UPDATE: Stifel Nicolaus Initiates Whiting USA Trust II with Hold; Likely Declining Income Stream

Stifel Nicolaus initiates its coverage on Whiting USA Trust II

with a Hold rating on shares as it believes the company's income stream is likely to diminish should commodity pricing not rise. Stifel Nicolaus comments, "The trust likely provides a declining quarterly income stream from oil and natural gas sales absent rising commodity prices. The payments resemble an amortizing debt instrument in that upon final payment the value of the security will be zero. We believe the current valuation reflects the discounted value of the future cash flows under our long-term price assumptions for oil and natural gas and thus are initiating coverage with a Hold rating." WHZ closed at $23.15 on Tuesday.