NEW YORK (TheStreet) -- Whiting Petroleum (WLL) - Get Report stock is falling 5.45% to $21.16 in afternoon trading on Friday after U.S. crude oil prices fell close to the largest monthly decrease since 2008, Reuters reports.
Brent crude prices may also set a monthly record after five weeks of decreases as production continues to rise in the Middle East.
WTI crude is down 2.68% to $47.22 per barrel, while Brent crude is falling 2.08% to $52.20 per barrel this afternoon, according to a CNBC.com index.
A Reuters survey showed OPEC pumped an additional 140,000 barrels a day in July, compared with June.
In the U.S., five oil rigs were added this week, after 21 rigs were put into service last week, according to Baker Hughes.
So far this month, U.S. crude prices have fallen 20%, while Brent crude decreased 18%, Reuters added.
Separately, TheStreet Ratings team rates WHITING PETROLEUM CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WHITING PETROLEUM CORP (WLL) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite the weak revenue results, WLL has outperformed against the industry average of 38.4%. Since the same quarter one year prior, revenues fell by 21.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for WHITING PETROLEUM CORP is rather high; currently it is at 69.42%. Regardless of WLL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WLL's net profit margin of -22.81% significantly underperformed when compared to the industry average.
- Net operating cash flow has decreased to $326.00 million or 42.58% when compared to the same quarter last year. Despite a decrease in cash flow of 42.58%, WHITING PETROLEUM CORP is in line with the industry average cash flow growth rate of -49.29%.
- 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.
- You can view the full analysis from the report here: WLL Ratings Report