Bakken Play, Refocused Efforts Make Whiting Petroleum (WLL) a Steal - Cramer
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Price: $68.03 --0%
Rating Summary:
13 Buy, 28 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
13 Buy, 28 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Whiting Petroleum (NYSE: WLL) shares are up nearly 5 percent Thursday morning amid comments from CEO James Volker on Jim Cramer's Mad Money last night.
Volker said investors would need to "stay tuned" to Whiting as the company is guiding its third- and fourth- quarter estimates higher. The move will be welcome as shares slid 42 percent following a one cent earnings miss on July 27th.
Whiting is directing its efforts to furthering production and performance, aiming to deliver better results for investors.
What sort of results? Whiting will seek to improve performance in the Bakken shale, where it gets 60 percent of its regional production. Volker says it nets $50 per barrel of oil it produces in the area.
Whiting has hedged about 60 percent of its oil production, further adding to profits as crude prices continue to slide. Additionally, Volker said a $6 million investment to bring a new well online will result in $24 million in revenue over it's lifetime, making it a great investment.
When asked if the Bakken region is important to Whiting, Volker said the area have about 12 to 24 billion of recoverable reserves. The area also only produces 400,000 barrels per day currently, which will ramp to 1.2 million barrels per day over the next five years. So, is it important? "Heck yes, it's important," we imaging Volker might aver.
Volker was also bullish on the prospect the U.S. will pry itself for OPEC's icy grip within the next 10 years, focusing on using more nat-gas reserves.
With Whiting now trading for half its net asset value, Cramer calls the company a steal.
Volker said investors would need to "stay tuned" to Whiting as the company is guiding its third- and fourth- quarter estimates higher. The move will be welcome as shares slid 42 percent following a one cent earnings miss on July 27th.
Whiting is directing its efforts to furthering production and performance, aiming to deliver better results for investors.
What sort of results? Whiting will seek to improve performance in the Bakken shale, where it gets 60 percent of its regional production. Volker says it nets $50 per barrel of oil it produces in the area.
Whiting has hedged about 60 percent of its oil production, further adding to profits as crude prices continue to slide. Additionally, Volker said a $6 million investment to bring a new well online will result in $24 million in revenue over it's lifetime, making it a great investment.
When asked if the Bakken region is important to Whiting, Volker said the area have about 12 to 24 billion of recoverable reserves. The area also only produces 400,000 barrels per day currently, which will ramp to 1.2 million barrels per day over the next five years. So, is it important? "Heck yes, it's important," we imaging Volker might aver.
Volker was also bullish on the prospect the U.S. will pry itself for OPEC's icy grip within the next 10 years, focusing on using more nat-gas reserves.
With Whiting now trading for half its net asset value, Cramer calls the company a steal.
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