Independent oil and gas company,
Whiting Petroleum Corp.
), has closed the offering of its senior notes worth $400
million, scheduled to mature in 2021.
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Whiting Petroleum issued the notes at 101% of their par value,
while the expected rate of return at maturity is 5.750%. The
unsecured notes are guaranteed by Whiting Oil and Gas Corp., a
wholly owned subsidiary of Whiting Petroleum.
The company received net proceeds of $399.3 million (after
deducting the discount given to initial investors and
issue-related expenses) from the offering, which will likely be
utilized to finance its capital expenditure programs and meet
other corporate expenses.
Headquartered in Denver, CO, Whiting Petroleum has an oil-focused
asset base. The company acquires, exploits, develops and explores
for crude oil, natural gas and natural gas liquids.
Whiting Petroleum trades in a 52-week range of $40.19 to $60.65.
The exploration and production (E&P) company's stock has been
trading toward the higher end of the range for the greater part
of the month with shares settling at $59.98 on Sep 27.
Whiting Petroleum has consistently surpassed the Zacks Consensus
Estimate for the last three quarters with an average surprise of
8.24%. We expect this positive trend to continue in the
forthcoming earnings release. The company also sports an
impressive long-term earnings growth of 11.16%.
All these make Whiting Petroleum a Zacks Rank #2 (Buy) stock,
implying that it is expected to perform better than the broader
U.S. equity market over the next one to three months.
Meanwhile, one can also consider other stocks in the E&P
industry such as
Stone Energy Corp.
Matador Resources Co.
) which sport a Zacks Rank #1 (Strong Buy) or
Memorial Production Partners LP
) which currently holds a Zacks Rank #2 (Buy).