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Whiting Petroleum’s 2Q17 Earnings: What to Expect

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2Q17 earnings release

Whiting Petroleum (WLL) will release its 2Q17 earnings on July 26, 2017, after the market closes.

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2Q17 revenue estimate

Revenue estimates for WLL from Wall Street analysts for 2Q17 are mostly similar to revenue in the previous quarter, as we can see in the graph above in the image on the left.

2Q17 revenue estimates are ~$369 million. WLL’s revenue in 1Q17 was $371 million, while a year ago, in 2Q16, it was ~$340 million.

As we can see, revenue estimates for 2Q17 are slightly higher on a year-over-year basis. The estimated 2Q17 revenue represents a year-over-year growth of 8.5%. In comparison, year-over-year revenue growth in 1Q17 was ~28%, while in 2Q16, it was -48%.

The above graph shows that Whiting Petroleum’s revenues beat estimates in the previous two quarters. Investors will likely keep a close eye to see if this trend continues in 2Q17 as well.

Whiting Petroleum’s 2Q17 EPS estimate

WLL’s 2Q17 loss per share estimate is $0.17, which compares to a loss per share of $0.15 in 1Q17. A year ago, in 2Q16, WLL’s loss per share was $0.70.

In contrast, Anadarko Petroleum (APC), Continental Resources (CLR), and Concho Resources (CXO) are expected to report earnings per share of -$0.22, $0.04, and $0.44, respectively, in 2Q17. To learn more about what to expect for APC in 2Q17, see Can Anadarko Petroleum’s 2Q17 Earnings Revitalize Its Stock?

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WLL’s 1Q17 highlights

In 1Q17, WLL’s revolving credit facility was reaffirmed at a borrowing base of $2.5 billion. The company also increased its production guidance slightly and lowered its cost guidance to reflect operational efficiencies. These included improvements in its lease operating expenses, positive results from its enhanced well completions, and higher-than-expected 1Q17 production. To learn more about WLL’s 1Q17 performance, see Whiting’s 1Q17 Earnings: Your Key Takeaways.

Speaking about its planned activity in 2017 in light of weak energy prices, WLL’s management commented in the 1Q17 earnings conference, “Our activity is designed to take us forward even at a $40 oil price environment. So, I would say, we certainly wouldn’t consider cutting back until the trend got below $45. And I see everything that we’re doing in 2017 and for that matter what we planned in 2018 already as being very economic even at $40 or $45 oil.”

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