- Whiting Petroleum Corporation has emerged from bankruptcy and its shares have soared by 21% on Thursday.
- Profit-taking on NYSE: WLL is likely, but may serve as a buying opportunity.
- The company's longer financial horizon and stable oil prices may allow for further recovery.
Coronavirus's first oil-producing victim is out of Intensive Care – Whiting Petroleum Corporation has exited bankruptcy five months after filing for Chapter 11 protection on April 1. NYSE: WLL stocks are trading once again and rising quickly.
WTI Crude Oil has stabilized in recent months above $40 after wild falls in the spring when futures temporarily fell to the negative ground amid a plunge in demand due to COVID-19 and a Saudi-Russian price war. The global recovery has been on a gradual recovery path, allowing Whiting's management to calmly reorganize the company's finances.
The Denver-based firm minimized its funded debt by around $3 billion. It also secured a revolving million credit facility – backed by reserves – that will be in place through April 2024. The longer financial horizon allows for more breathing space.
The board also nominated new management, with Lynn Peterson as the new CEO and James Henderson as CFO. Managing Whiting's accounting remains critical also after the restructuring.
Investors will likely continue cheering the substantial changes and the WLL's ability to emerge from the abyss. Profit-taking could prove a buying opportunity for bargain-seekers.
WLL stock price
NYSE: WLL shares leaped by over 21% to close at $23.67 on Thursday, defying the downfall in broader stock markets.
Whiting now has a market capitalization of over $2 billion, yet its equity is far off the 2018 highs above $50 or the 2014 stratospheric peak of over $350.
Shares are changing hands at just below $23 in Friday's pre-market session, yet there are reasons to believe it may emerge from the lows.
US Non-Farm Payrolls and the Federal Reserve continue impacting the broader equity markets.
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