Whiting Petroleum’s 1Q16 Earnings and Revenue Missed Estimates



Whiting Petroleum’s 1Q16 revenue

Whiting Petroleum (WLL) reported its 1Q16 earnings on April 27, 2016, after the Market closed. The company announced adjusted revenue of ~$324.3 million. Wall Street analysts’ consensus revenue estimate was ~$350.7 million. The 1Q16 revenue was ~37% lower than the 1Q15 revenue of ~$520 million.

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Whiting Petroleum’s 1Q16 earnings

Whiting Petroleum’s (WLL) 1Q16 adjusted earnings per share (or EPS) was -$0.85 compared to Wall Street analysts’ consensus estimate of about -$0.72 earnings per share. Its 1Q15 earnings per share was -$0.23.

In comparison, Whiting Petroleum’s upstream peers Oasis Petroleum (OAS), PDC Energy (PDCE), and Diamondback Energy (FANG) are expected to report 1Q16 EPS of -$0.17, -$0.09, and ~$0.44, respectively. All of these companies account for ~3% of the iShares US Oil & Gas Exploration & Production ETF (IEO).

Key efforts and other 1Q16 highlights

In its 1Q16 earnings release, Whiting Petroleum noted that it is 49% hedged for 2016 as a percentage of its March 2016 production.

Whiting’s chairman, president, and CEO, James Volker, said in the 1Q16 earnings release, “During the first quarter, we improved our balance sheet and increased capital efficiency. We exchanged $477 million of bond debt into convertible debt, which should further strengthen our financial position.”

Fiscal 2015 earnings recap

For fiscal 2015, Whiting Petroleum (WLL) reported an adjusted EPS of -$0.80. The comparable earnings in 2014 were ~$4.20 per share.

Whiting Petroleum’s 2015 revenue came in at ~$2.2 billion, compared to revenue of ~$3 billion in 2014.

Whiting Petroleum’s proved reserves at the end of 2015 were 820.6 million barrels of oil equivalent. This was 5% higher than the proved reserves at the end of 2014.


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