Whiting Petroleum nearly doubles its capital spending budget
Whiting Petroleum Corp., North Dakota’s largest oil producer, nearly doubled its 2017 budget for capital spending as crude prices stabilize following a two-year rout.
However, shares of the company were down 3.5 percent after the bell as the oil producer’s revenue fell below analysts’ expectations due to a steep drop in production.
Oil companies are betting big on a continued rise in crude prices by buying up acreage and raising capital spending.
Whiting boosted its 2017 spending to $1.1 billion from $554 million in 2016.
The company’s production fell 23.4 percent to 118,890 barrels of oil equivalent per day in the fourth quarter ended Dec. 31.
Whiting’s net loss available to common shareholders widened to $173.3 million, or 59 cents per share, in the quarter from $98.7 million, or 48 cents per share, a year earlier.
Excluding items, the company posted a loss of 28 cents per share, smaller than the analysts’ average estimate of 32 cents.
Denver-based Whiting Petroleum’s operating revenue fell 18 percent to about $342.7 million. Analysts had estimated revenue of $355.2 million, according to Thomson Reuters I/B/E/S.