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Whiting Petroleum’s 3Q16 Earnings and Revenue Disappoint

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Whiting’s 3Q16 revenue

Whiting Petroleum (WLL) reported its 3Q16 earnings on October 26 after the markets closed. Whiting’s 3Q16 revenue was ~$129 million, versus an estimate of $348 million. Its revenue in 3Q15 was ~$559 million. In 2Q16, its revenue was $371 million.

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Whiting’s 3Q16 earnings

Whiting Petroleum’s (WLL) 3Q16 adjusted earnings per share (or EPS) were -$0.47, versus Wall Street analysts’ consensus estimate of about -$0.36 in EPS. Its 3Q15, its EPS stood at -$0.17. Its 2Q16 earnings came in at -$0.70 per share.

As you can see in the graph above, Whiting’s earnings and revenues missed analysts’ estimates by a significant margin.

Peer comparison

Peers Concho Resources (CXO) and Cimarex Energy (XEC) haven’t announced their 3Q16 earnings yet. Analysts expect the EPS for these companies to come in at about $0.20 and $0.37, respectively. Watch Market Relist for earnings coverage of these companies.

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Key 3Q16 management commentary

CEO James Volker commented in the 3Q16 earnings press release, “During the third quarter, we continued to improve our capital efficiency with production at the high end of guidance on lower than projected capital spending, and LOE per BOE improving to $7.98 per BOE on the sale of North Ward Estes. This resulted in our net cash from operating activities exceeding our capital spending by $66 million.”

Commenting on WLL’s asset base Volker observed, “We believe the focus on balance sheet strength and capital spending discipline in the first nine months of 2016 provides us with a strong financial base to continue to deliver solid operational results and realize the potential of our world class asset base.”

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