Ticonderoga Downgrades Whiting Petroleum (WLL) to Neutral; Bakken Backlog Lowers 2011 Production Guidance
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Price: $68.03 --0%
Rating Summary:
13 Buy, 28 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 28 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Ticonderoga downgraded Whiting Petroleum (NYSE: WLL) from Buy to Neutral.
Ticonderoga analyst says, "Our NAV, adjusting for lower volumes and higher cost, declines nearly 4% from $77.50 to $74.50/share. WLL now trades at a P/NAV of 82%, a modest premium to the 78% peer group median. We believe the backlog of wells that now exist in the Bakken could be a lingering issue the second half of this year, and would expect WLL to underperform the group until investors are comfortable that production is back on track."
"WLL hopes to get the backlog of wells back down to 20-25 by year-end, employing two full-time frac crews currently while adding another part-time crew in July. However, fracking crews and services have been a major bottleneck in the Bakken, enough so that we believe there is still some risk and uncertainty in WLL’s production volumes going forward."
For more ratings news on Whiting Petroleum click here and for the rating history of Whiting Petroleum click here.
Shares of Whiting Petroleum closed at $61.34 yesterday.
Ticonderoga analyst says, "Our NAV, adjusting for lower volumes and higher cost, declines nearly 4% from $77.50 to $74.50/share. WLL now trades at a P/NAV of 82%, a modest premium to the 78% peer group median. We believe the backlog of wells that now exist in the Bakken could be a lingering issue the second half of this year, and would expect WLL to underperform the group until investors are comfortable that production is back on track."
"WLL hopes to get the backlog of wells back down to 20-25 by year-end, employing two full-time frac crews currently while adding another part-time crew in July. However, fracking crews and services have been a major bottleneck in the Bakken, enough so that we believe there is still some risk and uncertainty in WLL’s production volumes going forward."
For more ratings news on Whiting Petroleum click here and for the rating history of Whiting Petroleum click here.
Shares of Whiting Petroleum closed at $61.34 yesterday.
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