Point72 Asset Management increases its stake in Whiting Petroleum


Sep. 16 2014, Updated 12:00 p.m. ET

Point72 Asset Management increases its positions in the energy sector

Steven Cohen’s Point72 Asset Management added to its positions in the energy sector with Baker Hughes Inc. (BHI), Whiting Petroleum (WLL), and Weatherford International (WFT). One of its top new positions was in Valeant Pharmaceuticals (VRX). Point72 trimmed its stakes in Yahoo, Baidu, and Hess Corp. in 2Q14.

Point72 Asset Management, previously SAC Capital, added to its position in Whiting Petroleum (WLL) in 2Q14. The position accounts for 1.51% of the fund’s 2Q portfolio, up from 0.93% in 1Q14.

Whiting Petroleum overview

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Whiting Petroleum is an independent oil and gas company. It explores for, develops, acquires, and produces crude oil, natural gas, and natural gas liquids primarily in the Rocky Mountain, Permian Basin, Michigan, Gulf Coast, and Mid-Continent regions of the U.S. The company’s largest projects are in the Bakken and Three Forks plays in North Dakota, the Redtail Niobrara play in northeast Colorado, and its enhanced oil recovery field in Texas.

Whiting Petroleum to acquire Kodiak Oil & Gas

In July, Whiting Petroleum and Kodiak Oil & Gas (KOG) jointly announced that WLL would acquire KOG in an all-stock transaction. According to WLL’s press release, the newly formed company will surpass Continental Resources (CLR) to form the largest Bakken producer, with over 107,000 barrels of oil equivalent per day (or boe/d) of production. The companies expect the closing of this transaction to occur in the fourth quarter of 2014.

You can read about the details of this acquisition in Market Realist’s guide to the Whiting-Kodiak transaction.

Whiting posts robust 2Q14 results

Whiting posted net income of $151.4 million, or $1.26 per share, in 2Q14, compared with $134.7 million, or $1.14 per share, in the corresponding period last year. Plus, revenue beat expectations at $835.6 million, compared with $663.6 million in the corresponding period last year.

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For 2Q14, Whiting’s production totaled 10 million barrels of oil equivalent (or MMboe), of which 88% was crude oil or natural gas liquids. The company said the production total exceeded the high end of its guidance and equates to an average production rate of 109,760 barrels of oil equivalent per day (or boepd). This represents a sequential increase of 9.7% over the 1Q14 average of 100,065 boepd.

Whiting added that its net production from the Bakken and Three Forks plays in the second quarter reached 80,195 boepd, representing a 33% increase over 2Q13. In the Niobrara in Colorado, a net production of 7,235 boepd represented a sequential 59% increase over 1Q14.

Whiting said it’s raising its 2014 production guidance to a mid-point of 20% over 2013, up from a mid-point of 18% over 2013 due to “better than expected well results and a higher level of non-operated drilling activity.” Whiting management also said it expects a “7% production increase for the third quarter over the second quarter.”


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