Analyzing Whiting Petroleum’s Second-Quarter Results

Second-quarter revenues

Whiting Petroleum (WLL) released its second-quarter earnings on July 31 after the markets closed. The company reported revenues of $526.40 million—compared to analysts’ consensus estimate of ~$505.37 million. In the second quarter of 2017, Whiting Petroleum reported revenues of ~$311.51 million.

Analyzing Whiting Petroleum’s Second-Quarter Results

The higher revenues in the second quarter were due to higher realized crude oil prices. The average crude oil price realizations in the second quarter were $55.69 per barrel—compared to $40.78 per barrel in the second quarter of 2017. Crude oil accounted for 67.16% of Whiting Petroleum’s total second-quarter production. Higher production volumes in the second quarter also supported the higher revenues. Whiting Petroleum’s production in the second quarter was 126.61 Mboe/d (thousand barrels of oil equivalent per day)—compared to 115 Mboe/d reported in the second quarter of 2017.

Second-quarter earnings

In the second quarter, Whiting Petroleum reported an adjusted EPS of $0.62 and narrowly missed analysts’ consensus EPS estimate of $0.64. In the second quarter of 2017, Whiting Petroleum reported an adjusted EPS of -$0.72. The year-over-year improvement in the company’s earnings was supported by higher revenues and partially offset by higher operating expenses. Whiting Petroleum’s operating expenses in the second quarter were $476.63 million—compared to $368.23 million reported in the second quarter of 2017.

In comparison, Hess (HES) reported an adjusted EPS of -$0.48 in the second quarter—compared to -$1.46 reported in the second quarter of 2017. To learn more about Hess’s second-quarter results, read Hess’s Q2 2018 Production Highlights: What to Expect This Year.

Anadarko Petroleum (APC) reported an adjusted EPS of $0.54—compared to -$0.77 reported in the second quarter of 2017.

Meanwhile, Continental Resources (CLR) and Cimarex Energy (XEC) are expected to report second-quarter EPS of $0.76 and $1.63, respectively—compared to the EPS of $0.02 and $1.06, respectively, reported in the second quarter of 2017.