Whiting Petroleum Corp. (WLL) saw a big move last session, as the company’s shares fell by about 20% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This continues the recent downtrend for WLL, as the stock is now down about 25% since Mar 18.
The debt-laden company had to resort to offering 35 million shares of its common stock at a 22% discount. On Mar 24, Whiting Petroleum announced the pricing of $750 million aggregate principal amount of 6.25% senior notes due 2023 and another $1 billion aggregate principal amount of 1.25% convertible senior notes due 2020.
Although this slump was obviously disappointing, the oil and gas company has seen 13 positive revisions and its current year earnings consensus has moved higher over the past few weeks. This suggests that the recent slump might be a temporary blip on the radar for WLL. So make sure to keep an eye on this stock going forward to see if yesterday’s price decline is confirmed by more weakness, or if it can rebound in the weeks ahead.
WLL currently has a Zacks Rank #3 (Hold).
A better-ranked stock in the oil US export and production sector is Midstates Petroleum Company, Inc. (MPO), holding a Zacks Rank #2 (Buy).
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