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Whiting Petroleum Reported Upbeat 4Q16 Earnings and Revenue

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Whiting’s 4Q16 revenue

Whiting Petroleum (WLL) reported its 4Q16 earnings on February 21, 2017, after the markets closed. Whiting’s 4Q16 revenue was ~$474 million versus an estimate of $345 million. Its revenue in 4Q15 was ~$467 million. In 3Q16, its revenue was $129.2 million.

As we can see in the image above, WLL’s 4Q16 earnings came in higher than analysts’ expectations for the first time in 2016. Revenue for the year was $1.3 billion compared to $2.1 billion in 2015.

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Whiting’s 4Q16 earnings

Whiting Petroleum’s (WLL) 4Q16 adjusted earnings per share (or EPS) were -$0.28 versus Wall Street analysts’ consensus estimate of about -$0.31. In 4Q15, its EPS stood at -$0.43. Its 3Q16 earnings came in at -$0.47 per share. Whiting’s earnings, like its revenues, came in better than analysts’ estimates, albeit by a smaller margin.

Peers Concho Resources (CXO) and Sanchez Energy (SN) announced 4Q16 earnings of $0.20 and $0.14, respectively. To learn more about how these companies performed in 4Q16, read 4Q16 Insights: Acquisitions Could Drive Concho’s 2017 Production and Sanchez Energy’s Guidance for 2017 after Recent Acquisition.

4Q16 management commentary

James Volker, Whiting’s CEO, commented in the 4Q16 earnings release, “Whiting delivered another strong quarter. Production grew sequentially when adjusted for asset sales and exceeded the high end of our forecast. Operating expense was at the low end of guidance. We achieved this while generating operating cash flow that exceeded our capital expenditures.”

Speaking about WLL’s North Dakota asset sale announced last year, Volker commented, “We received the proceeds on January 3, 2017, and used $275 million to redeem all of our outstanding 2018 notes on February 2, 2017. Since the beginning of 2016, we have sold $725 million of non-core properties and used the proceeds to improve our balance sheet. Asset sales combined with innovative debt exchange transactions and free cash flow reduced debt by $2.4 billion or 42% since March 2016.”

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