KLR Group Cuts Price Target on Whiting Petroleum (WLL) Following Recent Debt Exchange

KLR Group maintained a Buy rating on Whiting Petroleum (NYSE: WLL), and cut the price target to $15.00 (from $19.00), following a recent debt exchange for convertible notes. After the exchange, KLR estimates that Whiting exits 2016 with ~$3.6 billion in long term debt, with the earliest maturity in 2018.

Analyst Gail Nicholson commented, "We are decreasing our target price $4 to $15 due to the recent debt exchange for convertible notes offering and anticipated dilution, partly offset by a revision in our equity discount rate. We have revised our equity discount rate to 15%, which reflects a mid-cap valuation as the company's market cap is approaching the $3 billion threshold (includes dilution from debt exchange)."

For an analyst ratings summary and ratings history on Whiting Petroleum click here. For more ratings news on Whiting Petroleum click here.

Shares of Whiting Petroleum closed at $8.56 yesterday.

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