Whiting Petroleum stock
Whiting Petroleum (WLL) stock continued to surge in the week ended April 2, 2018, despite a drop in crude oil prices. However, crude oil prices have stayed strong since the end of 2017, which has supported WLL stock. On a year-over-year basis, crude oil prices have risen 25.0%.
Year-over-year, WLL stock has fallen ~12.4%. In comparison, the Energy Select Sector SPDR ETF (XLE) has declined ~5.3% year-over-year. XLE and WLL have both underperformed the broader market ETF (SPY). The S&P 500 SPDR ETF has risen ~9.4% in the same period.
WLL’s capex trends
Whiting Petroleum (WLL) has made some drastic capital spending decisions over the past few years. In 2016, the company cut its capital spending by 76.0%. In 2017, it forecast a capex budget that was almost double that at $1.1 billion, which was later lowered to $950.0 million. In 2018, the company has forecast an even lower capex budget of $750.0 million.
Whiting Petroleum’s fiscal 2018 production guidance is ~9.0% higher than its 2017 production, despite lower spending levels. This trend could also support WLL stock. WLL’s production guidance for 2017 was 10.6% lower than its 2016 production levels, despite the high spending levels.
WLL forecast ~$200.0 million of free cash flow in 2018 at $55.00 NYMEX oil prices. Crude oil prices are currently trading at $63.00 per barrel.