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The Fifth-Worst-Performing Upstream Stock Year-to-Date

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Whiting Petroleum’s year-to-date performance

On December 1, 2017, Whiting Petroleum (WLL) was the fifth-worst-performing stock in 2017 from the oil and gas production—or upstream—sector in the US. Year-to-date, WLL has fallen strongly from its year-end 2016 close of $48.08 to $25.86 on December 1—a significant decrease of ~46.0%.

Year-to-date in 2017, WLL has underperformed crude oil (USO), natural gas (UNG), and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) by a large margin. Year-to-date, crude oil has risen ~9.0% whereas natural gas has fallen ~18.0%.

Year-to-date, XOP has fallen ~12.0%. In comparison, the SPDR S&P 500 ETF (SPY) has risen ~18%, and the SPDR Dow Jones Industrial Average ETF (DIA) has risen ~23.0% in 2017.

Whiting Petroleum’s revenues and earnings

In 9M17, Whiting Petroleum (WLL) reported revenues of ~$1.0 billion—an increase of ~31.0% when compared with its 9M16 revenues of ~$761.0 million. In 9M17, WLL reported a net loss of ~$170.0 million from a net loss of ~$477.0 million in 9M16.

Despite higher revenues and higher net income, WLL reported a decline in its EBITDA[1. earnings before interest, tax, depreciation, and amortization] in 9M17 when compared with 9M16. In 9M17, WLL reported EBITDA of $540.0 million from ~$552.0 million in 9M16.

WLL’s free cash flows have seen a steep decline from ~-$455.0 million in 9M17 from ~-$85.0 million in 9M16.

In 2017, Whiting Petroleum carried out multiple asset sales and reduced its total debt to ~$2.9 billion from ~$3.5 billion at the end of 2016.

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