Whiting Petroleum Corp. (WLL)

[eFinanceMarkets]

Whiting Petroleum cut to Sell at UBS on downside risks if prices stay weak
Whiting Petroleum (WLL -0.7%) is lower after UBS downgrades shares to Sell from Neutral with an $8 price target, cut from $12, saying that while WLL offers material upside in an oil upcycle, it is outweighed by even greater downside risks if prices stay at or below current levels.
The firm says WLL's recent decision to again outspend cash flow using a capex budget based on $55/bbl, combined with ~$1.5B of debt maturing in 2019-20, makes the company one of the E&Ps most at risk of scaling back if prices remain weak.
Besides oil prices, UBS remains unconvinced by WLL's execution track record, particularly in the Niobrara, as well as the company's ability to stick to an already high capex budget.