Whiting Petroleum stock
Whiting reported better-than-expected adjusted EPS (earnings per share) of -$0.17 compared with Wall Street analysts’ estimate of -$0.3. The year-over-year improvement in earnings was supported by higher revenues as a result of high oil and gas prices.
Year-over-year, WLL stock has fallen ~31.5%. In comparison, the Energy Select Sector SPDR ETF (XLE) has fallen ~6.2% year-over-year. Both XLE and WLL have underperformed the broader market ETF (SPY). The S&P 500 SPDR ETF rose ~15% in the same period. To know more about WLL’s performance, read Whiting’s Upbeat 4Q17: Just What the Stock Needed?
Whiting’s strategy for 2018
Whiting Petroleum’s capex guidance for fiscal 2018 is $750 million versus $912 million capex in fiscal 2017. Production guidance for 2017 was lower by 10.6% compared to 2016 production levels. In contrast, Whiting Petroleum’s fiscal 2018 production guidance is ~9% higher than 2017 production.
The company expects to spend 80% of its 2018 capex budget in the Williston Basin and 10% in the Redtail region. Commenting on its 2018 strategy, WLL management noted during the 4Q17 earnings conference, “Whiting plans to implement an optimized completion strategy to maximize capital efficiency on a project basis.”
The management also added that it will focus more on its Bakken operations, and said that it is “exploring the monetization of Redtail.”