NEW YORK (TheStreet) -- Shares of Whiting Petroleum (WLL) - Get Report are tumbling 7.48% to $6.80 this afternoon after the company reported 2016 second quarter financial results that were lower than expected after yesterday's closing bell.
The Denver-based oil company reported an adjusted loss of 70 cents per share and revenue of $339.6 million for the quarter. Analysts were looking for the company to report a loss of 30 cents per share and revenue of $403.76 million.
CEO James Volker said the company has been working to strengthen its balance sheet.
"We exchanged an additional $1.1 billion of debt into mandatory convertible debt, bringing our total to $1.6 billion year-to-date. These debt exchanges have effectively reduced Whiting's debt by $810 million as of July 27, 2016 by conversion into stock," he noted.
Additionally, oil prices are falling to three-month lows today, negatively impacting the stock.
Crude oil (WTI) is down 1.74% to $41.19 per barrel and Brent crude is falling 1.79% to $42.69 per barrel.
Oil prices have been falling lately due to mounting concern over a worldwide fuel glut. Genscape added to the concern today, reporting a build of 328,000 barrels at the Cushing, OK delivery hub for U.S. crude futures, CNBC reports.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and deteriorating net income.
You can view the full analysis from the report here: WLL