Whiting Petroleum Earnings: Here’s Why Investors Like These Results

Whiting Petroleum Corp. (NYSE:WLL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.27%.

Whiting Petroleum Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 39.73% to $1.02 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 32.09% to $663.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Whiting Petroleum Corp. reported adjusted EPS income of $1.02 per share. By that measure, the company beat the mean analyst estimate of $0.90. It beat the average revenue estimate of $621.68 million.

Quoting Management: James J. Volker, Whiting’s Chairman and CEO, commented, “With the sale of our Postle assets, we have the liquidity to accelerate development of our high rate of return Williston Basin Bakken and DJ Basin Niobrara assets. Our revised 2013 production growth guidance equates to a 12% increase over 2012 levels and a 19% increase excluding the production associated with the Postle assets. In the third quarter we anticipate replacing nearly all of the production from the Postle assets sale, which generated $837 million in net sale proceeds, while increasing our capital budget by only $300 million. We believe this demonstrates the potential of our new, streamlined portfolio and the validity of our asset rationalization strategy.”

Key Stats (on next page)…

Revenue increased 8.14% from $613.37 million in the previous quarter. EPS increased 8.51% from $0.94 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.93 to a profit $0.85. For the current year, the average estimate has moved down from a profit of $3.71 to a profit of $3.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)