of high-risk borrowers, according to Bloomberg Barclays data. Energy is the biggest contributor to $105 billion of outstanding high-yield debt trading at distressed levels, with a distressed ratio of about 26%, according to Bloomberg Intelligence.Chesapeake Energy Corp., Whiting Petroleum Corp. and Gulfport Energy Corp. this week became the face of this dramatic change of fortune since the heyday of the shale boom and Gulf of Mexico exploration.ChesapeakeOnce at the vanguard of the U.S. shale revolution, Chesapeake has fallen headlong toward collapse as it and rival drillers flooded the U.S. with excess natural gas, crushing prices and destroying billions of dollars in value.Its options for dealing with its towering debt load are scant. Chief Executive Officer Doug Lawler mapped out a survival strategy predicated on a sweeping divestiture program that must be consummated within months in a market already glutted with North American gas holdings.Chesapeake’s shares have all but evaporated in value, trading below 30 cents. It’s 11.5% bonds maturing in 2025 have plunged 28% this week to 57 cents on the dollar. The yield on the security, a measure of how much investors will demand in gains to take the risk of holding it for a year, has surged to almost 30%, about the same level as government bonds from troubled Lebanon.Whiting PetroleumWhiting’s stock is down 75% this year amid reports that the oil producer is holding discussions with advisers to review its capital structure. The Denver-based company is looking at a potential debt exchange, Debtwire reported this month, citing people familiar with the matter.Whiting and Chesapeake are among the names that are “poorly positioned” if an economic downturn were to push oil to $40 a barrel and natural gas to $1.75 per million British thermal units, analysts at Scotiabank wrote earlier this week in a note to investors.The shale explorer’s 2020 bond has plummeted 26% this week to 37.5 cents on the dollar, with the yield jumping to about 30%.Gulfport EnergyGulfport bonds, along with Chesapeake’s and Whiting’s, were among the energy debt securities that most tanked this week.Earlier this month, Piper Sandler & Co. downgraded Gulfport Energy to neutral telling investors in a note: “darkness has devolved into pitch black” for the firm’s outlook on the natural gas market.Gulfport’s 6% bonds due October 2024 fell to a record low of 33.75 cents on the dollar, to yield 37% on Friday.Its shares have followed Chesapeake into penny stock territory, closing Friday at little more than 80 cents, after a 35% plunge this week.To contact the reporters on this story: Carlos Caminada in Calgary at email@example.com;Allison McNeely in New York at firstname.lastname@example.org;David Wethe in Houston at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Carlos Caminada, Joe CarrollFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Falling West Texas Intermediate crude prices, as the COVID-19 epidemic spreads and threatens global growth, are adding to the troubles of high-yield energy companies.
Shares of Whiting Petroleum Corp. took a 41% dive toward a record low in morning trading Thursday, after the oil and gas company reported a narrower-than-expected fourth-quarter loss on revenue that fell less than forecast, but disappointed analysts with its outlook and lack of comment on upcoming debt maturities. The stock was the biggest decliner listed on major U.S. exchanges, according to FactSet data. Analyst Neal Dingmann at SunTrust Robinson Humphrey more important that fourth-quarter results was Whiting's 2020 outlook, which saw a drop in capital expenditures (capex) and oil production. In addition, he said that fact that there was "no announcement regarding ongoing efforts to address upcoming maturities" should weigh on the stock. The company's post-earnings conference call with analysts is scheduled to begin at 11 a.m. Eastern. Cowen's David Deckelbaum said the 2020 production guidance was 12% lower than expectations, while the capex budget was 20% below projections. The stock has plummeted 74.0% over the past three months, while the SPDR Energy Select Sector ETF has lost 23.4% and the S&P 500 [s; spx] has declined 4.2%. The stock was now trading about one-fifth the price it was when Whiting enacted a 1-for-4 reverse stock split in November 2017.
Whiting (WLL) delivered earnings and revenue surprises of 50.00% and 1.23%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Oil and gas stock prices have been hit the hardest by bad news in the market this year, with Colorado shale oil companies among the worst performing nationwide. Whiting Petroleum Corp (NYSE: WLL) and Extraction Oil & Gas Inc. (Nasdaq: XOG), both based in Denver, are among the five worst-performing stocks nationally out of 3,000 U.S. public companies included in a Denver Business Journal analysis. Several other Denver-based companies, including Centennial Resource Development Inc. (Nasdaq: CDEV), QEP Resources (NYSE: QEP), Highpoint Resources Corp. (NYSE: HPR) and Ovinitiv Inc. (NYSE: OVV) are among the 100 public companies that have lost the most since Jan. 2, all of them losing more than 45% of their stock value so far this year.
Whiting (WLL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Another Colorado oil and gas company cut its staff this week amid lingering low crude oil prices and a slowdown in new well drilling in the state. “Unfortunately, this resulted in difficult but necessary organizational changes ... This was a difficult decision and one we did not take lightly.” The company had been growing, approaching 300 employees in early 2019. Its growth and debt, and its drilling territory close to northern metro-area suburbs have made it one of the most closely watched Colorado oil companies by investors.
Shares of Whiting Petroleum Corp. plunged in volatile trading toward a record low, after a Debtwire report that the oil-and-gas company had engaged with advisers in an effort to find ways to refinance the large amount of debt coming due over the next year.