It has been about a month since the last earnings report for Whiting Petroleum Corporation (WLL). Shares have lost about 2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Whiting Petroleum Corporation due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Whiting Petroleum Q3 Earnings and Revenues Beat Estimates
Whiting Petroleum reported third-quarter 2021 adjusted net income per share of $3.57, beating the Zacks Consensus Estimate of $2.93 and the sequential quarter’s earnings of $3.01, attributable to a significant increase in production and oil price realizations.
Total operating revenues came in at $401.01 million, ahead of the Zacks Consensus Estimate of $311 million. Moreover, the top line improved 13.9% from the quarter-ago level of $352 million.
On an encouraging note, the upstream energy operator’s free cash flow of $127.7 million was higher than the second-quarter 2021 figure of $111.3 million.
Production & Prices
Whiting Petroleum’s total oil and gas production reported a sequential increase of 0.5% to 8,472 thousand barrels of oil equivalent/ MBOE (comprising 79% liquids). Oil volumes at 4,763 thousand barrels (MBbl) slid 2% from the level achieved in second-quarter 2021 while natural gas output inched up 0.74% to reach 10,745 thousand cubic feet. Daily production averaged 92.1 MBOE, surpassing the Zacks Consensus Estimate of 90 MBOE.
The average realized crude oil price during the third quarter was $66.54 per barrel, reflecting a 4.9% rise from the quarter-ago realization of $63.46.
Balance Sheet & Capital Expenditure
As of Sep 30, Whiting Petroleum had $12.9 million in cash, cash equivalents and restricted cash. The oil explorer’s long-term debt of $72 million represented a debt-to-capitalization of 5%. In the reported quarter, WLL spent $67 million on its capital program.
Whiting Petroleum aims to support its operations entirely from operating cash flow in the future. Based on this, WLL expects to be in a positive net cash position by the end of 2021 with no outstanding debt under its credit facility.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 22.06% due to these changes.
Currently, Whiting Petroleum Corporation has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Whiting Petroleum Corporation has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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