Fundamentally- The company is losing money at the moment. With leveraged debt, a high balance sheet, and high production costs, the company could see 1 billion go out the door this year.
Despite cutting its capital budget in half to $2 billion, Whiting is still outspending deprecation charges which puts pressure on the balance sheet at current times. This balance sheet has already been hit hard as the flattish growth seen sequentially throughout 2015 is actually disappointing given the committed spending for the year.
The company does have large reserves though. The company reported 780 million barrels of oil in reserves equivalent. which is enough reserves to produce 160,000 barrels of oil for the next 13-14 years. But nowadays which company doesn't have large reserves?
The company most recently reports to be investing 2 billion, 2 thirds of that in the rockies, thus creating sufficient production for 160,000 barrels per day for the first quarter, and the rest of the year alike.
Even if technically there was a perfect long opportunity here, I wouldn't take it.
Despite cutting its capital budget in half to $2 billion, Whiting is still outspending deprecation charges which puts pressure on the balance sheet at current times. This balance sheet has already been hit hard as the flattish growth seen sequentially throughout 2015 is actually disappointing given the committed spending for the year.
The company does have large reserves though. The company reported 780 million barrels of oil in reserves equivalent. which is enough reserves to produce 160,000 barrels of oil for the next 13-14 years. But nowadays which company doesn't have large reserves?
The company most recently reports to be investing 2 billion, 2 thirds of that in the rockies, thus creating sufficient production for 160,000 barrels per day for the first quarter, and the rest of the year alike.
Even if technically there was a perfect long opportunity here, I wouldn't take it.
