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6 Ways to Play the Bigger and Badder Bakken

New numbers show formation has double energy previously thought

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Whiting Petroleum

whiting 6 Ways to Play the Bigger and Badder BakkenWith roughly 70% of its production coming from the Bakken, Whiting Petroleum (NYSE:WLL) is the second largest player in the region. At the end of December 2012, Whiting had proven reserves of around 378.8 million barrels of oil equivalent (BoE) and had interests in 10,218 wells over 1,277,400 acres.

Like the other players on this, WLL also managed to increase production and saw a 10% jump in the amount of energy it pulls from the ground.

However, unlike Kodiak and Continental, Whiting could be the biggest bargain. The producer has had some issues with regards to its hedging strategy throughout the latest quarter. A strong hedging strategy is important for any oil or gas producer to limit its exposure to oil and gas prices.

Those issues are keeping WLL shares around 17% below their 52-week highs … even though Whiting’s cost controls have helped it boost operating cash flows by over 40% in the last two quarters. Meanwhile, rival Kodiak has experienced lumpy and even negative net cash flows over the same time period.

Median price targets for WLL shares are nearly $15 — around 25% — higher than where it is trading for today.


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/6-ways-to-play-the-bigger-and-badder-bakken/.

©2014 InvestorPlace Media, LLC

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