Digging Deeper into Whiting Petroleum’s Key Fundamentals

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Part 6
Digging Deeper into Whiting Petroleum’s Key Fundamentals PART 6 OF 8

Analyzing Whiting Petroleum’s Stock Performance

Stock performance

Now, we’ll discuss Whiting Petroleum’s (WLL) stock movements with respect to movements in the broader industry and the broader market, crude oil prices, and natural gas prices. On a YTD (year-to-date) basis, Whiting Petroleum stock has fallen 55.4%.

Analyzing Whiting Petroleum’s Stock Performance

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The downtrend in Whiting Petroleum’s stock prices was the result of lower crude oil prices (USO). However, crude oil prices have been rising recently. The higher prices have been reflected in Whiting Petroleum’s stock movements as well. On September 20, 2017, crude oil prices settled above $50 per barrel for the first time in almost two months. Since then, crude oil prices have closed above $50 every day. On September 27, 2017, crude oil prices closed at $52.14. During this period, Whiting Petroleum stock rose 6%.

The Energy Select Sector SPDR ETF (XLE) has risen 2.4% during the same period. XLE has fallen ~11% YTD. As you can see in the above graph, Whiting Petroleum has underperformed XLE throughout the year. Whiting Petroleum stock and XLE have underperformed the broader market or the SPDR S&P 500 (SPY), which has risen ~11% YTD.

Management’s comments and strategies

Whiting Petroleum’s management said in the 2Q17 earnings conference that it would focus on enhanced well completion in the Williston Basin. It will have production profiles in the 1 MMboe–1.5 MMboe (million barrels of oil equivalent) type curve range. According to Whiting Petroleum, these wells have high rates of return even at $40 NYMEX oil prices. Whiting Petroleum’s management said, “In summary, the steps we took to strengthen our balance sheet and improve well productivity through enhanced completions empowers us to deliver strong growth at current commodity prices.”


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