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Whiting (WLL) Stock Rises Since Q1 Earnings: Here's Why

Zacks Equity Research
·4 min read

The stock of upstream energy operator Whiting Petroleum Corporation WLL has edged up 1.9% since its first-quarter 2022 earnings announcement on May 4. The positive response could be attributed to the company’s improvement in year-over-year profits, with help from surging oil prices.

Investors should note that WLL is in the process of tying up with fellow energy explorer, Oasis Petroleum. The merged entity will have the leading Williston Basin position in North Dakota and Montana, with top-tier assets spanning more than 972,000 net acres and an output of about 167,800 barrels of oil equivalent per day, an improved free cash flow generation and a substantial scale of operations.

Now, let’s get back to the earnings discussion.

What Did Whiting Petroleum’s Earnings Unveil?

Whiting Petroleum reported first-quarter 2022 adjusted net income per share of $4.61, missing the Zacks Consensus Estimate of $5.04 on weaker-than-expected production.

However, the energy explorer’s bottom line compared favorably with the year-earlier quarter's earnings of $2.79 on the back of sharply higher oil prices.

Total operating revenues came in at $526.9 million, ahead of the consensus mark of $404 million. Moreover, the top line rose 11.3% from the quarter-ago level of $473.4 million.

The company’s free cash flow came in at $150.4 million.

Whiting Petroleum Corporation Price, Consensus and EPS Surprise

Whiting Petroleum Corporation Price, Consensus and EPS Surprise
Whiting Petroleum Corporation Price, Consensus and EPS Surprise

Whiting Petroleum Corporation price-consensus-eps-surprise-chart | Whiting Petroleum Corporation Quote

Production & Prices

WLL’s total oil and gas production reported a 6.2% sequential decrease to 8,008 thousand barrels of oil equivalent/ MBOE (comprising 80% liquids). Oil volumes at 4,720 thousand barrels (MBbl) fell 3.1% from the level achieved in fourth-quarter 2021, while natural gas output dropped 7.1% to 9,575 thousand cubic feet. Daily production averaged 89 MBOE, in line with the Zacks Consensus Estimate but down from the previous quarter’s 92.8 MBOE.

The average crude oil price received during the first quarter was $91.05 per barrel, reflecting a 20.2% rise from the quarter-ago receipt of $75.75. Meanwhile, the average natural gas price declined to $3.37 per thousand cubic feet (Mcf) from $3.68 in the October-December period.

Balance Sheet & Capital Expenditure

As of Mar 31, Whiting Petroleum had approximately $208,000 in cash, cash equivalents and restricted cash, with $50 million in long-term debt. In the reported quarter, the company spent $90.9 million on its capital program.

Other Energy Picks

Apart from Whiting Petroleum, investors interested in the energy sector might look at Equinor ASA EQNR, Canadian Natural Resources CNQ and Marathon Oil MRO.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Equinor: Equinor is valued at some $114.3 billion. The Zacks Consensus Estimate for EQNR’s 2022 earnings has been revised 51.9% upward over the past 60 days.

Equinor, headquartered in Stavanger, Norway, delivered a 1.9% beat in Q1. EQNR shares have surged around 68.4% in a year.

Canadian Natural Resources: CNQ beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 17.6%, on average.

Canadian Natural is valued at around $71.5 billion. CNQ has seen its shares gain around 95.8% in a year.

Marathon Oil: Marathon Oil is valued at some $19.3 billion. The Zacks Consensus Estimate for MRO’s 2022 earnings has been revised 58.3% upward over the past 60 days.

Marathon Oil, headquartered in Houston, TX, has a trailing four-quarter earnings surprise of roughly 23%, on average. MRO shares have gained around 140.8% in a year.


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