WLL - Whiting Petroleum Corporation

NYSE - NYSE Delayed Price. Currency in USD
1.0800
-0.0500 (-4.42%)
At close: 4:00PM EDT

1.0700 -0.01 (-0.93%)
After hours: 5:46PM EDT

Stock chart is not supported by your current browser
Previous Close1.1300
Open1.1200
Bid1.0700 x 3100
Ask1.0700 x 4000
Day's Range1.0200 - 1.1200
52 Week Range0.2500 - 18.6200
Volume6,273,757
Avg. Volume23,402,574
Market Cap98.725M
Beta (5Y Monthly)4.27
PE Ratio (TTM)N/A
EPS (TTM)-41.6190
Earnings DateJul. 29, 2020 - Aug. 03, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est8.32
  • Chesapeake’s Collapse Is Latest in Long Line of Shale Busts
    Bloomberg

    Chesapeake’s Collapse Is Latest in Long Line of Shale Busts

    (Bloomberg) -- The shale bust has reached a grim milestone by claiming the pioneer of America’s drilling renaissance. But Chesapeake Energy Corp., which filed for bankruptcy protection on Sunday, is just the latest in a long list of casualties.More than 200 North American oil and gas producers, owing over $130 billion in debt, have filed for bankruptcy since the beginning of 2015, according to a May report from law firm Haynes & Boone. This month alone, seven oil and gas companies have gone under, tying December 2015 for the busiest on record after crude prices plunged amid the Covid-19 pandemic, according to data compiled by Bloomberg.The shale boom spearheaded by the likes of Chesapeake a decade ago was fueled by debt. Profitability and shareholder returns have been consistently disappointing, and investors had already grown wary of throwing more money into shale before this year’s oil crash. The rate of default on high-yield energy debt stood at 11%, Fitch Ratings said in a June 11 report, the highest level since April 2017.Here are a handful other notable shale bankruptcies so far this year:Whiting PetroleumAn oil explorer focused on the Bakken Shale in North Dakota, Whiting Petroleum Corp. was already facing headwinds prior to 2020. Last year, the Denver-based company announced it would fire a third of its workforce and scale back production targets after posting a surprise quarterly loss.Crude prices had their worst quarter ever in the first three months of 2020, with oil heavyweights Saudi Arabia and Russia failing to agree on supply cuts just as worldwide lockdowns wiped out demand for fuel. That was enough to push Whiting, saddled with $3.6 billion in debt, into bankruptcy on April 1.But not before the board approved $14.6 million in cash bonuses for top executives in order to “ensure the stability and continuity of the company’s workforce and eliminate any potential misalignment of interests that would likely arise if existing performance metrics were retained,” the company said in a filing the same day it filed for Chapter 11 protection.Extraction Oil & GasAnother Colorado driller, Extraction Oil & Gas Inc. focused exclusively on the Denver-Julesburg Basin in the Rockies. It filed for Chapter 11 on June 15, offering to ease its debt burden of roughly $1.5 billion by giving note holders 97% of new common stock to be issued.Extraction had withdrawn its 2020 guidance in May and warned it may have to file for bankruptcy. Then, in early June, the company announced plans to pay 16 executives and senior managers a total of $6.7 million in return for staying with Extraction ahead of a possible default on its bond payments.Ultra PetroleumOnce wasn’t enough.Ultra Petroleum Corp. filed for its second bankruptcy in May, four years after its first. Listing $2.56 billion in debt and $1.45 billion in assets in its Chapter 11 filing, the Englewood, Colorado, driller reached a deal with most of its senior creditors that would slash $2 billion in debt, while looking to restructure within three months.In its struggles to stay afloat, Ultra went so far as to suspend its drilling program in January to bolster free cash flow and focus on paying down debt. The explorer first filed for bankruptcy in 2016 and emerged the following year, just as the shale patch was beginning to crawl out of what had been the worst oil industry crash in a generation -- until this year.Sable Permian ResourcesSoon after his ouster from Chesapeake in 2013, co-founder Aubrey McClendon went to work building a new empire, American Energy Partners. But after McClendon died in a car crash three years later, the company shut down.Part of that business, American Energy - Permian Basin, merged with Sable Permian Resources LLC last year. That particular business was widely seen as having among the best assets of a half dozen oil-and-gas acquisition vehicles that McClendon set up during his brief tenure at American Energy Partners.Sable filed for bankruptcy last week in Houston alongside affiliates, listing at least $1 billion of assets and liabilities each.Lilis EnergyThe Permian explorer Lilis Energy Inc. followed right on the heels of Chesapeake, filing for bankruptcy protection on Monday.The company said it was a victim of the coronavirus-induced downturn. Lilis was struggling even before the pandemic, warning in January that it might default after lenders slashed its credit line.“Like many companies in the oil and gas industry, we have been impacted by the severe downturn in commodity prices throughout the Covid-19 pandemic,” Joseph C. Daches, Lilis’s chief executive officer, said in a statement announcing the filing.(Updates with June bankruptcies in 2nd paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. Shale Industry to Lose $300 Billion: Stocks in Focus
    Zacks

    U.S. Shale Industry to Lose $300 Billion: Stocks in Focus

    Among shale investors, 30% are technically insolvent with oil prices at $35, while 20% are stressed financially. So, investors should be cautious while investing in this industry

  • If You Like Money, Don't Buy These 3 Stocks
    Motley Fool

    If You Like Money, Don't Buy These 3 Stocks

    There are plenty of great companies whose shares trade on the stock market, and investing in those companies for the long haul can be extremely rewarding. Although a few lucky companies emerge from bankruptcy proceedings and go on to bigger and better things, nearly all of them end up worthless for their existing shareholders. Whiting was just one of the victims (there will inevitably be many) of the plunge in oil prices during the coronavirus crisis.

  • Retail Traders Flout Legal Logic by Buying Up Bankrupt Stocks
    Bloomberg

    Retail Traders Flout Legal Logic by Buying Up Bankrupt Stocks

    (Bloomberg) -- Investors are piling into stocks of bankrupt companies, wagering against a court process that routinely wipes out shareholders.Car renter Hertz Global Holdings Inc., oil driller Whiting Petroleum Corp. and retailer J.C. Penney Co. are among companies that have seen their shares more than double in recent trading sessions despite being in Chapter 11 bankruptcy, a process that allows companies to keep operating while working out a plan to repay creditors.“I have always thought people have a psychological urge to buy stocks at a low price,” said Kirk Ruddy, a former bankruptcy claims trader. Retail investors may be buying big names they recognize without realizing how rare it is for shareholders to get anything back in bankruptcy, he said.“If you look at the markets in general, people don’t know where to put their money. They are like ‘Hey, I’m going to try that $1 stock,”’ said Ruddy, who now works in sales for SC Lowy Financial HK Ltd.On Tuesday, J.C. Penney shareholders will press a federal judge to appoint a court-approved committee to represent them in the bankruptcy case. Getting official status would mean forcing the retailer to pay for lawyers and financial advisers who would work on behalf of shareholders. Judges rarely grant such requests for two reasons: The legal fees can be expensive and under the so-called absolute priority rule, all the debt of a company must be paid before shareholders can collect anything.Some of the rally in bankrupt shares might be attributable to short covering, when traders who have bet against a company close their positions by re-buying shares, lifting prices. But the rally could also be fueled by amateur traders, bored in lockdown and looking for a quick buck, using platforms such as Robinhood. The number of Robinhood users holding both Hertz and Whiting Petroleum shares surged after the companies filed for bankruptcy, according to Robintrack, a website unaffiliated with the stock trading platform that uses data to show trends.“No one ever loses equity in a bankruptcy case,” U.S. Bankruptcy Judge David Jones said during a status conference in the J.C. Penney case last month. “Equity gets lost long before the case is filed.”Under U.S. bankruptcy law, shareholders are last in line for any kind of payout -- behind the lawyers, lenders, and vendors -- making a recovery for shares unusual. The size and scope of payouts is usually determined by a so-called Chapter 11 plan, which creditors vote on and send to a federal judge for approval. Those plans often leave even high-ranking creditors getting less than they’re owed.The price hikes among the bankrupt include:Hertz, which climbed 95% since it filed bankruptcy on May 22J.C. Penney, up 167% since May 15Whiting Petroleum, up 835% since April 1Pier 1 Imports Inc. more than doubled in the last two trading sessions, though it’s still down 97% since filing for bankruptcy on Feb. 17Companies that have begun planning for bankruptcy also saw their shares surge Monday, including:Chesapeake Energy Corp. jumped 182%GNC Holdings Inc. rose 106%Representatives for Chesapeake, Hertz and Whiting did not reply to a request for comment. GNC and J.C. Penney declined to comment.Meanwhile, debt securities tied to the companies continue to trade below par, implying a less-than-full recovery for creditors who are ranked well ahead of shareholders.Whiting Petroleum does have a plan on file which calls for a payout to current stockholders in the form of new shares. But as with most everything in bankruptcy, the plan is subject to court approval and could face challenges from higher-ranking creditors.(Adds Pier 1 Imports)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oil outlook as Chesapeake Energy Corp. soars over 100%
    Yahoo Finance Video

    Oil outlook as Chesapeake Energy Corp. soars over 100%

    Yahoo Finance’s Jared Blikre joins Heidi Chung to discuss the latest oil & energy outlook as OPEC and allies agree to extend record oil production cut.

  • Why Is Whiting (WLL) Up 30.2% Since Last Earnings Report?
    Zacks

    Why Is Whiting (WLL) Up 30.2% Since Last Earnings Report?

    Whiting (WLL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

  • Implied Volatility Surging for Whiting Petroleum (WLL) Stock Options
    Zacks

    Implied Volatility Surging for Whiting Petroleum (WLL) Stock Options

    Investors need to pay close attention to Whiting Petroleum (WLL) stock based on the movements in the options market lately.

  • The Zacks Analyst Blog Highlights: Hertz Global, Avis Budget Group, LATAM Airlines and Whiting Petroleum
    Zacks

    The Zacks Analyst Blog Highlights: Hertz Global, Avis Budget Group, LATAM Airlines and Whiting Petroleum

    The Zacks Analyst Blog Highlights: Hertz Global, Avis Budget Group, LATAM Airlines and Whiting Petroleum

  • Business Wire

    ATTENTION WHITING PETROLEUM EMPLOYEES/INVESTORS: KlaymanToskes Commences Investigation into Damages Sustained During Coronavirus Pandemic in Whiting Petroleum Stock with Full-Service Brokerage Firms

    KlaymanToskes ("KT"), www.klaymantoskes.com, announced today that it is investigating the damages sustained during the Coronavirus ("COVID-19") pandemic by employees and investors who held large positions in Whiting Petroleum (NYSE:WLL) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and mismanagement of large positions that resulted in employees and investors suffering substantial losses.

  • Those Mnuchin Fracker Loans Look More Like Equity
    Bloomberg

    Those Mnuchin Fracker Loans Look More Like Equity

    (Bloomberg Opinion) -- Someone should tell Treasury Secretary Steven Mnuchin about the United States Oil Fund LP. This is the ETF making all the headlines for all the wrong reasons of late. A nominally cheap and easy way to speculate on oil, its use of rolling futures positions made for dreadful returns and, most recently, almost certainly contributed to oil’s plunge into negative pricing. It seems likely more than one retail wannabe wildcatter is mystified as to why they ended up effectively paying others to take their “barrels.”Knowing what you’re actually getting is important with any investment, of course. Which brings us to Mnuchin’s musings about extending government loans to struggling oil and gas producers, as reported by Bloomberg News on Thursday evening. Like USO owners, the lenders here — hello taxpayers — may find their collateral somewhat slippery. Also like the USO, their mere presence could make things worse.Details are scant; there is talk of investment-grade firms maybe tapping a Federal Reserve lending program while “alternative structures” are considered for the riskier sort. But I was struck most by this line in the article:The administration is also considering taking financial stakes in exchange for some loans, and some firms might be asked to reduce production, the person said.Hmm. “Loans” that grant you a stake and a say in critical operational decisions. That almost sounds like equity.There’s a reason for that. It is common for the riskiest exploration and production companies to only have one slug of secured financing in the form of reserve-based lending. This is a credit line from a consortium of banks secured against the value of the company’s oil and gas reserves. The value is typically reappraised twice a year, and energy prices are obviously a huge variable. You can imagine even one day of negative oil prices doesn’t make for a warm and fuzzy meeting with your account manager. The vast majority of respondents to a sector survey conducted by the law firm Haynes and Boone LLP expected borrowing bases to be cut by at least 20%. And that survey was conducted last month.After a decade of applying the WeWork growth model to oil and gas, the industry has very little wiggle room. A wall of debt maturities is imminent, kicking in just as most production hedges roll off. So those credit lines may well be needed to cover repayments. Even a small cut could leave E&P firms exposed or in outright breach of covenants. Such considerations lay behind Whiting Petroleum Corp.’s decision to file for bankruptcy at the beginning of the month, as analysts at CreditSights laid out in a recent report.For many firms, once you get beyond reserve-based lending, there’s precious little else to lend against. The capital stack is highly encumbered already. At almost 80%, energy high-yield issuers tracked by CreditSights have the highest proportion of net debt in their enterprise value of any major sector.You may notice things looked much better in 2016. Oil crashed that year, too, but investors still had hope then of oil prices coming back. E&P companies took full advantage with a banner year for equity issuance. Fast forward, and investors have been backing away from the sector, especially its most indebted members, way before Covid-19 went global and Saudi Arabia and Russia went postal. A fresh source of capital must be found.So it makes perfect sense that the government “loans” being touted around Washington look more like equity, because that’s what they would be, in practical terms. And the feds would be taking a position in E&P companies at a particularly bracing juncture, with oil prices in the tank and debt maturities rolling in. Exactly what they — I mean, we — would be taking on is something of a mystery, given the lack of clarity about oil demand, prices and production even six months out.Moreover, loans to the weakest E&P firms would perpetuate the underlying condition afflicting the sector before Covid-19 hit: too much production and too little risk management. If there’s too much oil, it’s less than optimal to put more money into the business of producing more oil. How about a government debtor-in-possession facility instead?At such times, we are lucky to have Continental Resources Inc. to exemplify the industry chutzpah of which, unlike cash, there is seemingly never a shortage. Having not bothered with boring stuff like hedging, founder Harold Hamm has alleged manipulation on the part of everyone from Saudi Arabia to “a flawed new computer model.” In the latest twist, Continental has reportedly invoked force majeure on a delivery contract for its oil — and honestly, caught on the wrong side of a price move, who hasn’t blamed God on occasion?Similarly, President Donald Trump’s administration has been throwing fistfuls of spaghetti at the wall to bail out oil and gas producers, ranging from threats of tariffs on foreign barrels to the notion of paying E&P firms to keep oil in the ground and rebranding it as a strategic reserve. Equity dressed up as loans would represent a further step down this path. God knows if it will actually happen, especially if House Democrats have a say. But like the hapless ETF investor, you may soon be the (proud?) quasi-owner of something to do with oil.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Whiting Petroleum Corporation Enters into Restructuring Support Agreement With Certain of its Senior Noteholders and Files Chapter 11 Reorganization Plan and Disclosure Statement
    Business Wire

    Whiting Petroleum Corporation Enters into Restructuring Support Agreement With Certain of its Senior Noteholders and Files Chapter 11 Reorganization Plan and Disclosure Statement

    Whiting Petroleum Corporation Enters into Restructuring Support Agreement With Certain of its Senior Noteholders

  • Oil's rout isn't over as coronavirus pushes crude players to the brink of 'blowing up'
    Yahoo Finance

    Oil's rout isn't over as coronavirus pushes crude players to the brink of 'blowing up'

    U.S. crude’s unprecedented rout on Monday was a harbinger for prices that will likely continue to “fall off a cliff” as the coronavirus suppresses global demand.

  • Whiting Petroleum Corporation Receives Non-Compliance Notice from NYSE
    Business Wire

    Whiting Petroleum Corporation Receives Non-Compliance Notice from NYSE

    Whiting Petroleum Corporation Receives Non-Compliance Notice from NYSE

  • Demand Destruction Bigger Concern than Production Cuts
    FX Empire

    Demand Destruction Bigger Concern than Production Cuts

    The world is going to be oversupplied with crude oil ahead of the May 1 production cuts. The tanks are going to be filled as well as the off-shore tankers. The move by OPEC+ is not strong enough to tighten up supply over the short-run.

  • Bloomberg

    Oil Market Is Desperate for Saudi Arabia to Flatten the Curve

    (Bloomberg Opinion) -- It is entirely fitting that the one of best performing energy stock on Friday morning was recently bankrupt Whiting Petroleum Corp. As President Donald Trump’s initial tweet-heard-round-the-(oil)-world has snowballed into a seething mass of optimistic rumor, so the more — how to put this? — speculative stocks have floated to the top. Just as crude oil recorded a 25% gain Thursday by moving all of $5 a barrel, Whiting was near the top of the leaderboard on the back of a 4-cent rally.Saudi Arabia’s call for an emergency Zoom session on Monday, along with reports that Russia may be coming around to the idea of supply cuts, lend credence to the idea that, even if Trump wildly jumped the gun, cuts are coming. Cue mass celebration in the oil market.To which, one can only say this: Supply. Cuts. Were. Coming. Anyway. As I wrote here, the collapse in demand means we will quickly run out of places to stash surplus oil. Which means refiners stop buying (almost regardless of price) and production gets shut in (some is already). Saudi Arabia and Russia would love to get the U.S. to sign up as a willing partner in making this look like market management rather than managed retreat — and Trump may be of a similar mind.Getting cuts of anywhere near the 10 million barrels (a day, we think) cut that Trump touted looks very unlikely given the time pressure. On Thursday, I quoted Kevin Book of ClearView Energy Partners as saying, “Tweets travel at the speed of light; barrels move at 10 knots.” To which we can add that the novel coronavirus moves at an exponential pace. Distancing measures mean demand in April could be down by 20 million or 30 million barrels a day. Hence, a cut of 10 million barrels a day would only extend the timeline for storage filling up and, in order to work, would have to happen very quickly.The country best able to take production down quickly is, as ever, Saudi Arabia. And as painful as it might be to the country’s pride, reversing its stance of maximizing output, adopted less than a month ago, would make sense. Right now, the world has perhaps 700 million barrels of spare storage capacity for crude oil which, assuming 20 million barrels a day of excess supply, would fill in five weeks. As the tanks top out, oil prices would begin collapsing toward single digits well before that deadline.An immediate cut of, say, 7 million barrels a day, with more than half of that by Saudi Arabia, would push that deadline to more like eight weeks. Think of this as the oil world’s equivalent of flattening the curve, but with the idea being that you try to stave off storage tanks being overwhelmed rather than ICU beds. Damage would still be unavoidable. But Saudi Arabia makes more revenue by exporting 6.5 million barrels a day at $20 apiece than it would 10.5 million at $10. The resulting drop in tanker rates might also support the front end of the Brent crude oil curve, which is where unhedged OPEC producers make their money.Nice theory. But there’s no guarantee of such immediate cuts being agreed at all — remember that OPEC meeting all of four weeks ago? Best case is that oil producers somehow extend the deadline for storage capacity maxing out, hopefully getting to a point in late May where demand has bottomed out and the inventory glut is merely historic rather than apocalyptic. And even at $20-$30 Brent, many U.S. frackers are still underwater, especially as they’re producing lighter grades more suited for (unwanted) gasoline and suffer discounts to benchmark pricing the further inland they are.Set against the current reality of cratered oil demand, a lot of things need to go right — and quickly — to justify a hopeful outcome for producers. Four cents actually sounds about right for this rally.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • The Largest Oil Market Intervention In History?
    Oilprice.com

    The Largest Oil Market Intervention In History?

    While the figures quoted in Trump’s tweet appear to be unrealistic, there are now rumors of a global effort to cut production, with OPEC hosting a meeting on Monday on the topic

  • How Did Oxy’s Bosses Get Paid a Bonus?
    Bloomberg

    How Did Oxy’s Bosses Get Paid a Bonus?

    (Bloomberg Opinion) -- There are a couple of ways of summarizing what’s happened with Occidental Petroleum Corp. since CEO Vicki Hollub went all-in on buying Anadarko Petroleum Corp. last year. One would be that the deal trashed Oxy’s relationship with shareholders and saddled it with too much debt, leading to chronic underperformance and, when disaster struck, a massive dividend cut. An alternative take might be:Ms. Hollub enhanced the value of Occidental’s portfolio of assets through the Anadarko acquisition, which strengthened Occidental’s long-term value proposition.That second one comes from Oxy’s preliminary proxy statement, filed this week.Here’s a quick sanity check by way of a chart. See which of the two assessments most closely aligns with this set of squiggles:One detects some uneasiness on Oxy’s part. It took the trouble to lay out “realizable” pay for executives in its proxy; the idea being that the actual value of stock-based awards plummeted with Oxy’s price. Hence, while Hollub’s headline total compensation for 2019 clocks in at almost $16 million, the company calculates its value as of March 24 was a mere $4.4 million. Salaries for 2020 have been slashed (although these typically account for only 10-15% of total compensation). Plus, the proxy discloses that Oscar Brown, the head of strategy who played a leading role in the Anadarko deal, is no longer with the company.Clearly, Hollub’s pay package isn’t worth what it was a couple of months ago. On the other hand, compared with a shareholder who just had most of their dividend taken away, the CEO is still being paid to wait. After all, the board presumably expects Hollub to preside over some sort of recovery in the share price (and, thereby, connected stock-based awards).Moreover, while realizable pay may now be worth a fraction of what it was when the board met in February, the more pertinent question is why was it worth so much in February? It was clear by then, even before the corona-crash, that Oxy’s gamble had inflicted big losses on shareholders and forced it to cut spending and growth targets. Total shareholder return in 2019 was negative 28% — worse than the sector, the market and the year before. Yet Hollub’s headline compensation rose by 13%.Then there are bonuses, typically adjusted to some percentage of a target level based on company performance. Oxy’s percentage for 2019: 175%. As is usual with these things, that number derives from a Rube Goldberg-esque set of performance metrics and weightings. In this case, it was complicated further by being split between pre- and post-acquisition objectives.Astoundingly, the executives were deemed to have exceeded expectations even more on the latter bit. Defined in exceedingly narrow terms, I suppose one could have argued back in February that, judged on things like realizing synergies or whatnot, the executives were hitting their marks. But context is everything, and the context here is a debacle. So perhaps stuff like realizing synergies should have been redefined as the bare minimum rather than bonus-worthy. Again, one detects a certain uneasy recognition of the dissonance here with the majority of Hollub’s bonus being paid in restricted stock units rather than cash.Oxy isn’t alone in setting executive compensation at odds with investors’ experience (see this). The same day it filed its proxy, Whiting Petroleum Corp. filed for chapter 11. While this Bakken-basin fracker cited Covid-19 and the Saudi-Russian oil price war, it already had an underlying (and familiar) condition of rising leverage and weak or negative free cash flow. Announcing its bankruptcy, the company also disclosed bonuses for its top executives, approved just days before, worth $14.6 million. That is actually two-thirds higher than Whiting’s cash balance at the end of December.Doug Terreson, an analyst at Evercore ISI who has been beating the drum on this misalignment for years, calculates that 15 CEOs of the integrated oil and exploration and production companies he covers were paid more than $2 billion in aggregate over the past decade. In exchange, shareholders netted a total return of zero, while the S&P 500 generated a positive total return of more than 250%. “This pay for performance disconnect has not gone unnoticed by the buy-side and is part of the reason why investors avoid energy stocks. The deck is stacked against them,” he writes.Still, the sheer drama of Oxy’s past year marks it out. Consider that the same filing lauding Oxy’s “enhanced” value after swallowing Anadarko also details the company’s recent agreement with one Carl Icahn under the award-worthy euphemism of “Board Refreshment.” The dissonance is deafening.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Negative Oil Prices? They’re Already Here
    Bloomberg

    Negative Oil Prices? They’re Already Here

    (Bloomberg Opinion) -- Oil markets are in pain. Demand has plummeted, with about three billion people under lockdown just as the world faces a historic supply glut. The world’s crude storage, meanwhile, is filling fast, from underground caverns to rail cars and tankers. For landlocked producers, that hardly matters: Some are already paying customers to take their oil away.The consequences will be long-lasting. Drillers in the U.S. and elsewhere are scaling back or shutting down production. Against a background of steep spending cuts, not all of that will be swiftly reversible. Price relief will hinge on the world’s convalescence.The collapse in appetite for gasoline, jet fuel and diesel has been unprecedented in speed and scale. Goldman Sachs Group Inc. estimated Monday that with economies representing 92% of global gross domestic product now under some form of social distancing, the loss of demand this week stands at 26 million barrels per day, roughly a quarter below last year’s levels. Over a month, that’s almost 800 million barrels lost. Numbers since published from the shuttered economies of Italy and Spain suggest levels of destruction could be even worse. Spanish diesel demand is down 61%. The collapse is translating into a surplus that’s straining refineries, pipelines and the world’s limited ability to squirrel away oil.There is no precise estimate for how much capacity the world has to store oil products. Analysts at S&P Global Platts estimate 1.4 billion barrels, including 400 million of floating storage. So far, 50% of that has been used: The figure will rise to 90% by the end of April. It’s a squeeze visible in freight rates, with fleets of very large carriers filling up, making it harder to use them to store oil or even move it to a buyer. Costs for the benchmark journey from the Middle East to China have risen sevenfold; Reliance Industries Ltd. paid $400,000 a day for a supertanker to haul oil from the Middle East to India’s west coast in early April.For landlocked drillers, though, there are greater worries. They are facing a lack of local storage, and pipeline companies asking them to cut back or prove they have a buyer for their crude before loading. They simply can’t get oil to the right place, at the current price. Meanwhile, refineries are cutting back as they reach storage limits.This all means that negative oil prices  — when producers are effectively paying customers to take the oil — aren’t only possible, but already a reality. The global benchmarks for oil, West Texas Intermediate and Brent, have dropped about two-thirds this year. They aren’t about to dip below zero. You won’t get paid for filling up at the pump. In the neighborhood of $20 a barrel, though, where your oil is now matters almost more than how much it costs you to produce it.Check out grades that demand expensive refining or in locations requiring costly transport. Wyoming Asphalt Sour, used in paving, was among the first to slide into the red at a negative $0.19 per barrel in mid-March, as my colleagues Javier Blas and Sheela Tobben reported last month. Other producers may be selling at a loss, effectively subsidizing buyers to take their output. Western Canadian Select, the benchmark price for the giant oil-sands industry in Canada, is at around $5, with Bakken crude in Guernsey, Wyoming, in single digits too. The gap with WTI has become wider.Many of these producers are already cutting back, or shutting down. Whiting Petroleum Corp., a shale champion, filed for bankruptcy Wednesday. Oil explorers, servicing companies and others are in severe pain too, and the squeeze won’t be felt only in the U.S. Russia says it won’t boost supply at current prices. Ecuador has failed to find buyers.What does this mean for an eventual recovery? First, the extent of demand loss means that even a resolution to the Saudi-Russian spat would help only a little, perhaps easing pressure on the world’s fleet of very large oil carriers, known as VLCCs.A real pick-up in prices will require demand to come back. At that point, it may not require much to prompt a temporary spike, depending on how much is stored, locked up by traders through financial contracts, or taken out for good. Geopolitics, with oil-producing nations strained, may also help a little. For the time being, though, negative prices are here to stay.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • US STOCKS-Wall Street's major indexes slammed as virus anxiety grows
    Reuters

    US STOCKS-Wall Street's major indexes slammed as virus anxiety grows

    The key S&P 500 index was down more than 4% on Wednesday after a dire warning on the U.S. death toll from the coronavirus and heightened nerves over the upcoming earnings reporting season sent investors running from even the most defensive equities. The blue-chip Dow Jones Industrial Average and benchmark S&P 500 indexes were set to extend losses after suffering their worst first quarter as President Donald Trump warned Americans of a "painful" two weeks ahead and health officials highlighted research predictions of an enormous jump in virus-related deaths.

  • US STOCKS-Dow starts second quarter with 900-point slide as virus anxiety grows
    Reuters

    US STOCKS-Dow starts second quarter with 900-point slide as virus anxiety grows

    The Dow Jones Industrial Average fell more than 900 points on Wednesday as a plunge in new orders for U.S.-made goods and a dire warning on U.S. death toll from the coronavirus pushed investors away from stocks to safer assets. The blue-chip Dow and the S&P 500 were set to extend losses after suffering their worst first quarter as U.S. President Donald Trump warned Americans of a "painful" two weeks ahead, with health officials modeling an enormous jump in virus-related deaths. The financials sector was among the biggest drags on the S&P 500.

  • US STOCKS-Dow falls 600 points to start second quarter as virus anxiety grows
    Reuters

    US STOCKS-Dow falls 600 points to start second quarter as virus anxiety grows

    The Dow Jones fell 600 points on Wednesday as investors fled to safe-haven assets after new orders for U.S.-made goods plunged to an 11-year low and the White House issued a dire warning on the U.S. death toll from the coronavirus pandemic. The blue-chip Dow and the S&P 500 were set to extend losses entering into the second quarter, as efforts to contain the outbreak resulted in deserted shopping streets, massive staff furloughs and a halt in business activity. Companies on the benchmark index have lost about $6.3 trillion in market value so far this year, even as major governments and central banks have announced trillions of dollars in measures to thwart a global recession.

  • Oilprice.com

    Shale Giant Files For Bankruptcy As Oil Price War Rages On

    U.S. shale giant Whiting Petroleum has announced that it has filed for bankruptcy protection as the oil price war continues to weigh on domestic drillers

  • Whiting Petroleum Corporation Reaches Agreement in Principle with Certain of Its Noteholders to Pursue Consensual Financial Restructuring
    Business Wire

    Whiting Petroleum Corporation Reaches Agreement in Principle with Certain of Its Noteholders to Pursue Consensual Financial Restructuring

    Whiting Petroleum Corporation Reaches Agreement in Principle with Certain of its Noteholders to Pursue Consensual Financial Restructuring

  • Whiting Petroleum Corporation Takes Measures to Preserve Liquidity
    Business Wire

    Whiting Petroleum Corporation Takes Measures to Preserve Liquidity

    Whiting Petroleum Corporation Takes Measures to Preserve Liquidity