Cramer: Whiting Petroleum Is Worth More Than Current Value
NEW YORK (TheStreet) -- Whiting Petroleum (WLL) - Get Report is the "first to blink" in the energy industry, TheStreet's Jim Cramer said on Monday, as the company is reportedly putting itself up for sale.
On CNBC's "Mad Dash" segment, Cramer, the co-manager of the Action Alerts PLUS portfolio, said that Whiting should get a good price for its business, because of its "terrific" assets in the Bakken shale rock formation.
Shares were up 12% on the news, but are still down 55% from six months ago.
Whiting Petroleum WLL data by YCharts
With West Texas Intermediate oil at $50 per barrel and with drilling costs declining significantly, Whiting is "worth a great deal more" than its current price, Cramer said.
Norway's Statoil (STO) seems like the most logical buyer, because the company may look to diversify its exposure from the North Sea. Statoil made some ill-time acquisitions, but could gain solid exposure to the Bakken through an acquisition of Whiting, Cramer said.
While Whiting could fix its balance-sheet issues with an equity offering as some of its peers have opted to do, management seems to think a sale of the company is the better way to go, Cramer concluded.
Must Read:7 Best and Worst Chemical Stocks for the Era of Lower Oil Prices
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.
