Whiting Petroleum Corp

Whiting Petroleum Corp (WLL) is an E&P Oil and Gas operations company, with primary activates in the continental US. This week Cramer named 3 stocks of companies engaged in exploration in the North Dakota area, which he called an “amazing story”. In 2010 North Dakota produced 113 million barrels of oil, this number is more than double 3 years earlier.

Hot on the heels of my success in Oasis (OAS), I have been looking for another small domestic oil company. I checked out all three Cramer recommendations; EOG Resources (EOG), Whiting Petroleum (WLL), and Continental Resources (CLR). In the end I decided to let the lowest P/E be the deciding factor. EOG had a P/E of 184.09 with and EPS of 0.64, CLR had a P/E of 72.30 on 0.99 EPS, and WLL had P/E of 30 on 2.33 EPS. Picking a growth stock based on lowest P/E is probably not a sound formula for huge success, but the best EPS and lowest P/E of the three jumped out at me and appealed to my “value investor” ideals.

If the trend of higher oil prices, and more demand for local oil continue, then all three of these stocks will likely be winners.