Two Bakken leaseholders have been knocked down by market and oil prices recently. However, their fundamentals have not changed. Both Whiting Petroleum Corp (WLL) and Hess Corp (HES) are set to deliver gains of 50%+ within a year. Hess missed on earnings, but some of that may be attributed to the loss of production from Libya. Recent developments there indicate that the rebels are very close to taking over the government. The most likely scenario now is that HES will soon get its properties and infrastructure back. I have no doubt the infrastructure will need repairs after a war. However, getting back a few percent of its production capacity should ultimately help Hess Corp. Plus it is light sweet crude near European refineries (effectively Brent crude).
Thursday, September 1, 2011
Hess and Whiting: Opportunities for Investors -- SeekingAlpha -- Bakken, North Dakota, USA
Link here.
