Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. If the phrase “Chapter 11” doesn’t scare you away from WLL stock, then perhaps nothing will dissuade you. If you remember, Hertz tried to pull a fast one, attempting to sell $500 million in stock in June, only to be stopped from doing so by the Securities and Exchange Commission, but not before somehow managing to convince investors to buy, Unfortunately, Hertz needs a lot more than $28 million. In Canada’s oil-sands region, Teck Resources Ltd. signaled it may shut down production at the Fort Hills mine just two years after operations commenced. The per-share loss came in at $3.51, which was worse than the $2.33 per share analysts expected.”. However, after seeing what Whiting pulled off, I’ve got to say, “never say never.”. A short time later, a Texas shale driller was reported to be in talks with restructuring advisers, while a Canadian crude producer warned it may shut an oil-sands mine. In Whiting’s case, it could ride a higher oil price to possible future success. Suffice to say, WLL stock has a long way to go to get back to its, bankruptcy loan for as much as $1.5 billion. So, as I said in the beginning, Whiting emerged from bankruptcy at the beginning of September with $3 billion less debt and a new $750 million revolving credit facility that matures in April 2024. Yet, it shook the American oil market to the core as investors wondered if more companies might follow. Headquartered in Denver, Colorado we lead the industry with our competitive assets, commitment to safety, dedication to technology and record-setting results. After Whiting, I won’t say it can’t happen, but even if it does, Hertz’s business model is dated despite its efforts to play the ride-sharing game. That’s likely not happening until the summer of 2021 or later. He lives in Halifax, Nova Scotia. Copyright © 2020 InvestorPlace Media, LLC. A delisting would effectively be viewed as a demotion by the trading community. 2020 InvestorPlace Media, LLC. While it’s possible the same thing could play out with Hertz, the result doesn’t necessarily mean you’ll be rewarded for your patience. In the space of less than an hour on Wednesday, a former high-flying shale operator and an offshore transport company filed for bankruptcy. It’s in a much better financial position today than it was when it entered Chapter 11 in April. Investors wondering what could happen to Hertz (NYSE:HTZ) and Hertz stock post-bankruptcy might want to take a closer look at Whiting’s situation. According to Seeking Alpha contributor, Elephant Analytics, it values the company’s shares between $24 and $29 a share, which translates to 39 cents a share at the top end. 2020 InvestorPlace Media, LLC. The latest casualty is Whiting Petroleum Corp., a champion of what was once the premier U.S. shale field. And undoubtedly, they were all factors in the price deterioration of Whiting Petroleum (NYSE:WLL) stock. Article printed from InvestorPlace Media, https://investorplace.com/2020/06/wll-stock-2/. All rights reserved. The latest casualty is Whiting Petroleum Corp., a champion of what was once the premier U.S. shale field. It takes some reading between the lines to detect the bad news and blame deflection contained therein. If you already know the details of Whiting’s reorganization, my apologies. Article printed from InvestorPlace Media, https://investorplace.com/2020/09/hertz-stock-could-survive-bankruptcy-does-anybody-care/. According to the Chapter 11 restructuring terms, Whiting’s existing shareholders at that time would receive only 3% of the newly reorganized company’s equity. Some commentators might say that they saw it coming from a mile away. All rights reserved. Don’t Get Your Hopes Up for Whiting Petroleum Shares, 8 Battery Stocks That Will Seriously Power Your Portfolio, filed for Chapter 11 bankruptcy proceedings, our balance sheet and looming note maturities, would receive only 3% of the newly reorganized company’s equity, is not in compliance with the NYSE’s continued listing standard, This Investing Advantage Could Be the Secret to Massive Wealth, Trump vs. Biden: Stocks to Buy No Matter Who Wins the White House, 7 Monster Growth Stocks With Double-Digit Upside, 5 Value Stocks To Buy Now Beating The S&P 500 In 2020, 3 Utility Stocks With Tried-and-True Gains, 7 Cryptocurrencies to Stand the Test of Time, As More Competitors Enter the EV Space, Nio Stock Is Just Heating Up. Yet, there are plenty of oil companies that aren’t filing for Chapter 11 (yet). On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The company’s Bakken primacy won it little praise because the region was already falling out of favor as drillers shifted to lower-cost prospects in the Permian Basin. But then, as we should all know by now, the markets aren’t always rational. It’s true that the per-barrel WTI oil price has recovered from April’s jarring lows. So, the company’s bondholders got 97% of the new stock while the old shareholders got 3%. The company, which had a market capitalization of $11 billion in 2014, was valued at about $62 million as of Tuesday. It’s heartbreaking to watch a once revered oil major like Whiting Petroleum fall so far. — With assistance by Steven Church, Christine Buurma, Allison McNeely, David Wethe, and Jeremy Hill. It’s a long-term dud, dead or alive. As part of the bankruptcy arrangement, old Whiting shareholders got one new share for 75 of the old ones. It can’t rely on the sale of its used vehicles to pay down debt over the long term. It says it has $1.4 billion in cash on hand, and needs to see a recovery in key markets, as well as an extension from creditors in Europe and the United Kingdom beyond Sept. 30,” Sanders wrote on Aug. 21. Back in the shale patch, Houston-based Callon Petroleum Co. was said to have hired advisers to discuss restructuring more than $3 billion in debt, Reuters reported without identifying its sources or the advisory firms. The biggest issue for Whiting investors at this point is figuring out what the shares are worth. Recently, I was asked by my editors to discuss Whiting Petroleum (NYSE:WLL), the oil and gas company that went bankrupt in April and emerged from Chapter 11 proceedings on Sep. 1. So. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. But when the shale revolution spurred drillers to go back ashore a decade ago, offshore business dwindled. It’s like being sent to the doghouse. For Hertz to get out of this mess, travel has to return to normal. But the debt load remained stubbornly high, prompting Holly last year to fire one-third of his workforce and scale back production targets after posting an unexpected quarterly loss. It can’t rely on, This Investing Advantage Could Be the Secret to Massive Wealth, Trump vs. Biden: Stocks to Buy No Matter Who Wins the White House, 7 Monster Growth Stocks With Double-Digit Upside, 5 Value Stocks To Buy Now Beating The S&P 500 In 2020, 3 Utility Stocks With Tried-and-True Gains, 7 Cryptocurrencies to Stand the Test of Time, As More Competitors Enter the EV Space, Nio Stock Is Just Heating Up. The company is planning a Chapter 11 filing. All rights reserved. “For the second quarter, Hertz lost $587 million on $832 million in revenue. Nasdaq Will Ashworth has written about investments full-time since 2008. Hertz Stock Could Survive Bankruptcy. “Hertz says that it sold off 100,000 cars in June and July and needs to dump another 182,000 vehicles. There are other energy-sector plays out there, and some of them will get to keep their well-earned place on a major stock exchange. contributor, Elephant Analytics, it values the company’s shares between $24 and $29 a share, which translates to 39 cents a share at the top end. As my colleague said, there are plenty of better investments out there. . The unprecedented collapse in global oil markets is wreaking havoc in all corners of the North American crude industry, pushing shale drillers, deepwater-equipment haulers and oil-sand miners to desperate measures. It’s a legitimate question as an ongoing energy-sector shakeout could only leave a handful of survivors, with Whiting Petroleum an unlikely candidate for the short list. Excess oil production, demand crushed by the spread of the novel coronavirus and a lack of storage all contributed to a horrendous oil-price rout in April. That doesn’t mean you should care. Bankruptcies, Europe Steps Closer to Lockdown-Level Curbs in Italy and Spain, Apple Developing Smaller AirPods Pro, Revamped Entry-Level Model. There are exceptions to every rule, but filing for bankruptcy protection is often the beginning of a company’s end. The company filed for bankruptcy on Wednesday. Investors wondering what could happen to, So, as I said in the beginning, Whiting emerged from bankruptcy at the beginning of September with. Here’s why. According to. Before it's here, it's on the Bloomberg Terminal. NEW YORK -- Shares of Whiting Petroleum () - Get Report are lower by 6.45% to $8.92 on Tuesday afternoon, as the decline in the price of oil drives some energy and related stocks into the red today. The biggest issue for Whiting investors at this point is figuring out what the shares are worth. , the odds of HTZ stock living to trade beyond bankruptcy proceedings is remote. Beyond playing the blame game, Whiting’s CEO indirectly acknowledged the company’s unfavorable balance sheet. If you are betting on Hertz stock to survive and thrive, you’re done so at the expense of another opportunity. Whiting Petroleum Corporation is an independent exploration and production company with an oil focused asset base. When former Anadarko Petroleum Corp. executive Brad Holly took the reins as Whiting’s chief in late 2017, oil prices were rising and at one point breached $75 a barrel.
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