Whiting Petroleum Corporation’s WLL stock has dipped 3.4% since the company’s first-quarter 2021 earnings announcement on May 5.
Despite this industry player’s impressive earnings and revenue results, and an improved Free Cash Flow guidance for 2021, the firm’s shares failed to display an uptrend possibly due to lack of guidance updates on production and capital expenditure.
Whiting Petroleum reported first-quarter 2021 adjusted net income per share of $2.79, handsomely beating the Zacks Consensus Estimate of $1.45 as well as the sequential quarter’s earnings of $1.46 owing to a significant improvement in commodity price realizations.
Total operating revenues came in at $307.4 million, ahead of the Zacks Consensus Estimate of $229 million. Moreover, the top line improved 44.8% from the quarter-ago level of $212.3 million.
On an encouraging note, the company’s free cash flow of $108.2 million was higher than the fourth-quarter 2020 figure of $89.3 million.
Production & Prices
Whiting Petroleum’s total oil and gas production reported a sequential decrease of 4.2% to 8,090 MBOE (comprising 79% liquids). In particular, oil volumes at 4,822 thousand barrels (MBbl) were down 5.6% from the level achieved in fourth-quarter 2020.
The average realized crude oil price during the first quarter was $53.24 per barrel, reflecting a 40.5% rise from the year-ago realization of $37.89. Moreover, the average realized natural gas liquids price was $17.28 per barrel, up151.2% from the quarter-ago period. Further, natural gas prices were up 173.3% from the prior quarter to $2.05 per thousand cubic feet.
Whiting Petroleum Corporation Price, Consensus and EPS Surprise
Balance Sheet & Capital Expenditure
As of Mar 31, Whiting Petroleum had $24.7 million in cash and cash equivalents. The oil explorer’s long-term debt of $245,000 represented a debt-to-capitalization of 16.6%. In the reported quarter, the company spent $55.6 million on its capital program.
Whiting Petroleum, which aims to become a debt-free company by this year-end, projects to generate $550 million in EBITDAX. Further, management anticipates free cash flow in excess of $300 million for 2021 if oil averages $55 per barrel.