Whiting Petroleum’s stock performance
Following Whiting Petroleum’s (WLL) 1Q16 earnings release after the close of the Markets on April 27, 2016, its stock fell ~2% in the early trading hours of April 28. WLL’s stock has fallen by ~65% YoY (year-over-year).
In the following graph, you can see Whiting Petroleum’s stock performance with respect to movement in the broader industry and the broader market.
Peers and performance
Whiting Petroleum’s peers Rice Energy (RICE) and Oasis Petroleum (OAS) saw their stock prices fall by 22% and ~35.3%, respectively, on a YoY basis. Newfield Exploration’s (NFX) stock increased by ~2.7% in the same period. All of these companies account for ~2.6% of the iShares US Oil & Gas Exploration & Production ETF (IEO).
From April 13–April 27, WLL overperformed the Energy Select Sector SPDR ETF (XLE). It increased by 17% in this period, while XLE increased by 6.8%. WLL also overperformed the SPDR S&P 500 ETF (SPY), which has mostly remained flat in the two weeks ended April 27, 2016.
In the above graph, it’s clear that Whiting Petroleum’s performance was mainly driven by WTI (West Texas Intermediate) crude oil prices. Along with natural gas prices, this was also a major driver of XLE’s performance.
Following Whiting Petroleum’s 1Q16 earnings release after the market closed on April 27, its stock was trading lower the next day, despite crude oil prices trading 0.7% higher than the previous close in the early trading hours of April 28. This goes to show that the market’s reaction to Whiting Petroleum’s earnings release wasn’t positive. The stock price for Whiting Petroleum likely fell as a result of its earnings and revenue miss.
Please read Part 1 of this series to learn more about Whiting Petroleum’s 1Q16 performance.