Whiting Petroleum Corporation Announces First Quarter 2016 Financial and Operating Results
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Q1 2016 Production Averaged 146,770 BOE/d
-
Entered into a Participation Agreement in Williston Basin
-
Enhanced Completions in Williston Basin Increase Productivity Over
100% in Williams County Wells
-
New Drilling Design in Redtail Niobrara Play Reduces Drilling Days
by 50%
Whiting’s (NYSE: WLL) production in the first quarter 2016
totaled 13.4 million barrels of oil equivalent (MMBOE), an average of
146,770 barrels of oil equivalent per day (BOE/d), which was comprised
of 87% crude oil/natural gas liquids (NGLs).
James J. Volker, Whiting’s Chairman, President and CEO, commented,
“During the first quarter, we improved our balance sheet and increased
capital efficiency. We exchanged $477 million of bond debt into
convertible debt, which should further strengthen our financial position.
In the Williston Basin, we established a participation agreement
pursuant to which our partner pays 65% of well costs to earn a 50%
working interest in 44 wellbores in our 2016 program. Because of
this agreement, we plan to complete 44 additional wells in the Williston
Basin in 2016 and are increasing our 2016 production forecast without
changing our capital expenditure guidance.”
Mr. Volker continued, “On the operations side, enhanced completions
continue to generate top-tier results in the Williston Basin. Our
most recent completions in Williams County achieved 60-day rates more
than double comparable offset wells. At our Redtail prospect, our
new well design has reduced drilling times by 50% to 4.44 days with our
best well coming in at 2.79 days.”
Operating and Financial Results
The following table summarizes the operating and financial results for
the first quarter of 2016 and 2015, including non-cash charges recorded
during those periods:
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Three Months Ended
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March 31,
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|
2016
|
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2015
|
Production (MBOE/d) (1)
|
|
|
|
146.77
|
|
|
|
|
166.93
|
|
Discretionary cash flow-MM (2)
|
|
|
$
|
102.3
|
|
|
|
$
|
249.3
|
|
Realized price ($/BOE)
|
|
|
$
|
25.82
|
|
|
|
$
|
37.97
|
|
Total revenues-MM
|
|
|
$
|
292.0
|
|
|
|
$
|
529.2
|
|
Net loss available to common shareholders-MM (3)(4)
|
|
|
$
|
(171.7
|
)
|
|
|
$
|
(106.1
|
)
|
Per basic share
|
|
|
$
|
(0.84
|
)
|
|
|
$
|
(0.63
|
)
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Per diluted share
|
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|
$
|
(0.84
|
)
|
|
|
$
|
(0.63
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted net loss available to common shareholders-MM (5)
|
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|
$
|
(174.2
|
)
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|
|
$
|
(39.1
|
)
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Per basic share
|
|
|
$
|
(0.85
|
)
|
|
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$
|
(0.23
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)
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Per diluted share
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|
$
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(0.85
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)
|
|
|
$
|
(0.23
|
)
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(1)
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First quarter 2015 production includes 12,250 BOE/d that was
divested during the year.
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(2)
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A reconciliation of net cash provided by operating activities to
discretionary cash flow is included later in this news release.
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(3)
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For the three months ended March 31, 2016, net loss available to
common shareholders included $60 million of pre-tax, non-cash
derivative losses or $0.18 per basic and diluted share after tax.
For the three months ended March 31, 2015, net loss available to
common shareholders included $41 million of pre-tax, non-cash
derivative losses or $0.15 per basic and diluted share after tax.
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(4)
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For the three months ended March 31, 2016, net loss available to
common shareholders included a $91 million pre-tax non-cash gain on
extinguishment of debt, or $0.28 per basic and diluted share after
tax, related to the exchange of certain senior notes for new
convertible senior notes and certain senior subordinated notes for
new convertible senior subordinated notes.
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(5)
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A reconciliation of net loss available to common shareholders to
adjusted net loss available to common shareholders is included later
in this news release.
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Bakken Participation Agreement Enhances Capital
Productivity
On April 14, 2016, Whiting entered into a wellbore participation
agreement with a private party who will pay 65% of drilling and
completion costs to earn a 50% working interest in 44 gross Williston
Basin wells. This includes a $30.7 million cash payment that Whiting
received in April for wells already in progress. Under this agreement,
Whiting will continue to run two drilling rigs and will add a completion
crew. With this participation agreement, Whiting plans to add production
and proved reserves with no increase to its capex budget.
Increasing Production Forecast; No Change to
$500 Million Capex Guidance
Whiting is increasing its production forecast to a range of 131,400
BOE/d to 136,900 BOE/d to account for its new Williston Basin
participation agreement. With the majority of completions scheduled for
the second half of the year, the Company expects to realize the full
production benefit in late 2016 and 2017.
Whiting’s 2016 capital expenditure guidance remains unchanged at $500
million. The first quarter capital spending trend was consistent with
the Company’s plan to concentrate activity in the first half of the
year. The net effect of its Williston Basin participation agreement on
2016 capital spending is neutral. The capital expenditures to complete
44 additional wells with a 50% working interest where Whiting pays 35%
of well costs, versus drilling and not completing wells with a 100%
working interest, is approximately equal. Whiting now projects it will
have approximately 30 Bakken/Three Forks drilled uncompleted (DUC) wells
at year-end.
Operations Update
In the first quarter 2016, total net production for the Company averaged
146,770 BOE/d. The Williston Basin Bakken/Three Forks play averaged
124,900 BOE/d and the Redtail Niobrara play in the DJ Basin averaged
11,840 BOE/d. Whiting controls 756,225 gross (445,921 net) acres in the
Williston Basin and 158,443 gross (131,185 net) acres at its Redtail
Niobrara play.
Enhanced completions continue to increase productivity in
Williston Basin. On January 6, 2016, Whiting completed the P
Earl Rennerfeldt 154-99-2-3-27-2H in the Middle Bakken formation and the
P Earl Rennerfeldt 154-99-2-3-10-15H3 in the Three Forks formation. Both
wells are located in Williams County, North Dakota and were completed
with approximately 40 stages, 6.8 million pounds of sand and employed
diverter agents to isolate fracture zones along the wellbore. The P Earl
Rennerfeldt 154-99-2-3-27-2H had an average 60-day production rate of
1,501 BOE/d, 232% better than the average rate for the four offset wells
drilled by Kodiak using older technology. The P Earl Rennerfeldt
154-99-2-3-10-15H3 had an average 60-day production rate of 904 BOE/d,
124% better than the average rate for the six offset wells drilled by
Kodiak using older technology. Whiting has 1,777 potential gross
drilling locations in Williams County.
New wellbore design reduces Redtail Niobrara drilling costs.
At the Redtail field where Whiting targets the Niobrara “A”, “B”, “C”
and Codell/Fort Hays formations, the Company has implemented a new
wellbore configuration. The new well design eliminates the need for an
intermediate casing string by cementing 5½ inch casing from surface to
total depth. This reduced the average first quarter 2016 drilling time
for a 7,000 foot lateral to 4.44 days, a 50% decrease from the first
quarter 2015. Whiting’s record drilling time now stands at 2.79 days.
Other Financial and Operating Results
The following table summarizes the Company’s net production and
commodity price realizations for the quarters ended March 31, 2016 and
2015:
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Three Months Ended
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March 31,
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2016
|
|
|
2015
|
Production
|
|
|
|
|
|
|
|
|
Oil (MMBbl)
|
|
|
|
9.96
|
|
|
|
12.18
|
NGLs (MMBbl)
|
|
|
|
1.64
|
|
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|
1.11
|
Natural gas (Bcf)
|
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|
|
10.51
|
|
|
|
10.37
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Total equivalent (MMBOE)
|
|
|
|
13.36
|
|
|
|
15.02
|
|
|
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|
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|
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Average sales price
|
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Oil (per Bbl):
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Price received
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|
$
|
27.07
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|
$
|
39.25
|
Effect of crude oil hedging (1)
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|
5.54
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|
4.15
|
Realized price
|
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|
$
|
32.61
|
|
|
$
|
43.40
|
Weighted average NYMEX price (per Bbl) (2)
|
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$
|
33.52
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|
$
|
48.58
|
NGLs (per Bbl):
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Realized price
|
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|
$
|
5.48
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|
$
|
13.10
|
Natural gas (per Mcf):
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Realized price
|
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|
$
|
1.05
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|
|
$
|
2.61
|
Weighted average NYMEX price (per Mcf) (2)
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$
|
2.05
|
|
|
$
|
2.98
|
(1)
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Whiting received $55 million and $51 million in pre-tax cash
settlements on its crude oil hedges during the first quarter of 2016
and 2015, respectively. A summary of Whiting’s outstanding hedges is
included later in this news release.
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(2)
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Average NYMEX prices weighted for monthly production volumes.
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First Quarter 2016 Costs and Margins
A summary of production, cash revenues and cash costs on a per BOE basis
is as follows:
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Three Months Ended
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March 31,
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2016
|
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2015
|
|
|
|
(per BOE, except production)
|
Production (MMBOE)
|
|
|
|
13.36
|
|
|
|
15.02
|
|
|
|
|
|
|
|
|
|
Sales price, net of hedging
|
|
|
$
|
25.82
|
|
|
$
|
37.97
|
Lease operating expense
|
|
|
|
8.56
|
|
|
|
11.07
|
Production tax
|
|
|
|
1.94
|
|
|
|
2.95
|
Cash general & administrative
|
|
|
|
2.86
|
|
|
|
2.48
|
Exploration
|
|
|
|
1.54
|
|
|
|
3.63
|
Cash interest expense
|
|
|
|
4.53
|
|
|
|
4.81
|
Cash income tax expense
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
$
|
6.39
|
|
|
$
|
13.02
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First Quarter 2016 Drilling and Expenditures
Summary
The table below summarizes Whiting’s operated and non-operated drilling
activity and capital expenditures for the three months ended March 31,
2016.
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Gross/Net Wells Completed
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Total New
|
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% Success
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CAPEX
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Producing
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Non-Producing
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Drilling
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Rate
|
|
|
(in MM)
|
|
Q1 16
|
|
|
19 / 9.0
|
|
|
0 / 0
|
|
|
19 / 9.0
|
|
|
100% / 100%
|
|
|
$ 267.3 (1)
|
|
(1)
|
|
Includes $34 million for non-operated drilling and completion, $14
million in drilling rig early termination fees, $6 million for
facilities and less than $1 million for land.
|
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Outlook for Second Quarter and Full-Year 2016
The following table provides guidance for the second quarter and
full-year 2016 based on current forecasts, including Whiting’s full-year
2016 capital budget of $500 million:
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Guidance
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|
Second Quarter
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|
|
Full Year
|
|
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|
2016
|
|
|
2016
|
Production (MMBOE)
|
|
|
12.2 - 12.7
|
|
|
48.1 - 50.1
|
Lease operating expense per BOE
|
|
|
$ 8.70 - $ 9.50
|
|
|
$ 9.00 - $ 9.40
|
General and administrative expense per BOE
|
|
|
$ 3.00 - $ 3.40
|
|
|
$ 3.10 - $ 3.50
|
Interest expense per BOE (1)
|
|
|
$ 6.60 - $ 7.10
|
|
|
$ 6.70 - $ 7.20
|
Depreciation, depletion and amortization per BOE
|
|
|
$ 23.50 - $ 24.50
|
|
|
$ 23.75 - $ 24.75
|
Production taxes (% of sales revenue)
|
|
|
9.0% - 9.4%
|
|
|
9.0% - 9.4%
|
Oil price differentials to NYMEX per Bbl (2)
|
|
|
($ 7.00) - ($ 8.00)
|
|
|
($ 7.00) - ($ 8.00)
|
Gas price differential to NYMEX per Mcf
|
|
|
($ 0.70) - ($ 1.20)
|
|
|
($ 0.70) - ($ 1.20)
|
(1)
|
|
Includes non-cash interest expense related to Whiting’s 2018, 2019,
2020, 2021 and 2023 convertible notes. Full-year 2016 cash interest
expense is projected at $5.00-$5.50 per BOE.
|
|
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|
(2)
|
|
Does not include the effects of NGLs.
|
|
|
|
Commodity Derivative Contracts
Whiting is 49% hedged for 2016 as a percentage of March 2016 production.
The following summarizes Whiting’s crude oil hedges as of April 26, 2016:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted Average
|
|
|
As a Percentage of
|
Derivative
|
|
|
Hedge
|
|
|
Contracted Crude
|
|
|
NYMEX Price
|
|
|
March 2016
|
Instrument
|
|
|
Period
|
|
|
(Bbls per Month)
|
|
|
(per Bbl)
|
|
|
Oil Production
|
Three-way collars (1)
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
41.2%
|
|
|
|
Q3
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
41.2%
|
|
|
|
Q4
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
41.2%
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
150,000
|
|
|
$30.00 - $40.00 - $59.02
|
|
|
4.4%
|
|
|
|
Q2
|
|
|
150,000
|
|
|
$30.00 - $40.00 - $59.02
|
|
|
4.4%
|
|
|
|
Q3
|
|
|
150,000
|
|
|
$30.00 - $40.00 - $59.02
|
|
|
4.4%
|
|
|
|
Q4
|
|
|
150,000
|
|
|
$30.00 - $40.00 - $59.02
|
|
|
4.4%
|
Collars
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
7.4%
|
|
|
|
Q3
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
7.4%
|
|
|
|
Q4
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
7.4%
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
7.4%
|
|
|
|
Q2
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
7.4%
|
|
|
|
Q3
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
7.4%
|
|
|
|
Q4
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
7.4%
|
(1)
|
|
A three-way collar is a combination of options: a sold call, a
purchased put and a sold put. The sold call establishes a maximum
price (ceiling) we will receive for the volumes under contract. The
purchased put establishes a minimum price (floor), unless the market
price falls below the sold put (sub-floor), at which point the
minimum price would be NYMEX plus the difference between the
purchased put and the sold put strike price.
|
Selected Operating and Financial Statistics
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
Selected operating statistics:
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
Oil, MBbl
|
|
|
|
9,962
|
|
|
|
|
12,181
|
|
NGLs, MBbl
|
|
|
|
1,642
|
|
|
|
|
1,114
|
|
Natural gas, MMcf
|
|
|
|
10,514
|
|
|
|
|
10,373
|
|
Oil equivalents, MBOE
|
|
|
|
13,356
|
|
|
|
|
15,024
|
|
Average Prices
|
|
|
|
|
|
|
|
|
Oil per Bbl (excludes hedging)
|
|
|
$
|
27.07
|
|
|
|
$
|
39.25
|
|
NGLs per Bbl
|
|
|
$
|
5.48
|
|
|
|
$
|
13.10
|
|
Natural gas per Mcf
|
|
|
$
|
1.05
|
|
|
|
$
|
2.61
|
|
Per BOE data
|
|
|
|
|
|
|
|
|
Sales price (including hedging)
|
|
|
$
|
25.82
|
|
|
|
$
|
37.97
|
|
Lease operating
|
|
|
$
|
8.56
|
|
|
|
$
|
11.07
|
|
Production taxes
|
|
|
$
|
1.94
|
|
|
|
$
|
2.95
|
|
Depreciation, depletion and amortization
|
|
|
$
|
23.38
|
|
|
|
$
|
18.87
|
|
General and administrative
|
|
|
$
|
3.35
|
|
|
|
$
|
2.93
|
|
Selected financial data:
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
Total revenues and other income
|
|
|
$
|
292,007
|
|
|
|
$
|
529,232
|
|
Total costs and expenses
|
|
|
$
|
528,931
|
|
|
|
$
|
689,161
|
|
Loss available to common shareholders
|
|
|
$
|
(171,748
|
)
|
|
|
$
|
(106,111
|
)
|
Loss per common share, basic
|
|
|
$
|
(0.84
|
)
|
|
|
$
|
(0.63
|
)
|
Loss per common share, diluted
|
|
|
$
|
(0.84
|
)
|
|
|
$
|
(0.63
|
)
|
Weighted average shares outstanding, basic
|
|
|
|
204,367
|
|
|
|
|
168,990
|
|
Weighted average shares outstanding, diluted
|
|
|
|
204,367
|
|
|
|
|
168,990
|
|
Net cash provided by operating activities
|
|
|
$
|
45,948
|
|
|
|
$
|
202,139
|
|
Net cash used in investing activities
|
|
|
$
|
(260,263
|
)
|
|
|
$
|
(1,021,610
|
)
|
Net cash provided by financing activities
|
|
|
$
|
199,323
|
|
|
|
$
|
847,286
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Data
For further information and discussion on the selected financial data
below, please refer to Whiting Petroleum Corporation’s Quarterly Report
on Form 10-Q for the quarter ended March 31, 2016, to be filed with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
1,061
|
|
|
|
$
|
16,053
|
|
Accounts receivable trade, net
|
|
|
|
261,728
|
|
|
|
|
332,428
|
|
Derivative assets
|
|
|
|
127,794
|
|
|
|
|
158,729
|
|
Prepaid expenses and other
|
|
|
|
28,923
|
|
|
|
|
27,980
|
|
Total current assets
|
|
|
|
419,506
|
|
|
|
|
535,190
|
|
Property and equipment:
|
|
|
|
|
|
|
|
|
Oil and gas properties, successful efforts method
|
|
|
|
14,128,284
|
|
|
|
|
13,904,525
|
|
Other property and equipment
|
|
|
|
165,686
|
|
|
|
|
168,277
|
|
Total property and equipment
|
|
|
|
14,293,970
|
|
|
|
|
14,072,802
|
|
Less accumulated depreciation, depletion and amortization
|
|
|
|
(3,625,294
|
)
|
|
|
|
(3,323,102
|
)
|
Total property and equipment, net
|
|
|
|
10,668,676
|
|
|
|
|
10,749,700
|
|
Other long-term assets
|
|
|
|
93,055
|
|
|
|
|
104,195
|
|
TOTAL ASSETS
|
|
|
$
|
11,181,237
|
|
|
|
$
|
11,389,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION
CONSOLIDATED BALANCE SHEETS (unaudited)
(in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable trade
|
|
$
|
77,170
|
|
$
|
77,276
|
Accrued capital expenditures
|
|
|
79,356
|
|
|
94,105
|
Revenues and royalties payable
|
|
|
124,133
|
|
|
179,601
|
Accrued interest
|
|
|
51,528
|
|
|
62,661
|
Accrued lease operating expenses
|
|
|
47,596
|
|
|
55,291
|
Accrued liabilities and other
|
|
|
60,708
|
|
|
50,261
|
Taxes payable
|
|
|
41,925
|
|
|
47,789
|
Accrued employee compensation and benefits
|
|
|
8,766
|
|
|
32,829
|
Total current liabilities
|
|
|
491,182
|
|
|
599,813
|
Long-term debt
|
|
|
5,334,595
|
|
|
5,197,704
|
Deferred income taxes
|
|
|
528,624
|
|
|
593,792
|
Asset retirement obligations
|
|
|
153,019
|
|
|
155,550
|
Deferred gain on sale
|
|
|
44,963
|
|
|
48,974
|
Other long-term liabilities
|
|
|
36,154
|
|
|
34,664
|
Total liabilities
|
|
|
6,588,537
|
|
|
6,630,497
|
Commitments and contingencies
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value, 300,000,000 shares authorized; 209,701,542
issued and 204,385,177 outstanding as of March 31, 2016 and
206,441,303 issued and 204,147,647 outstanding as of December
31, 2015
|
|
|
210
|
|
|
206
|
Additional paid-in capital
|
|
|
4,665,734
|
|
|
4,659,868
|
Retained earnings (accumulated deficit)
|
|
|
(81,218)
|
|
|
90,530
|
Total Whiting shareholders' equity
|
|
|
4,584,726
|
|
|
4,750,604
|
Noncontrolling interest
|
|
|
7,974
|
|
|
7,984
|
Total equity
|
|
|
4,592,700
|
|
|
4,758,588
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
11,181,237
|
|
$
|
11,389,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
REVENUES AND OTHER INCOME:
|
|
|
|
|
|
|
|
|
Oil, NGL and natural gas sales
|
|
|
$
|
289,697
|
|
|
|
$
|
519,848
|
|
Gain (loss) on sale of properties
|
|
|
|
(1,934
|
)
|
|
|
|
3,198
|
|
Amortization of deferred gain on sale
|
|
|
|
3,849
|
|
|
|
|
5,836
|
|
Interest income and other
|
|
|
|
395
|
|
|
|
|
350
|
|
Total revenues and other income
|
|
|
|
292,007
|
|
|
|
|
529,232
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
Lease operating expenses
|
|
|
|
114,376
|
|
|
|
|
166,365
|
|
Production taxes
|
|
|
|
25,927
|
|
|
|
|
44,378
|
|
Depreciation, depletion and amortization
|
|
|
|
312,292
|
|
|
|
|
283,519
|
|
Exploration and impairment
|
|
|
|
35,491
|
|
|
|
|
80,924
|
|
General and administrative
|
|
|
|
44,796
|
|
|
|
|
43,980
|
|
Interest expense
|
|
|
|
81,907
|
|
|
|
|
74,257
|
|
(Gain) loss on extinguishment of debt
|
|
|
|
(90,619
|
)
|
|
|
|
5,589
|
|
Commodity derivative (gain) loss, net
|
|
|
|
4,761
|
|
|
|
|
(9,851
|
)
|
Total costs and expenses
|
|
|
|
528,931
|
|
|
|
|
689,161
|
|
LOSS BEFORE INCOME TAXES
|
|
|
|
(236,924
|
)
|
|
|
|
(159,929
|
)
|
INCOME TAX EXPENSE (BENEFIT):
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
3
|
|
|
|
|
149
|
|
Deferred
|
|
|
|
(65,169
|
)
|
|
|
|
(53,950
|
)
|
Total income tax benefit
|
|
|
|
(65,166
|
)
|
|
|
|
(53,801
|
)
|
NET LOSS
|
|
|
|
(171,758
|
)
|
|
|
|
(106,128
|
)
|
Net loss attributable to noncontrolling interests
|
|
|
|
10
|
|
|
|
|
17
|
|
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
|
|
|
$
|
(171,748
|
)
|
|
|
$
|
(106,111
|
)
|
LOSS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.84
|
)
|
|
|
$
|
(0.63
|
)
|
Diluted
|
|
|
$
|
(0.84
|
)
|
|
|
$
|
(0.63
|
)
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
204,367
|
|
|
|
|
168,990
|
|
Diluted
|
|
|
|
204,367
|
|
|
|
|
168,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION
Reconciliation of Net Loss Available to Common Shareholders to
Adjusted Net Loss Available to Common Shareholders
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
Net loss available to common shareholders
|
|
|
$
|
(171,748
|
)
|
|
|
$
|
(106,111
|
)
|
Adjustments net of tax:
|
|
|
|
|
|
|
|
|
Amortization of deferred gain on sale
|
|
|
|
(2,417
|
)
|
|
|
|
(3,674
|
)
|
(Gain) loss on sale of properties
|
|
|
|
1,215
|
|
|
|
|
(2,013
|
)
|
Impairment expense
|
|
|
|
9,402
|
|
|
|
|
16,629
|
|
Penalties for early termination of drilling rig contracts
|
|
|
|
8,596
|
|
|
|
|
26,918
|
|
(Gain) loss on early extinguishment of debt
|
|
|
|
(56,909
|
)
|
|
|
|
3,518
|
|
Total measure of derivative (gain) loss reported under U.S. GAAP
|
|
|
|
2,990
|
|
|
|
|
(6,201
|
)
|
Total net cash settlements received on commodity derivatives during
the period
|
|
|
|
34,641
|
|
|
|
|
31,834
|
|
Adjusted net loss (1)
|
|
|
$
|
(174,230
|
)
|
|
|
$
|
(39,100
|
)
|
|
|
|
|
|
|
|
|
|
Adjusted net loss available to common shareholders per share, basic
|
|
|
$
|
(0.85
|
)
|
|
|
$
|
(0.23
|
)
|
Adjusted net loss available to common shareholders per share, diluted
|
|
|
$
|
(0.85
|
)
|
|
|
$
|
(0.23
|
)
|
(1)
|
|
Adjusted Net Loss Available to Common Shareholders is a non-GAAP
financial measure. Management believes it provides useful
information to investors for analysis of Whiting’s fundamental
business on a recurring basis. In addition, management believes that
Adjusted Net Loss Available to Common Shareholders is widely used by
professional research analysts and others in valuation, comparison
and investment recommendations of companies in the oil and gas
exploration and production industry, and many investors use the
published research of industry research analysts in making
investment decisions. Adjusted Net Loss Available for Common
Shareholders should not be considered in isolation or as a
substitute for net income, income from operations, net cash provided
by operating activities or other income, cash flow or liquidity
measures under U.S. GAAP and may not be comparable to other
similarly titled measures of other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION
Reconciliation of Net Cash Provided by Operating Activities to
Discretionary Cash Flow
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2016
|
|
|
2015
|
Net cash provided by operating activities
|
|
|
$
|
45,948
|
|
|
$
|
202,139
|
|
Exploration
|
|
|
|
20,519
|
|
|
|
54,507
|
|
Exploratory dry hole costs
|
|
|
|
-
|
|
|
|
(541
|
)
|
Changes in working capital
|
|
|
|
35,826
|
|
|
|
(6,852
|
)
|
Discretionary cash flow (1)
|
|
|
$
|
102,293
|
|
|
$
|
249,253
|
|
(1)
|
|
Discretionary cash flow is a non-GAAP measure. Discretionary cash
flow is presented because management believes it provides useful
information to investors for analysis of the Company’s ability to
internally fund acquisitions, exploration and development.
Discretionary cash flow should not be considered in isolation or as
a substitute for net income, income from operations, net cash
provided by operating activities or other income, cash flow or
liquidity measures under U.S. GAAP and may not be comparable to
other similarly titled measures of other companies.
|
|
|
|
Conference Call
The Company’s management will host a conference call with investors,
analysts and other interested parties on Thursday, April 28, 2016 at
11:00 a.m. EDT (10:00 a.m. CDT, 9:00 a.m. MDT) to discuss Whiting’s
first quarter 2016 financial and operating results. Participants are
encouraged to pre-register for the conference call by clicking on the
following link: http://dpregister.com/10084178.
Callers who pre-register will be given a unique telephone number and PIN
to gain immediate access on the day of the call.
Those without internet access or unable to pre-register may join the
live call by dialing: (877) 328-5506 (U.S.); (866) 450-4696 (Canada) or
(412) 317-5422 (International) to be connected to the call. Presentation
slides will be available at http://www.whiting.com
by clicking on the “Investor Relations” box on the menu and then on the
link titled "Presentations & Events."
A telephonic replay will be available beginning one to two hours after
the call on Thursday, April 28, 2016 and continuing through Thursday,
May 5, 2016. You may access this replay at (877) 344-7529 (U.S.);
855-669-9658 (Canada) or (412) 317-0088 (International) and enter the
pass code 10084178. You may also access a web archive at http://www.whiting.com
beginning one to two hours after the conference call.
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an independent
oil and gas company that explores for, develops, acquires and produces
crude oil, natural gas and natural gas liquids primarily in the Rocky
Mountain and Permian Basin regions of the United States. The Company’s
largest projects are in the Bakken and Three Forks plays in North
Dakota, the Niobrara play in northeast Colorado and its Enhanced Oil
Recovery field in Texas. The Company trades publicly under the symbol
WLL on the New York Stock Exchange. For further information, please
visit http://www.whiting.com.
Forward-Looking Statements
This news release contains statements that we believe to be
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements other than historical facts, including, without
limitation, statements regarding our future financial position, business
strategy, projected revenues, earnings, costs, capital expenditures and
debt levels, and plans and objectives of management for future
operations, are forward-looking statements. When used in this news
release, words such as we “expect,” “intend,” “plan,” “estimate,”
“anticipate,” “believe” or “should” or the negative thereof or
variations thereon or similar terminology are generally intended to
identify forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results to
differ materially from those expressed in, or implied by, such
statements.
These risks and uncertainties include, but are not limited to: declines
in or extended periods of low oil, NGL or natural gas prices; our level
of success in exploration, development and production activities; risks
related to our level of indebtedness, ability to comply with debt
covenants and periodic redeterminations of the borrowing base under our
credit agreement; impacts to financial statements as a result of
impairment write-downs; our ability to successfully complete asset
dispositions and the risks related thereto; revisions to reserve
estimates as a result of changes in commodity prices, regulation and
other factors; adverse weather conditions that may negatively impact
development or production activities; the timing of our exploration and
development expenditures; inaccuracies of our reserve estimates or our
assumptions underlying them; risks relating to any unforeseen
liabilities of ours; our ability to generate sufficient cash flows from
operations to meet the internally funded portion of our capital
expenditures budget; our ability to obtain external capital to finance
exploration and development operations; federal and state initiatives
relating to the regulation of hydraulic fracturing and air emissions;
the potential impact of federal debt reduction initiatives and tax
reform legislation being considered by the U.S. Federal Government that
could have a negative effect on the oil and gas industry; unforeseen
underperformance of or liabilities associated with acquired properties;
the impacts of hedging on our results of operations; failure of our
properties to yield oil or gas in commercially viable quantities;
availability of, and risks associated with, transport of oil and gas;
our ability to drill producing wells on undeveloped acreage prior to its
lease expiration; shortages of or delays in obtaining qualified
personnel or equipment, including drilling rigs and completion services;
uninsured or underinsured losses resulting from our oil and gas
operations; our inability to access oil and gas markets due to market
conditions or operational impediments; the impact and costs of
compliance with laws and regulations governing our oil and gas
operations; our ability to replace our oil and natural gas reserves; any
loss of our senior management or technical personnel; competition in the
oil and gas industry; cyber security attacks or failures of our
telecommunication systems; and other risks described under the caption
“Risk Factors” in our Annual Report on Form 10-K for the period ended
December 31, 2015. We assume no obligation, and disclaim any duty, to
update the forward-looking statements in this news release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160427006328/en/ Copyright Business Wire 2016
Source: Business Wire
(April 27, 2016 - 4:01 PM EDT)
News by QuoteMedia
www.quotemedia.com
|