Whiting (WLL) Stock Rises Since Q1 Earnings: Here's Why
The stock of upstream energy operator Whiting Petroleum Corporation WLL has edged up 1.9% since its first-quarter 2022 earnings announcement on May 4. The positive response could be attributed to the company's improvement in year-over-year profits, with help from surging oil prices.
Investors should note that WLL is in the process of tying up with fellow energy explorer, Oasis Petroleum. The merged entity will have the leading Williston Basin position in North Dakota and Montana, with top-tier assets spanning more than 972,000 net acres and an output of about 167,800 barrels of oil equivalent per day, an improved free cash flow generation and a substantial scale of operations.
Now, let's get back to the earnings discussion.
What Did Whiting Petroleum's Earnings Unveil?
Whiting Petroleum reported first-quarter 2022 adjusted net income per share of $4.61, missing the Zacks Consensus Estimate of $5.04 on weaker-than-expected production.
However, the energy explorer's bottom line compared favorably with the year-earlier quarter's earnings of $2.79 on the back of sharply higher oil prices.
Total operating revenues came in at $526.9 million, ahead of the consensus mark of $404 million. Moreover, the top line rose 11.3% from the quarter-ago level of $473.4 million.
The company's free cash flow came in at $150.4 million.
Whiting Petroleum Corporation Price, Consensus and EPS Surprise
Whiting Petroleum Corporation price-consensus-eps-surprise-chart | Whiting Petroleum Corporation Quote
Production & Prices
WLL's total oil and gas production reported a 6.2% sequential decrease to 8,008 thousand barrels of oil equivalent/ MBOE (comprising 80% liquids). Oil volumes at 4,720 thousand barrels (MBbl) fell 3.1% from the level achieved in fourth-quarter 2021, while natural gas output dropped 7.1% to 9,575 thousand cubic feet. Daily production averaged 89 MBOE, in line with the Zacks Consensus Estimate but down from the previous quarter's 92.8 MBOE.
The average crude oil price received during the first quarter was $91.05 per barrel, reflecting a 20.2% rise from the quarter-ago receipt of $75.75. Meanwhile, the average natural gas price declined to $3.37 per thousand cubic feet (Mcf) from $3.68 in the October-December period.
Balance Sheet & Capital Expenditure
As of Mar 31, Whiting Petroleum had approximately $208,000 in cash, cash equivalents and restricted cash, with $50 million in long-term debt. In the reported quarter, the company spent $90.9 million on its capital program.