In the month of March, 2010, Whiting's eighteen (18) wells in the Sanish generated $27 million in cash flow (at $70/bbl) at the wellhead; that works out to $323 million in cash flow for the year going forward if things stay steady. (Does anyone really think Whiting's production in the Bakken will stay steady for the next year?)
According to Yahoo!Financial, Whiting's operating cash was $600 million for the trailing 12 months. Back of the envelope calculations suggest half of all of Whiting's cash flow is coming from a few wells in the Williston Basin.
And some folks think the Bakken is over-hyped.
By the way, Whiting's forward P/E is about 12, and share price is dropping significantly today. Just saying.
Maybe the boom is over.
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