Friday, October 29, 2010

Whiting Petroleum (NYSE:WLL) Outperforms on Lower Costs

Whiting Petroleum (NYSE:WLL) had a solid quarter based on getting operational costs under control, leading them to beat expectations for earnings per share.

Ticonderoga Securities said, "WLL reported its 3Q last night. Earnings were $0.05 ahead of our $1.27 estimate, driven largely by better than expected costs. Production was in line with our estimate...Based on company guidance, we are raising our 4Q EPS estimate to $1.71 from $1.50, which brings our 2010 full-year estimate to $5.51, up from $5.27. We also revised our 2011 EPS estimate to $7.63 from $6.72.

"We reiterate our rating on the stock due to valuation. Our NAV remains unchanged at $116/share. Currently, the stock trades at 86% of our NAV versus 76% for our coverage universe."

Ticonderoga maintains their "Neutral" on Whiting.

Whiting closed at $98.53, losing $1.48, or 1.48 percent. They have a market cap of just above $5 billion.

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