Whiting Petroleum Corporation (WLL) today closed the previously announced sale to BreitBurn Energy Partners L.P. (BBEP) of its Enhanced Oil Recovery (EOR) projects in the Postle and NE Hardesty Fields, Texas County, Oklahoma. The sale includes the related Dry Trail plant gathering and processing facilities, oil delivery pipeline, 60% interest in the 120-mile Transpetco CO2 pipeline, CO2 supply contracts and certain crude oil swaps. The all cash purchase price was $859.8 million, subject to closing and post-closing adjustments. Whiting expects the net proceeds from the sale to be approximately $850 million after estimated expenses and $836 million after adjustment primarily for two months of net revenues received by Whiting between the effective date and the closing date. Whiting will operate the properties under a transition services agreement until October 31, 2013.
Whiting has determined the appropriate accounting treatment is to include the Postle assets in Whiting’s results of operations through the closing date of July 15, 2013.
The company also issued a 2nd quarter operations update that is above what I had in my forecast model. - Dan
Whiting closes sale of TX assets to BBEP
Whiting closes sale of TX assets to BBEP
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Whiting closes sale of TX assets to BBEP
Production in the second quarter exceeded the high end of guidance in Whiting’s April 24, 2013 news release primarily due to increasing production at its Redtail, Hidden Bench, Missouri Breaks, Sanish/Parshall and North Ward Estes projects.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Whiting closes sale of TX assets to BBEP
Whiting Petroleum Corp. (WLL): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.
Based on my forecast, WLL should report EPS for Q2 significantly higher than the current First Call EPS estimate. I also think the company will increase their 2013 production guidance when they release earnings on July 24. Increasing wellhead prices for North Dakota oil should also be a major plus for this one.
WLL is trading at less than 4X CFPS, which is a ridiculously low multiple for a mid-cap of this quality. Read our profile which you can find under the Sweet 16 Tab.
Based on my forecast, WLL should report EPS for Q2 significantly higher than the current First Call EPS estimate. I also think the company will increase their 2013 production guidance when they release earnings on July 24. Increasing wellhead prices for North Dakota oil should also be a major plus for this one.
WLL is trading at less than 4X CFPS, which is a ridiculously low multiple for a mid-cap of this quality. Read our profile which you can find under the Sweet 16 Tab.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group