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There Goes The Shale M&A Bid - Whiting Petroleum Finds 'No Buyer', Forced To Issue Massive Secondary
TINA - There Is No Alternative... except when it comes to energy stocks with 1043x P/Es. Having been exuberantly chased brioefly after announcing it was looking for a buyer - fueling further excitement about a low-oil-price-driven Shale firm M&A boom - Whiting Petroleum appears to have found no buyer as it prepares for a massive 35 million share secondary dilution (and almost $2bn of new debt).
...because who doesn't wnat to buy a company whose valuation is a mere 1043x Fwd P/E...
Whiting Petroleum Announces Offering of 35,000,000 Shares of Common Stock
Whiting Petroleum Corporation (NYSE: WLL) announced today that it has commenced a registered public offering of 35,000,000 shares of its common stock. Whiting expects to grant the underwriter a 30-day option to purchase up to an additional 5,250,000 shares of its common stock.
Whiting also announced by separate press release that it has commenced private unregistered offerings to eligible purchasers of $1.0 billion aggregate principal amount of convertible senior notes due 2020 (or up to $1.15 billion aggregate principal amount if the initial purchasers in that offering exercise in full their option to purchase additional convertible senior notes) and $750 million aggregate principal amount of senior notes due 2023. Nothing contained herein shall constitute an offer to sell or the solicitation of an offer to buy the convertible senior notes or the senior notes.
Whiting expects to use the net proceeds from the offerings to repay all or a portion of the amount outstanding under its credit agreement and any remainder for general corporate purposes.
J.P. Morgan Securities LLC is acting as sole book-running manager for the common stock offering. The offering will be made only by means of a prospectus, forming a part of the Company's effective shelf registration statement, related prospectus supplement and other related documents.
As we asked recently... what happens if no one wants to buy them?
Two words... "massive repricing" of the entire sector.
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We wonder - have they tried Kickstarter?
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Mark my words:
After every last sucker and algo buys this thing and it goes bankrupt it WILL end up on the FEDS balance sheet. It will be then every person reading this and every tax payer will own it regardless of 1,000 P/E or 50,000 P/E.
Does the FED still own the Red Roof Inn?
Yes. Rebranded "Faulty Towers" (sic).
Sadly, no John Cleese
All those fucking idiot pumpers pushed the price from $35 to $41 on rumor of a buyout. Now it's down to $33
"All those fucking idiot pumpers pushed the price from $35 to $41 on rumor of a buyout."
Idiots? No. Dishonest? Maybe.
Watch for all the subsequent insider sales announcements.
Is this the same guy who wrote a check for $900 Million to his ex-wife and she wanted more?
No, that was harold hamm....continental resources......clr
Hamm is the idiot that got rid of all of CLR oil hedges last November. Now they're fully exposed to low oil prices.
Blackstone or Goldman will end up with it. If you know what I mean?!
The banksters need to repay us.
My dad has heard me talking about how Zion has pushed the dollar up and is now moving assets over to Europe. So it was with that ringing in his ears that he called me and asked, "Have you noticed how many supposedly Hollywood movies with Hollywood stars and directors are made AND financed in and from Europe now?" Yup.
Those bankers who get the convertibles will own the company. This is like bankruptcy without going to court.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://goo.gl/ezLA00
Sign me up for 1,000,000 shares and bill the Fed.
CD, old Pal, old Friend, as soon as you've got that working...
Still beats Greeks peddling bonds;)
Yes, if everyone can access Kickstarter, poverty will be a thing of the past.
/s/ Dr. Paul Krugman
Are they tried buy back their shares? xD
Good point,
Since they don't have any cash, they could offer a certificate good for X number of bbls payable on demand any time between now and 2017.
Bonuses all around.
but but they are bankrupt too. ALL usa firm are bankrupt.
Would you please pass the Petroleum Jelly....
We lubed up some folks?
So, you like your oil refined?
Stricken with a cold that never quite goes away, the nation's housing market is stumbling once again. In the fourth quarter of 2014, home values dropped and builder confidence started to erode.
http://www.huffingtonpost.com/jorge-newbery/us-housing-market-gets-si_b_...
But ... but ... but.....
In the new economy, once your company goes bankrupt- the algos ignore it and your shares still trade around 50 bucks.
FYI-The Bakken Boom is over. At less than $70 crude only the middle pocket (Williams, Mountrail,McKenzie,Dunn) counties can make money and then only down to $44 oil. Nearly half the lease acres in this pocket have already been drilled. All currently operating drilling rigs are in the pocket (around 100) with an average of 130 total bores a month. At this rate all profitable lease acres will have been drilled in the next 36 months. At a 75% first year depletion rate you're looking at an overall play depletion in less than 4 years, max. Anything outside the pocket is running a 75% + produced water cut (salt water), ie, for every 10 barrels of fluid 7 1/2 is salt water, and the logistics in terms of transport costs and well maintenance are murderous for these kinds of wells.
Add in the railroads strangle on crude transport and additional peripheral costs like recent fracking rules (1/3 of the Bakken is on tribal land !) and the entire Williston basin is now on an (quickening) downward slope.
And, month over month (Dec to Jan), from 130 barrels per day per well to 125. Better count on those partially completed wells to turn that around.
Herman, no mention of the ND price trigger where they suspend taxes? I thought I knew a lot- but then again I only have an interest in about 280 acres- Whiting has two of our leases.
just like Oasis Petroleum
Earnings my ass ... what is this puppy's Price to Loss ratio.
Well, I'll start the bidding off: $100 for the whole 35,000,000. Do I hear $100.01???? Ok, now, $100.02........ and action/auction begins............
What the Tylers fail to talk about is how margin expansion/contraction greatly multiplies forward PEs. I mean to say if oil goes to $120 barrel, what is the forward PE on this stock? 5 or 15? Just curious. Otherwise this graph, without context of possible future PEs doesn't tell us much about how absurd or not the price of the stock actually is context of the current and possible future oil prices.
Has anyone been paying attention to my posts the last two weeks on WLL? Calling the buyout rumors fake and to buy puts on this???? This mother fucking pigfuck didn't have one single bid, it's going BANKRUPT!!!!!!! Buy jan puts, any strike you can get your hands on because it will be ZERO by then. I can't wait to read their next eps report. Or loss report i should call it.