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"Motivated" Seller Whiting Petroleum Jumps Despite 1043x Forward P/E
Whiting Petroleum - the largest oil producer in the Bakken shale formation - has caught some investors' (and TV talking heads) eyes this morning as it has jumped over 11% on speculation that its decision to put itself up for sale - as a "motivated" seller - somehow means the collapse in the share price will be reversed by some greater fool who sees "synergies." We wonder though... who exactly is going to buy this company that trades at a 1043x Forward P/E?
As Bloomberg noted Friday,
Whiting Petroleum Corp., the largest oil producer in the Bakken shale formation, has hired a bank to pursue a possible sale, people familiar with the matter said.
The Denver-based company, which has a market value of $5.7 billion, has reached out to potential buyers including Norway’s Statoil ASA, one of the people said, asking not to be identified as the information is private.
Whiting, which acquired Kodiak Oil & Gas Corp. for $3.8 billion last year, is searching for a buyer as the price of crude oil has fallen by half since July to about $50 a barrel. The company has been exploring the sale of its oil and gas processing assets in North Dakota, people with knowledge of the matter said last month.
And today the stock jumps... because who doesn't wnat to buy a company whose valuation is a mere 1043x Fwd P/E...
One quick question - what happens if no one wants to buy them? Two words... "massive repricing" of the entire sector. And do not forget, all of these companies have massivley exaggerated oil reserve valuation levels on their balance sheets.
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I thought Continental Resources was #1 producer in Bakken ??
Why all the fucking BTFD-tards here will buy it!
Come on man.........let me in there!
MOM!!!
The Fed could do it. Just hand them some freshly printed Benjamin's for their company. Done deal!!
What a deal!! Quick I gotta call Grandma maybe I can get her to bet her life's savings on this one what a opportunity!!
There, fixed it
Actually, I now think it's Hamm's Xwifey.
CLR was until Whiting acquired Kodiak and jumped to #1 in North Dakota.
Too easy. Cramer
Yeah, yeah, PEs. But what do they get per click?
That looks just like BitCoin at 1200 a year and a half ago.... before it collapsed.
Only1043x Forward P/E?
That is a fraction of our Feds equivalent.
....one of the big winners of the energy Renaissance !
Another one bites the dust - Dune energy just filed for bankruptcy after a merger deal fell through.
We have a buyer for this company....
Shrek Donkey Pick MeMe next! Me next!
-SOGC
http://pevc.dowjones.com/Article?an=DJFLBO0120150306eb36q2jar&cid=321350...
log scale bitchez
as crazy as it sounds, earnings isn't a popular metric for independent E&Ps.
Correct you are.
But with total debt to EBITDA of ~4.4, it still looks like a fucking pig.
We PEd on some folks..
GM
Jim Willie has on more than one occasion mentioned alt-energy with Toyota giving away patents on fuel cell tech.
Could it be, in reality that oil is getting scarcer & there's going to be a shift for those that can afford it?
Oil will get scarcer after the biggest glut in history plays out.... Scarcer or bust.
What a bargain!! Such an underrated P/E.
when I bought my home, the agent said the seller was "motivated" and thought I could get a lower price.
that's much lower than infinity ... buy!
1043X forward P/E? Did I miss the Rapture or something?
Its earnings are positive? Not for long, I bet.
Haleluja Enron! Golden guy, this late Ken Lay! I do not want to be a bad ass, but 1043x? I cross my fingers, maybe it helps them to find quickly that stupid guy. Every investment is a risk, but these are cooked books.
"Nice bag!"
Private equity will jump in betting on a rise in oil in five years, if it doesn't...fuck it, other people's money.
Who the fuck cares about earnings multiples when valuing an entire business? Seriously?
Maybe the fed should buy it, they broke it.
"Priceless"
"Motivated" selling in gold stocks too, I see.