NYSE:WLL

Stock Analysis Report

Executive Summary

Whiting Petroleum Corporation engages in the acquisition, exploration, development, and production of crude oil, natural gas liquids, and natural gas primarily in the Rocky Mountains region of the United States.

Rewards

Trading at 54.9% below its fair value

Earnings are forecast to grow 57.44% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Very undervalued with moderate growth potential.


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Concho Resources

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Share Price & News

How has Whiting Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WLL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-20.4%

WLL

0.4%

US Oil and Gas

1.5%

US Market


1 Year Return

-90.1%

WLL

-18.7%

US Oil and Gas

20.1%

US Market

Return vs Industry: WLL underperformed the US Oil and Gas industry which returned -18.7% over the past year.

Return vs Market: WLL underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

WLLIndustryMarket
7 Day-20.4%0.4%1.5%
30 Day-47.8%-9.4%1.4%
90 Day-45.4%-5.9%8.7%
1 Year-90.1%-90.1%-15.5%-18.7%22.7%20.1%
3 Year-93.4%-93.4%-13.0%-21.2%50.1%40.5%
5 Year-98.1%-98.1%-21.9%-33.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Whiting Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Whiting Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WLL ($2.92) is trading below our estimate of fair value ($6.47)

Significantly Below Fair Value: WLL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WLL is good value based on its PE Ratio (2.4x) compared to the Oil and Gas industry average (9x).

PE vs Market: WLL is good value based on its PE Ratio (2.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: WLL is good value based on its PEG Ratio (0x)


Price to Book Ratio

PB vs Industry: WLL is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Whiting Petroleum forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

57.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WLL's forecast earnings growth (57.4% per year) is above the savings rate (1.7%).

Earnings vs Market: WLL's earnings (57.4% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WLL's revenue (4.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: WLL's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WLL is forecast to be unprofitable in 3 years.


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has Whiting Petroleum performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLL has high quality earnings.

Growing Profit Margin: WLL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WLL has become profitable over the past 5 years, growing earnings by 17.9% per year.

Accelerating Growth: WLL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WLL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-9%).


Return on Equity

High ROE: WLL's Return on Equity (2.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Whiting Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: WLL's short term assets ($355.3M) do not cover its short term liabilities ($806.5M).

Long Term Liabilities: WLL's short term assets ($355.3M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: WLL's debt to equity ratio (68.6%) is considered high.

Reducing Debt: WLL's debt to equity ratio has increased from 65.1% to 68.6% over the past 5 years.


Balance Sheet

Inventory Level: WLL has a high level of physical assets or inventory.

Debt Coverage by Assets: WLL's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WLL is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: WLL is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Whiting Petroleum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WLL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WLL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WLL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WLL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WLL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Brad Holly (48yo)

2.3yrs

Tenure

US$5,432,235

Compensation

Mr. Bradley J. Holly, also known as Brad, has been President and Chief Executive Officer of Whiting Petroleum Corporation since November 1, 2017. Mr. Holly served as an Executive Vice President of U.S. Ons ...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD5.43M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bradley Holly
Chairman2.3yrsUS$5.43m0.21% $558.5k
Bruce DeBoer
Chief Administrative Officer0.5yrsUS$1.92m0.045% $120.5k
Correne Loeffler
Chief Financial Officer0.5yrsno datano data
Charles Rimer
Chief Operating Officer1.3yrsno data0.011% $28.2k
Eric Hagen
Vice President of Corporate Affairs0.5yrsno datano data
Kevin Kelly
Vice President of Marketing1.3yrsno datano data
Chris Edwards
Vice President of Human Resources0.5yrsno datano data
Timothy Sulser
Chief Strategy Officer0.5yrsno data0.0057% $15.3k
Sirikka Lohoefener
VP & Controller4.9yrsno data0.012% $30.8k

0.5yrs

Average Tenure

45yo

Average Age

Experienced Management: WLL's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bradley Holly
Chairman2.3yrsUS$5.43m0.21% $558.5k
Michael Walen
Independent Director6.8yrsUS$281.50k0.029% $77.4k
William Hahne
Director12.3yrsUS$290.50k0.035% $92.1k
Lyne Andrich
Director0.4yrsno data0.024% $62.9k
Carin Knickel
Independent Director4.6yrsUS$256.60k0.029% $76.0k
Thomas Aller
Independent Director17.1yrsUS$289.50k0.036% $95.7k
James Catlin
Lead Director0yrsUS$231.50k0.090% $240.0k
Philip Doty
Independent Director9.5yrsUS$295.50k0.029% $76.6k
Michael Hutchinson
Director0.4yrsno data0.024% $62.9k

5.7yrs

Average Tenure

67yo

Average Age

Experienced Board: WLL's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Whiting Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Whiting Petroleum Corporation
  • Ticker: WLL
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$266.595m
  • Shares outstanding: 91.30m
  • Website: https://www.whiting.com

Number of Employees


Location

  • Whiting Petroleum Corporation
  • 1700 Broadway
  • Suite 2300
  • Denver
  • Colorado
  • 80290
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLLNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2003
WHT1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2003
WLL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2003

Biography

Whiting Petroleum Corporation engages in the acquisition, exploration, development, and production of crude oil, natural gas liquids, and natural gas 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. As of December 31, 2018, it had interests in 2,097 net productive wells on approximately 539,300 net developed acres, as well as total estimated proved reserves of 520.1 million barrels of oil equivalent. The company was founded in 1980 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:07
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.