Intrinsic value of Whiting Petroleum - WLL

Previous Close

$30.84

  Intrinsic Value

$14.01

stock screener

  Rating & Target

str. sell

-55%

Previous close

$30.84

 
Intrinsic value

$14.01

 
Up/down potential

-55%

 
Rating

str. sell

We calculate the intrinsic value of WLL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -38.58
  2.50
  2.75
  2.97
  3.18
  3.36
  3.52
  3.67
  3.80
  3.92
  4.03
  4.13
  4.22
  4.29
  4.36
  4.43
  4.49
  4.54
  4.58
  4.62
  4.66
  4.70
  4.73
  4.75
  4.78
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
Revenue, $m
  1,285
  1,317
  1,353
  1,394
  1,438
  1,486
  1,539
  1,595
  1,656
  1,721
  1,790
  1,864
  1,943
  2,026
  2,114
  2,208
  2,307
  2,412
  2,522
  2,639
  2,762
  2,892
  3,028
  3,172
  3,324
  3,483
  3,651
  3,828
  4,014
  4,209
  4,415
Variable operating expenses, $m
 
  3,103
  3,188
  3,283
  3,388
  3,501
  3,625
  3,758
  3,901
  4,054
  4,217
  4,392
  4,577
  4,773
  4,981
  5,202
  5,435
  5,682
  5,942
  6,217
  6,507
  6,813
  7,135
  7,474
  7,831
  8,207
  8,603
  9,019
  9,457
  9,917
  10,401
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  2,155
  3,103
  3,188
  3,283
  3,388
  3,501
  3,625
  3,758
  3,901
  4,054
  4,217
  4,392
  4,577
  4,773
  4,981
  5,202
  5,435
  5,682
  5,942
  6,217
  6,507
  6,813
  7,135
  7,474
  7,831
  8,207
  8,603
  9,019
  9,457
  9,917
  10,401
Operating income, $m
  -870
  -1,786
  -1,835
  -1,890
  -1,950
  -2,015
  -2,086
  -2,163
  -2,245
  -2,333
  -2,427
  -2,528
  -2,634
  -2,747
  -2,867
  -2,994
  -3,128
  -3,270
  -3,420
  -3,578
  -3,745
  -3,921
  -4,106
  -4,302
  -4,507
  -4,723
  -4,951
  -5,191
  -5,443
  -5,708
  -5,986
EBITDA, $m
  302
  -587
  -603
  -621
  -640
  -662
  -685
  -710
  -737
  -766
  -797
  -830
  -865
  -902
  -942
  -983
  -1,028
  -1,074
  -1,123
  -1,175
  -1,230
  -1,288
  -1,349
  -1,413
  -1,480
  -1,552
  -1,626
  -1,705
  -1,788
  -1,875
  -1,966
Interest expense (income), $m
  240
  194
  201
  208
  216
  225
  235
  245
  257
  269
  282
  296
  311
  327
  344
  362
  381
  401
  422
  444
  468
  493
  519
  547
  576
  607
  639
  673
  709
  746
  786
Earnings before tax, $m
  -1,427
  -1,980
  -2,036
  -2,098
  -2,166
  -2,240
  -2,321
  -2,408
  -2,502
  -2,602
  -2,710
  -2,824
  -2,945
  -3,074
  -3,211
  -3,356
  -3,509
  -3,671
  -3,842
  -4,023
  -4,213
  -4,414
  -4,626
  -4,848
  -5,083
  -5,330
  -5,590
  -5,864
  -6,151
  -6,454
  -6,772
Tax expense, $m
  -88
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -1,339
  -1,980
  -2,036
  -2,098
  -2,166
  -2,240
  -2,321
  -2,408
  -2,502
  -2,602
  -2,710
  -2,824
  -2,945
  -3,074
  -3,211
  -3,356
  -3,509
  -3,671
  -3,842
  -4,023
  -4,213
  -4,414
  -4,626
  -4,848
  -5,083
  -5,330
  -5,590
  -5,864
  -6,151
  -6,454
  -6,772

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  56
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,876
  10,054
  10,331
  10,638
  10,976
  11,345
  11,745
  12,176
  12,639
  13,135
  13,665
  14,229
  14,829
  15,465
  16,140
  16,855
  17,611
  18,410
  19,254
  20,144
  21,083
  22,073
  23,117
  24,216
  25,373
  26,591
  27,873
  29,221
  30,640
  32,132
  33,701
Adjusted assets (=assets-cash), $m
  9,820
  10,054
  10,331
  10,638
  10,976
  11,345
  11,745
  12,176
  12,639
  13,135
  13,665
  14,229
  14,829
  15,465
  16,140
  16,855
  17,611
  18,410
  19,254
  20,144
  21,083
  22,073
  23,117
  24,216
  25,373
  26,591
  27,873
  29,221
  30,640
  32,132
  33,701
Revenue / Adjusted assets
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
  0.131
Average production assets, $m
  9,947
  10,195
  10,475
  10,787
  11,129
  11,503
  11,909
  12,346
  12,815
  13,318
  13,855
  14,427
  15,035
  15,681
  16,365
  17,090
  17,857
  18,667
  19,522
  20,425
  21,377
  22,381
  23,439
  24,553
  25,727
  26,962
  28,261
  29,629
  31,067
  32,580
  34,170
Working capital, $m
  145
  91
  93
  96
  99
  103
  106
  110
  114
  119
  124
  129
  134
  140
  146
  152
  159
  166
  174
  182
  191
  200
  209
  219
  229
  240
  252
  264
  277
  290
  305
Total debt, $m
  3,535
  3,646
  3,779
  3,928
  4,091
  4,268
  4,461
  4,669
  4,892
  5,131
  5,386
  5,658
  5,947
  6,254
  6,580
  6,924
  7,289
  7,674
  8,080
  8,510
  8,962
  9,439
  9,942
  10,472
  11,030
  11,617
  12,235
  12,885
  13,568
  14,288
  15,044
Total liabilities, $m
  4,735
  4,846
  4,979
  5,128
  5,291
  5,468
  5,661
  5,869
  6,092
  6,331
  6,586
  6,858
  7,147
  7,454
  7,780
  8,124
  8,489
  8,874
  9,280
  9,710
  10,162
  10,639
  11,142
  11,672
  12,230
  12,817
  13,435
  14,085
  14,768
  15,488
  16,244
Total equity, $m
  5,141
  5,208
  5,351
  5,511
  5,686
  5,877
  6,084
  6,307
  6,547
  6,804
  7,078
  7,371
  7,681
  8,011
  8,361
  8,731
  9,123
  9,536
  9,973
  10,435
  10,921
  11,434
  11,974
  12,544
  13,143
  13,774
  14,438
  15,137
  15,871
  16,644
  17,457
Total liabilities and equity, $m
  9,876
  10,054
  10,330
  10,639
  10,977
  11,345
  11,745
  12,176
  12,639
  13,135
  13,664
  14,229
  14,828
  15,465
  16,141
  16,855
  17,612
  18,410
  19,253
  20,145
  21,083
  22,073
  23,116
  24,216
  25,373
  26,591
  27,873
  29,222
  30,639
  32,132
  33,701
Debt-to-equity ratio
  0.688
  0.700
  0.710
  0.710
  0.720
  0.730
  0.730
  0.740
  0.750
  0.750
  0.760
  0.770
  0.770
  0.780
  0.790
  0.790
  0.800
  0.800
  0.810
  0.820
  0.820
  0.830
  0.830
  0.830
  0.840
  0.840
  0.850
  0.850
  0.850
  0.860
  0.860
Adjusted equity ratio
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518
  0.518

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -1,339
  -1,980
  -2,036
  -2,098
  -2,166
  -2,240
  -2,321
  -2,408
  -2,502
  -2,602
  -2,710
  -2,824
  -2,945
  -3,074
  -3,211
  -3,356
  -3,509
  -3,671
  -3,842
  -4,023
  -4,213
  -4,414
  -4,626
  -4,848
  -5,083
  -5,330
  -5,590
  -5,864
  -6,151
  -6,454
  -6,772
Depreciation, amort., depletion, $m
  1,172
  1,199
  1,232
  1,269
  1,309
  1,353
  1,401
  1,452
  1,508
  1,567
  1,630
  1,697
  1,769
  1,845
  1,925
  2,011
  2,101
  2,196
  2,297
  2,403
  2,515
  2,633
  2,758
  2,889
  3,027
  3,172
  3,325
  3,486
  3,655
  3,833
  4,020
Funds from operations, $m
  648
  -781
  -803
  -829
  -856
  -887
  -920
  -956
  -994
  -1,035
  -1,080
  -1,126
  -1,176
  -1,229
  -1,286
  -1,345
  -1,408
  -1,475
  -1,545
  -1,620
  -1,698
  -1,781
  -1,868
  -1,960
  -2,056
  -2,158
  -2,265
  -2,378
  -2,496
  -2,621
  -2,752
Change in working capital, $m
  53
  2
  2
  3
  3
  3
  4
  4
  4
  4
  5
  5
  5
  6
  6
  6
  7
  7
  8
  8
  8
  9
  9
  10
  10
  11
  12
  12
  13
  13
  14
Cash from operations, $m
  595
  -783
  -806
  -831
  -860
  -890
  -924
  -960
  -998
  -1,040
  -1,084
  -1,132
  -1,182
  -1,235
  -1,292
  -1,352
  -1,415
  -1,482
  -1,553
  -1,628
  -1,707
  -1,790
  -1,877
  -1,970
  -2,067
  -2,169
  -2,277
  -2,390
  -2,509
  -2,635
  -2,766
Maintenance CAPEX, $m
  0
  -1,170
  -1,199
  -1,232
  -1,269
  -1,309
  -1,353
  -1,401
  -1,452
  -1,508
  -1,567
  -1,630
  -1,697
  -1,769
  -1,845
  -1,925
  -2,011
  -2,101
  -2,196
  -2,297
  -2,403
  -2,515
  -2,633
  -2,758
  -2,889
  -3,027
  -3,172
  -3,325
  -3,486
  -3,655
  -3,833
New CAPEX, $m
  -553
  -248
  -280
  -312
  -343
  -374
  -405
  -437
  -470
  -503
  -537
  -572
  -608
  -646
  -684
  -725
  -767
  -810
  -856
  -903
  -952
  -1,004
  -1,058
  -1,114
  -1,173
  -1,235
  -1,300
  -1,367
  -1,438
  -1,513
  -1,591
Cash from investing activities, $m
  -223
  -1,418
  -1,479
  -1,544
  -1,612
  -1,683
  -1,758
  -1,838
  -1,922
  -2,011
  -2,104
  -2,202
  -2,305
  -2,415
  -2,529
  -2,650
  -2,778
  -2,911
  -3,052
  -3,200
  -3,355
  -3,519
  -3,691
  -3,872
  -4,062
  -4,262
  -4,472
  -4,692
  -4,924
  -5,168
  -5,424
Free cash flow, $m
  372
  -2,202
  -2,286
  -2,375
  -2,471
  -2,574
  -2,682
  -2,798
  -2,921
  -3,051
  -3,188
  -3,334
  -3,487
  -3,650
  -3,821
  -4,002
  -4,192
  -4,393
  -4,605
  -4,827
  -5,062
  -5,309
  -5,568
  -5,841
  -6,129
  -6,431
  -6,748
  -7,082
  -7,433
  -7,802
  -8,190
Issuance/(repayment) of debt, $m
  -292
  111
  133
  148
  163
  178
  193
  208
  223
  239
  255
  272
  289
  307
  325
  344
  364
  385
  407
  429
  453
  477
  503
  530
  558
  587
  618
  650
  684
  719
  756
Issuance/(repurchase) of shares, $m
  0
  2,104
  2,179
  2,257
  2,341
  2,431
  2,528
  2,632
  2,742
  2,859
  2,984
  3,116
  3,256
  3,404
  3,561
  3,726
  3,901
  4,085
  4,279
  4,484
  4,700
  4,927
  5,166
  5,418
  5,682
  5,961
  6,254
  6,562
  6,886
  7,227
  7,585
Cash from financing (excl. dividends), $m  
  -315
  2,215
  2,312
  2,405
  2,504
  2,609
  2,721
  2,840
  2,965
  3,098
  3,239
  3,388
  3,545
  3,711
  3,886
  4,070
  4,265
  4,470
  4,686
  4,913
  5,153
  5,404
  5,669
  5,948
  6,240
  6,548
  6,872
  7,212
  7,570
  7,946
  8,341
Total cash flow (excl. dividends), $m
  57
  13
  27
  30
  33
  36
  39
  42
  45
  48
  51
  54
  58
  61
  65
  69
  73
  77
  81
  86
  90
  95
  100
  106
  111
  117
  123
  130
  137
  144
  151
Retained Cash Flow (-), $m
  -390
  -2,104
  -2,179
  -2,257
  -2,341
  -2,431
  -2,528
  -2,632
  -2,742
  -2,859
  -2,984
  -3,116
  -3,256
  -3,404
  -3,561
  -3,726
  -3,901
  -4,085
  -4,279
  -4,484
  -4,700
  -4,927
  -5,166
  -5,418
  -5,682
  -5,961
  -6,254
  -6,562
  -6,886
  -7,227
  -7,585
Prev. year cash balance distribution, $m
 
  56
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -2,034
  -2,152
  -2,227
  -2,308
  -2,396
  -2,490
  -2,590
  -2,697
  -2,811
  -2,933
  -3,062
  -3,198
  -3,343
  -3,496
  -3,657
  -3,828
  -4,008
  -4,198
  -4,398
  -4,609
  -4,831
  -5,065
  -5,312
  -5,571
  -5,844
  -6,131
  -6,432
  -6,750
  -7,083
  -7,434
Discount rate, %
 
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
 
  -1,892
  -1,850
  -1,755
  -1,654
  -1,549
  -1,439
  -1,325
  -1,209
  -1,092
  -976
  -862
  -752
  -647
  -549
  -458
  -377
  -304
  -242
  -188
  -143
  -107
  -78
  -55
  -38
  -26
  -17
  -11
  -7
  -4
  -2
Current shareholders' claim on cash, %
  100
  62.9
  39.3
  24.6
  15.3
  9.5
  5.9
  3.6
  2.2
  1.4
  0.8
  0.5
  0.3
  0.2
  0.1
  0.1
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0
  0.0

Whiting Petroleum Corporation is an independent oil and gas company. The Company is engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains region of the United States. It is engaged in the exploration and production of crude oil, natural gas liquid (NGLs) and natural gas. Its Northern Rocky Mountains operations included properties in the Williston Basin of North Dakota and Montana targeting the Bakken and Three Forks formations and encompassing approximately 736,000 gross developed and undeveloped acres, as of December 31, 2016. Its Central Rocky Mountains operations included properties at its Redtail field in the Denver Julesburg Basin in Weld County, Colorado targeting the Niobrara and Codell/Fort Hays formations and encompassing approximately 157,200 gross developed and undeveloped acres, as of December 31, 2016. Its other operations primarily relate to non-core assets in Colorado, Mississippi, North Dakota, Texas and Wyoming.

FINANCIAL RATIOS  of  Whiting Petroleum (WLL)

Valuation Ratios
P/E Ratio -2.1
Price to Sales 2.2
Price to Book 0.5
Price to Tangible Book
Price to Cash Flow 4.7
Price to Free Cash Flow 66.5
Growth Rates
Sales Growth Rate -38.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -77.9%
Cap. Spend. - 3 Yr. Gr. Rate -25.4%
Financial Strength
Quick Ratio NaN
Current Ratio 0.8
LT Debt to Equity 68.8%
Total Debt to Equity 68.8%
Interest Coverage -5
Management Effectiveness
Return On Assets -10.5%
Ret/ On Assets - 3 Yr. Avg. -8.4%
Return On Total Capital -14.4%
Ret/ On T. Cap. - 3 Yr. Avg. -11.5%
Return On Equity -27.1%
Return On Equity - 3 Yr. Avg. -22.7%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 65.7%
Gross Margin - 3 Yr. Avg. 71%
EBITDA Margin -1.2%
EBITDA Margin - 3 Yr. Avg. -8.5%
Operating Margin -67.7%
Oper. Margin - 3 Yr. Avg. -66.1%
Pre-Tax Margin -111.1%
Pre-Tax Margin - 3 Yr. Avg. -83.1%
Net Profit Margin -104.2%
Net Profit Margin - 3 Yr. Avg. -69.4%
Effective Tax Rate 6.2%
Eff/ Tax Rate - 3 Yr. Avg. 29%
Payout Ratio 0%

WLL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WLL stock intrinsic value calculation we used $1285 million for the last fiscal year's total revenue generated by Whiting Petroleum. The default revenue input number comes from 2016 income statement of Whiting Petroleum. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our WLL stock valuation model: a) initial revenue growth rate of 2.5% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.5%, whose default value for WLL is calculated based on our internal credit rating of Whiting Petroleum, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Whiting Petroleum.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of WLL stock the variable cost ratio is equal to 235.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for WLL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.5% for Whiting Petroleum.

Corporate tax rate of 27% is the nominal tax rate for Whiting Petroleum. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the WLL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for WLL are equal to 774%.

Life of production assets of 8.5 years is the average useful life of capital assets used in Whiting Petroleum operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for WLL is equal to 6.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5141 million for Whiting Petroleum - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 91.767 million for Whiting Petroleum is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Whiting Petroleum at the current share price and the inputted number of shares is $2.8 billion.

RELATED COMPANIES Price Int.Val. Rating
PDCE PDC Energy 56.23 9.62  str.sell
QEP QEP Resources 11.05 3.54  str.sell
SM SM Energy 26.49 5.47  str.sell
WPX WPX Energy 15.37 2.16  str.sell
NBL Noble Energy 32.94 4.74  str.sell

COMPANY NEWS

▶ How Anadarkos Earnings and Revenue May Fare in 4Q17   [Jan-19-18 12:33PM  Market Realist]
▶ Wall Streets Ratings for Whiting Petroleum   [Jan-18-18 10:33AM  Market Realist]
▶ Whiting Petroleums Stock Range Forecast   [09:03AM  Market Realist]
▶ Upstream Gainers This Week: Whiting Petroleum Leads   [Jan-17-18 02:46PM  Market Realist]
▶ Whiting Petroleum: Wall Street Analysts Ratings   [Jan-11-18 04:20PM  Market Realist]
▶ How Will 4Q17 Drive Whiting Petroleum Stock?   [01:18PM  Market Realist]
▶ Whiting Petroleum: Analyzing Wall Streets Ratings   [Jan-08-18 10:32AM  Market Realist]
▶ What Drove Whiting Petroleum Stock in 2017?   [07:34AM  Market Realist]
▶ Recent Short Interest Trends in Whiting Petroleum Stock   [Dec-29-17 07:33AM  Market Realist]
▶ Wall Streets Recommendations for Whiting Petroleum   [Dec-28-17 12:00PM  Market Realist]
▶ Why Whiting Petroleum Stock Rose Last Week   [08:55AM  Market Realist]
▶ Analysts Recommendations for Whiting Petroleum   [Dec-20-17 12:15PM  Market Realist]
▶ Crude Oil Prices Went on a Wild Ride in 2017   [Dec-16-17 04:34PM  Motley Fool]
▶ Where Whiting Petroleum Stands Next to Peers   [12:26PM  Market Realist]
▶ Gauing Whiting Petroleums Free Cash Flow Potential Next Year   [Dec-11-17 10:31AM  Market Realist]
▶ Whiting Petroleums 2017 Capex and Production   [07:32AM  Market Realist]
▶ Is the Market Being Hard on Whiting Petroleum?   [Dec-08-17 05:20PM  Market Realist]
▶ Whats Happening with Whiting Petroleum Stock?   [02:15PM  Market Realist]
▶ Improving US Crude Oil Drilling Costs and Oil Exports   [Nov-29-17 09:30AM  Market Realist]
▶ Have Oil-Weighted Stocks Missed Oils Rise?   [Nov-28-17 01:01PM  Market Realist]
▶ Analysts Sentiments: What Wall Street Recommends for WLL   [Nov-21-17 02:10PM  Market Realist]
▶ Crude Oil Market: What Do Short Sellers Think?   [Nov-20-17 09:31AM  Market Realist]
▶ US Distillate Inventories Are at 32-Month Low   [09:55AM  Market Realist]
▶ Apache Had Upbeat 3Q17 Earnings and Revenue   [Nov-06-17 10:39AM  Market Realist]
▶ Is US Outpacing OPEC in Crude Oil Export Race?   [Nov-03-17 12:30PM  Zacks]
▶ Current Short Interest in Whiting Stock: What It Tells Us   [Nov-02-17 07:33AM  Market Realist]
▶ How Are Analysts Rating Whiting Petroleum?   [Nov-01-17 05:30PM  Market Realist]
▶ Are Oil-Weighted Stocks Rising More Than Oil?   [Oct-31-17 12:45PM  Market Realist]
Financial statements of WLL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.