Whiting Petroleum Closes Offering - Analyst Blog


Independent oil and gas company, Whiting Petroleum Corp. ( WLL ), has closed the offering of its senior notes worth $400 million, scheduled to mature in 2021.

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. ( SGY ) and Matador Resources Co. ( MTDR ) which sport a Zacks Rank #1 (Strong Buy) or Memorial Production Partners LP ( MEMP ) which currently holds a Zacks Rank #2 (Buy).

MEMORIAL PRODUC (MEMP): Free Stock Analysis Report

MATADOR RESOURC (MTDR): Free Stock Analysis Report

STONE ENERGY CP (SGY): Free Stock Analysis Report

WHITING PETROLM (WLL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: MEMP , MTDR , SGY , WLL



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