Filloon on Whiting -- 1Q12

Link here.

In summary, Whiting has seen some decent returns from the Bakken and its EOR projects. It also has a good start in its Wolfcamp and Niobrara areas. Whiting's earnings miss can be attributed to several things. The first is a company wide oil differential of $12.43 per barrel from NYMEX. In the second quarter it expects this to be in a range between $12.50 to $13.50 per barrel and $12 to $13 for the full year. DD&A charges were higher than expected, but this has been seen by most if not all the operators in the Bakken.

Whiting continues to be a value and sells for a discount when compared to other companies with similar assets. It has done a very good job of adding acreage in plays with lower well costs, which should help to offset higher costs in the Bakken. Look for Whiting to maintain higher margins, while increasing production.

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