Oppenheimer Says Whiting Petroleum 'Doing More With Less'

In a report published Friday, Oppenheimer analysts maintained an Outperform rating on

, while raising the price target from $40 to $47, after the company reported its 1Q15 results. Whiting Petroleum reported an adjusted loss of $0.23 per share, better than the consensus of $0.32. "The beat was driven largely by lower unit costs, most notably DD&A." In the report Oppenheimer noted, "With service cost reductions, operating efficiencies, and new completion designs, WLL has reduced well costs in the Williston Basin to $6.5M, from $8.5M last year, and in Redtail to $4.5M, from $6.0M. It also reduced FY15 guidance for LOE by $0.20/boe and DD&A by $1.50/boe." Whiting Petroleum marginally raised its 2015 guidance, adjusting for the recent sale of legacy assets (2.2 mboed). The capex guidance was maintained at around $2B, largely frontend loaded. The company expects mid-single digit production growth next year. "Whiting disclosed results from slickwater completions in Pronghorn, with 90-day rates up 51% from offset wells. Results on acquired Kodiak acreage (Dunn, Polar, and Koala) were also impressive (2,798 boe/d avg. IP). In Redtail, Codell/Fort Hays wells are tracking a 400 mboe EUR type curve, competitive with core Niobrara A and B wells," the analysts wrote. "Asset sales, including $108M recently announced, will help fund the '15 outspend and could de-lever the balance sheet, and WLL plans to run CF neutral in '16," the analysts added.