Bakken shale producer Whiting makes move to increase stock trends

By Luke Geiver | September 12, 2017

Whiting Petroleum Corp.—a major Bakken and Niobrara oil and gas producer—is taking steps to increase the trading price of its common stock. Through a reverse stock split, Whiting announced last week its intent to reduce the number of common stocks currently shared which the company said, “may improve marketability and facilitate its trading.”

Through a reverse stock split, a company will divide the number of its common shares by a number determined by its Board of Directors. Such financial maneuvers do not increase the value of a company, but do tend to create movement in the common stock. In certain cases, reverse stock splits are used to maintain a minimum share price—a metric used to determine if a stock should or can be listed on an exchange.

Whiting has yet to determine the ratio for which it will reduce its common stock totals. The company has said it will consider a ratio of 1-for-2 and 1-for-6, in which one common stock would either be what the equivalent of two or six stocks had been.

In Q4 of this year, a special meeting of stockholders will be held to authorize the share reduction.

Whiting Petroleum has been active this year already. Earlier this year, the company sold $500 million of Williston Basin acreage. The company has also told investors that its new completion designs and drilling strategies have not only increased production on a per-well basis, but will also translate across the E&P’s entire Bakken position regardless of the geology.