NEW YORK (TheStreet) -- Whiting Petroleum Corp. (WLL) - Get Report shares closed Monday's trading session down 4.19% to $17.39 along with falling oil prices due to persisting concerns about growing oil supplies.
Crude oil (WTI) is retreating 1.79% to $43.80 per barrel and Brent crude is tumbling 1.27% to $47.38 per barrel, according to the CNBC.com index.
Even though analysts see domestic output declining, ongoing high production in other countries will keep the market saturated, the Wall Street Journal said.
Additionally, China's move to cut interest rates is leading investors to be even more bearish on oil's futures, adding to concerns about the slowing economy.
Based in Denver, CO, Whiting Petroleum is an independent oil and gas company that acquires, explores, develops, and produces crude oil, natural gas liquids, and natural gas in the Rocky Mountains and Permian Basin regions of the U.S.
Separately, TheStreet Ratings team rates WHITING PETROLEUM CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate WHITING PETROLEUM CORP (WLL) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally high debt management risk.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WHITING PETROLEUM CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, WHITING PETROLEUM CORP reported lower earnings of $0.80 versus $3.07 in the prior year. For the next year, the market is expecting a contraction of 181.9% in earnings (-$0.66 versus $0.80).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 198.6% when compared to the same quarter one year ago, falling from $151.44 million to -$149.27 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, WHITING PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $326.00 million or 42.58% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 69.16%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 157.93% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- You can view the full analysis from the report here: WLL