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Whiting Petroleum Stock: Will Investors Regain Their Confidence?

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Whiting Petroleum stock

After falling to a low of $10.49 on February 7, 2017, Whiting Petroleum (WLL) seems to be slowly making its way upward. It’s mirroring movements in crude oil prices (USO).

The stock has given a return of -14% since the beginning of the year. It underperformed the broader energy sector—the Energy Select Sector SPDR ETF (XLE). XLE had a return of -6% during the same period.

The broader market S&P 500 ETF (SPY) gave a return of ~5.3%.

Whiting Petroleum wasn’t off to a good start this year, as you can see in the above graph. The stock had been falling due to volatile crude oil prices. The above graph shows that the whole energy sector (XLE) has seen weakness since the beginning of the year.

Most of the weakness has also been driven by natural gas prices (UNG). Natural gas prices have been the worst performer in the peer group.

Since the beginning of the year, natural gas prices have fallen ~20%.

However, Whiting Petroleum has given returns of ~179% year-over-year—compared to XLE’s returns of ~25%. Whiting Petroleum’s strong performance is likely because of its focus on debt reduction, operational efficiencies, strong cash flows, and an improving oil price environment.

Given its strong quarterly earnings and if crude oil prices rise on a consistent and sustainable basis, Whiting Petroleum stock could recover and regain investors’ confidence. Market Realist will continue to track weekly performances for Whiting Petroleum and other major upstream companies.

To learn how Whiting Petroleum performed in 4Q16 and fiscal 2016, read Whiting Petroleum Reported Upbeat 4Q16 Earnings and Revenue.

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