Dahlman Rose Cuts Price Target on Whiting Petroleum (WLL), Strongly Levered to Price of Oil

Dahlman Rose is reiterating its Buy rating on shares of Whiting Petroleum (NYSE: WLL), but is cutting its price target from $73 to $50.

The company recently offered an update on the status of its 11 most recent well in North Dakota. The firm reports that while the results were positive, there was nothing spectacular announced. The 11 wells IP's were found to be ranging from 3,065 BOE/d to 1,627 BOE/d.

An analyst at Dahlman comments, "While the broader Lewis & Clark area still has results that are lower than its core, there are clearly strong spots, i.e. Pronghorn, within the large 254K net acreage position."

To go inline with the pullback and oil and the company's current production rates, the firm is reducing its 2011 and 2012 cash flow estimates from $1.296 billion and $1.609 billion to $1.221 billion and $1.278 billion. Earnings per share estimates for 2011 and 2012 were cut from $4.03 and $5.20 to $3.60 and $3.35. Dahlman's estimates are based on oil at $92.78 in 2011 and at $82.06 in 2012.

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 $38.60 yesterday.

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