#1 - Whiting Petroleum (NYSE:WLL)
Whiting Petroleum (NYSE:WLL) was the first major oil company to throw in the towel. The company filed for bankruptcy on April 2 after the first crash in oil prices. Just two years ago, Whiting was valued at almost $5 billion and was one of the shining stars in the shale industry. The company had properties in North Dakota’s Bakken oilfield.
Under terms of the bankruptcy, Whiting will exchange $2.2 billion of debt for equity. That will allow Whiting to make the best use of the $600 million of cash it has on its balance sheet. However, based on the company’s free cash flow, they have a runway of less than one year.
The problems for Whiting will be said for many of the companies in this presentation. The company is underperforming an already weak oil and gas sector. Over the last 12 months, WLL stock has declined by 98.9%. Overall, the sector has declined by 49.4%.
Fundamentally, Whiting is not profitable and is not expected to be profitable in the next three years. But a larger problem is that the company is also expecting to post lower and lower revenue over the next three years.
Furthermore, WLL has a high debt to equity ratio of 69.6%. However, that has come down from the 98% level it was at five years ago.
About Whiting Petroleum
Whiting Petroleum Corporation, an independent oil and gas company, engages in the acquisition, development, and production of crude oil, natural gas, and natural gas liquids primarily in the Rocky Mountains region of the United States. The company sells its oil and gas production to end users, marketers, and other purchasers.
Read More - Current Price
- $68.03
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
