Winning WLL Stock Forecast: Whiting Petroleum Wins Thanks To Williston Basin and Surging Oil Prices

WLL Stock Forecast

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Whiting Petroleum Corporation (NYSE: WLL) is an oil company focused on acquisition and production of oil and gas in the United States. Over the past 3 months, WLL has increased immensely by over 40% just as the I Know First machine learning algorithm predicted in its WLL Stock Forecast.

Whiting has been flying high along with most oil companies as a global oil shortage and consistent demand brought oil to a four year high at the end of June. The price of oil is expected to remain robust and Whiting Petroleum will continue to benefit. However, a booming oil market is not the only thing contributing to WLL’s success.

After releasing a strong Q1 2018 earnings report on April 30, WLL began to surge. One of the biggest concerns investors have about Whiting Petroleum is their massive debt that hovers near $3 billion. However, over Q1 the company continued its plans to reduce its debt. In Q3 2016, Whiting’s net debt-to-adjusted EBITDA multiple was 6.83x whereas in Q1 2018 they reduced this multiple to 2.89x and decreased debt to $2.83 billion. This lowered debt was the result of divestments and increased productivity. Cash flow in Q1 increased thanks to cash costs that were 26% lower than in Q1 2014.

The company still has more in the works too; it has recently received offers for assets in the Denver-Julesberg (DJ Basin) and a sale is expected to occur by Q3 2018.

The profits from this sale will go towards repaying debts as well as increasing investment in the company’s assets on the Bakken formation, particularly at the Williston Basin in North Dakota. Thanks to the new Dakota Access Pipeline, assets in this region will be a lot more profitable for Whiting Petroleum. The company has already benefited with 410,000 net acres in the region leading to a 14% YoY increase in production to 11.43 million barrels of oil equivalent, or 81% of output.

On April 12, the I Know First algorithm issued a bullish forecast on WLL with a signal of 46.20 and a predictability indicator of .44 over a 3 month period as part of the fundamental package. For the aforementioned reasons, the stock increased by 40.52% over this time period in good agreement with our previously predicted forecast .

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Current I Know First subscribers received this bullish WLL forecast on April 12, 2018.

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