How Whiting Petroleum’s 4Q17 Earnings Could Affect Its Stock



Whiting Petroleum stock

Whiting Petroleum (WLL) stock increased 5.8% in the week ended January 12, 2018, compared to the week ended January 5, 2018.

As we can see in the graph below, Whiting Petroleum has been on an uptrend, mirroring crude oil prices. In the week ended January 12, 2018, crude oil prices increased ~4.2%. The Energy Select Sector SPDR ETF (XLE) rose 2.7% during the same period.

However, WLL stock has declined ~41.0% on a year-over-year basis. Crude oil prices (DBO) have risen ~23.0% during the same period.

Whiting Petroleum underperformed the energy sector (XLE), which rose 1.6% on a year-over-year basis, as well as the broader market (SPY) (SPX-INDEX), which rose ~23.4% in 2017.

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How 4Q17 could affect WLL stock

WLL is expected to report its 4Q17 and fiscal 2017 earnings on February 20, 2018. Analysts expect WLL’s 4Q17 revenues and earnings to improve year-over-year, supported by stronger crude oil prices.

In December 2017, WLL announced that it expects impairment charges of $800.0 million–$900.0 million in 4Q17. Whiting Petroleum’s management noted that the impairments resulted from its decision to focus its activities more in the Williston Basin in 2018. Following the announcement, Whiting Petroleum stock fell 7.5%.

Investors are expected to see how events unfold for Whiting Petroleum and whether positive 4Q17 earnings could boost WLL stock. Investors should also be interested in WLL’s capex plans for 2018. Whiting Petroleum’s management announced a capital budget of $1.1 billion for 2017, which was later reduced to $950.0 million.


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