Ahead Of The Bell: Whiting Petroleum Upgraded

NEW YORK (AP) — Shares of Whiting Petroleum Corp. are trading at an attractive level and are positioned to bounce back given the company's oil leverage and rising internal cash flows, an analyst said Thursday as he upgraded the stock.

Even though the shares have climbed about 35 percent since the start of the third quarter, Credit Suisse analyst Anish Patel said the shares are trading at a steep discount, and increased his share price target to $54 from $42. He also raised his rating to "Outperform" from "Neutral."

Whiting Petroleum is well positioned for growth in a number of ways, the analyst said. Patel pointed to the Denver-based company's significant oil leverage, given that oil is 75 percent of the production and reserve mix. As oil prices climb, the company stands to gain, he said.

Patel said the company is on track for 2009 production growth between 10 percent and 12 percent, and "we see acceleration potential in 2010 from rising internal cash flows." Whiting strengthened its financial liquidity through raising a combined $700 million from equity, convertible preferred offerings and asset sales year-to-date, Patel added.