Whiting Petroleum Corporation Announces Second Quarter 2015 Financial and Operating Results
-
Record Q2 2015 Production of 170,245 BOE/d, a 2% Increase over Q1
2015; Exceeds High End of Guidance Despite 8,300 BOE/d Property Sales
-
Adjusted Net Income of $9.2 Million or $0.04 per Diluted Share
-
Q2 2015 Discretionary Cash Flow Totals $380.7 Million, a 53%
Increase Over Q1 2015
-
Enhanced Completions Deliver 40% to 50% Production Increases Across
Multiple Williston Basin Areas; Enhanced Completion Dunn County Well
Tests at 4,300 BOE/d
-
Redtail Niobrara Field Production of 17,065 BOE/d in Q2 2015, Up
31% Over Q1 2015
-
$185 Million Additional Q2 2015 Non-Core Property Sales; $300
Million of Total Asset Sales in 1H 2015
-
2015 Capital Budget Revised to $2.15 Billion for 6.5% Production
Growth
Whiting’s (NYSE: WLL) production in the second quarter 2015
totaled 15.5 million barrels of oil equivalent (MMBOE), 89% crude
oil/natural gas liquids (NGLs). Second quarter 2015 production averaged
170,245 barrels of oil equivalent per day (BOE/d). This represents a 2%
increase over the first quarter 2015 despite non-core property sales of
8,300 BOE/d.
James J. Volker, Whiting’s Chairman, President and CEO, commented,
“Net of the sale of 8,300 BOE/d of production in the first half of 2015
from non-core assets, we project full-year 2015 production of 59.5 MMBOE
or 6.5% growth over 2014. We plan to run eight rigs in the second
half of 2015 versus our original plan for 11 rigs and have established a
new 2015 capital budget of $2.15 billion versus our previous estimate of
$2.3 billion.”
Mr. Volker continued, “Our financial position remains strong. Year-to-date,
we have sold $300 million of assets, which more than funds the increase
in our capital budget. We ended the second quarter with $60
million in cash and nothing drawn on our $4.5 billion borrowing base.
In addition, we anticipate further non-core asset sales by year end.
Assuming no further asset sales in 2015, a Q4 2015 production rate of
approximately 153,000 BOE/d, an eight rig program (six in the Bakken and
two in the Niobrara) in 2016, and $50 per Bbl / $3 per MMBtu NYMEX
prices, we expect 2016 capex and discretionary cash flow to be
approximately equal at $1 billion and 2016 production to flatten out and
average approximately 147,000 BOE/d.”
Operating and Financial Results
The following table summarizes the operating and financial results for
the second quarter of 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
|
Production (MBOE/d)
|
|
|
170.24
|
|
|
|
109.76
|
|
55
|
%
|
|
Discretionary cash flow-MM (1)
|
|
$
|
380.7
|
|
|
$
|
556.2
|
|
(32
|
%)
|
|
Realized price ($/BOE)
|
|
$
|
44.65
|
|
|
$
|
82.16
|
|
(46
|
%)
|
|
Total revenues-MM
|
|
$
|
590.0
|
|
|
$
|
835.6
|
|
(29
|
%)
|
|
Net income (loss) available to common shareholders-MM (2)
|
|
$
|
(149.3
|
)
|
|
$
|
151.4
|
|
(199
|
%)
|
|
Per basic share
|
|
$
|
(0.73
|
)
|
|
$
|
1.27
|
|
(157
|
%)
|
|
Per diluted share
|
|
$
|
(0.73
|
)
|
|
$
|
1.26
|
|
(158
|
%)
|
|
Adjusted net income available to common shareholders-MM (3)
|
|
$
|
9.2
|
|
|
$
|
167.9
|
|
(95
|
%)
|
|
Per basic share
|
|
$
|
0.04
|
|
|
$
|
1.41
|
|
(97
|
%)
|
|
Per diluted share
|
|
$
|
0.04
|
|
|
$
|
1.40
|
|
(97
|
%)
|
|
(1)
|
|
A reconciliation of net cash provided by operating activities to
discretionary cash flow is included later in this news release.
|
(2)
|
|
For the three months ended June 30, 2015, net loss available to
common shareholders included $144 million of pre-tax, non-cash
derivative losses or $0.44 per basic and diluted share after tax.
For the three months ended June 30, 2014, net income available to
common shareholders included $21 million of pre-tax, non-cash
derivative losses or $0.11 per basic and diluted share after tax.
|
(3)
|
|
A reconciliation of net income (loss) available to common
shareholders to adjusted net income (loss) available to common
shareholders is included later in this news release.
|
|
|
|
The following table summarizes the first six months operating and
financial results for 2015 and 2014:
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2015
|
|
2014
|
|
Change
|
Production (MBOE/d)
|
|
|
168.60
|
|
|
|
104.94
|
|
61
|
%
|
Discretionary cash flow-MM (1)
|
|
$
|
629.9
|
|
|
$
|
1,038.1
|
|
(39
|
%)
|
Realized price ($/BOE)
|
|
$
|
41.36
|
|
|
$
|
81.14
|
|
(49
|
%)
|
Total revenues-MM
|
|
$
|
1,119.2
|
|
|
$
|
1,575.9
|
|
(29
|
%)
|
Net income (loss) available to common shareholders-MM (2)
|
|
$
|
(255.4
|
)
|
|
$
|
260.5
|
|
(198
|
%)
|
Per basic share
|
|
$
|
(1.37
|
)
|
|
$
|
2.19
|
|
(163
|
%)
|
Per diluted share
|
|
$
|
(1.37
|
)
|
|
$
|
2.17
|
|
(163
|
%)
|
Adjusted net income (loss) available to common shareholders-MM (3)
|
|
$
|
(29.9
|
)
|
|
$
|
294.0
|
|
(110
|
%)
|
Per basic share
|
|
$
|
(0.16
|
)
|
|
$
|
2.47
|
|
(106
|
%)
|
Per diluted share
|
|
$
|
(0.16
|
)
|
|
$
|
2.45
|
|
(107
|
%)
|
(1)
|
|
A reconciliation of net cash provided by operating activities to
discretionary cash flow is included later in this news release.
|
(2)
|
|
For the six months ended June 30, 2015, net loss available to common
shareholders included $184 million of pre-tax, non-cash derivative
losses or $0.62 per basic and diluted share after tax. For the six
months ended June 30, 2014, net income available to common
shareholders included $45 million of pre-tax, non-cash derivative
losses or $0.24 per basic share and $0.23 per diluted share after
tax.
|
(3)
|
|
A reconciliation of net income (loss) available to common
shareholders to adjusted net income (loss) available to common
shareholders is included later in this news release.
|
|
|
|
$185 Million of Additional Q2 Non-Core Property
Sales; $300 Million in First Half 2015
As detailed in our press release dated July 17, 2015, during the second
quarter 2015, Whiting sold two packages of older, conventional, operated
and non-operated properties to private buyers for a total of $185
million. Including $108 million of non-core property sales announced in
Whiting’s first quarter 2015 financial and operating results press
release, year-to-date Whiting has completed a total of $293 million of
non-core asset sales. These assets had reserves of 26.2 MMBOE (67% oil)
and estimated remaining 2015 production of 8,300 BOE/d. The sales were
consistent with Whiting’s continuing 2015 plans to sell mature
properties with higher LOE per BOE than its core Bakken and Niobrara
assets. LOE for the properties averaged approximately $20.00 per BOE
versus $6.50 per BOE in the Bakken and $7.50 per BOE in the Niobrara.
In addition, during the second quarter Whiting received $6.0 million of
proceeds from fees and an approximate proportionately reduced 5%
overriding royalty interest from the sale of its working interest in
select non-operated wellbores in the Bakken/Three Forks play in the
Williston Basin. This brings total first half 2015 asset sales to $300
million.
Operations Update
Core Development Areas
Williston Basin Development
We hold 1,172,198 gross (736,699 net) acres in the Williston Basin of
North Dakota and Montana. In the second quarter 2015, production from
the Bakken/Three Forks averaged a record 135,835 BOE/d, a sequential
increase of 2% over the first quarter 2015. The Bakken/Three Forks
represented 80% of Whiting’s total second quarter production.
Larger Volume Completions Deliver 40-50% Production Increases.
We have been testing larger volume completions across our acreage in the
Williston Basin. These completions incorporated sand volumes of four to
six million pounds with well costs ranging from $6.5 million to $7.5
million. As detailed in our press release dated July 17, 2015, enhanced
completion wells have resulted in production increases relative to
offset wells of 40% at our Polar field, 50% at our Walleye field, and
50% at our Pronghorn field. Results from enhanced completion wells in
all three areas are outperforming our 700 MBOE type curve.
Enhanced Completion Dunn County Well Flows at 4,300 BOE/d.
On July 22, 2015 the Skunk Creek 1-8-17-15H tested at a 24-hour initial
production rate of 4,300 BOE/d from the Middle Bakken formation. This is
the highest test rate recorded by Whiting and to date one of the best
wells drilled in Dunn County. The well was a hybrid style completion
with 32 stages and 6.2 million pounds of sand with an estimated well
cost of $6.8 million.
Denver Julesburg Basin Development
We hold a total of 167,070 gross (128,447 net) acres in our Redtail
field, located in the Denver Julesburg Basin in Weld County, Colorado.
Whiting has established production in four zones, the Niobrara “A”, “B”
and “C” zones and the Codell/Fort Hays formations. Net production from
the Redtail field averaged 17,065 BOE/d in the second quarter 2015, a
31% sequential increase over the first quarter 2015.
We continue to expand our Codell/Fort Hays drilling program. The Razor
11G-0210B well was recently completed in the Codell/Fort Hays formation
and has been flowing back for approximately 12 days. Early results have
been strong with recent 24-hour production rates in excess of 460 BOE/d.
Our first Codell/Fort Hays formation test, the Razor 25B-2551 well,
averaged 289 BOE/d in its first 290 days on production. The Codell
formation is prospective throughout our acreage base at Redtail.
Our Horsetail 30F pad was designed to test downspacing potential in the
Niobrara “A”, “B” and “C” zones. This eight-well pad was drilled on a
32-well spacing pattern that equates to eight wells in the “A” zone, 16
wells in the “B” zone and eight wells in the “C” zone on a fully
developed spacing unit. This compares to our typical 16 wells per
drilling unit spacing pattern in the “A” and “B” zones. The pad has been
on production for approximately 80 days with increasing rates. Recent
performance has been very encouraging with peak seven-day average rates
in excess of 500 BOE/d per well.
Construction at phase two of our Redtail gas plant is nearing completion
and the plant should be fully commissioned by the end of August 2015.
This will expand plant inlet capacity from 20 MMcf per day (MMcf/d)
currently to 50 MMcf/d in third quarter of 2015 and 70 MMcf/d in the
first half of 2016. The expanded gas plant will allow for planned
development of the field in an environmentally responsible manner as we
profitably capture the gas and NGLs produced at the field.
Other Financial and Operating Results
The following table summarizes the Company’s net production and
commodity price realizations for the quarters ended June 30, 2015 and
2014.
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
June 30,
|
|
|
Production
|
|
2015
|
|
2014
|
|
Change
|
Oil (MMBbl)
|
|
|
12.43
|
|
|
8.01
|
|
|
55
|
%
|
NGLs (MMBbl)
|
|
|
1.30
|
|
|
0.79
|
|
|
65
|
%
|
Natural gas (Bcf)
|
|
|
10.61
|
|
|
7.15
|
|
|
48
|
%
|
Total equivalent (MMBOE)
|
|
|
15.49
|
|
|
9.99
|
|
|
55
|
%
|
|
|
|
|
|
|
|
Average sales price
|
|
|
|
|
|
|
Oil (per Bbl):
|
|
|
|
|
|
|
Price received
|
|
$
|
48.95
|
|
$
|
93.03
|
|
|
(47
|
%)
|
Effect of crude oil hedging (1)
|
|
|
3.32
|
|
|
(0.64
|
)
|
|
|
Realized price
|
|
$
|
52.27
|
|
$
|
92.39
|
|
|
(43
|
%)
|
Weighted average NYMEX price (per Bbl) (2)
|
|
$
|
57.95
|
|
$
|
103.03
|
|
|
(44
|
%)
|
|
|
|
|
|
|
|
NGLs (per Bbl):
|
|
|
|
|
|
|
Realized price
|
|
$
|
16.86
|
|
$
|
39.30
|
|
|
(57
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per Mcf):
|
|
|
|
|
|
|
Realized price
|
|
$
|
1.92
|
|
$
|
6.95
|
|
|
(72
|
%)
|
Weighted average NYMEX price (per Mcf) (2)
|
|
$
|
2.61
|
|
$
|
4.68
|
|
|
(44
|
%)
|
(1)
|
|
Whiting received $41 million and paid $5 million in pre-tax cash
settlements on its crude oil hedges during the second quarter of
2015 and 2014, respectively. A summary of Whiting’s outstanding
hedges is included later in this news release.
|
(2)
|
|
Average NYMEX prices weighted for monthly production volumes.
|
|
|
|
Second Quarter and First Half 2015 Costs and
Margins
A summary of production, cash revenues and cash costs on a per BOE basis
is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(per BOE, except production)
|
Production (MMBOE)
|
|
|
15.49
|
|
|
|
9.99
|
|
|
30.52
|
|
|
18.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales price, net of hedging
|
|
$
|
44.65
|
|
|
$
|
82.16
|
|
$
|
41.36
|
|
$
|
81.14
|
Lease operating expense
|
|
|
9.25
|
|
|
|
11.85
|
|
|
10.15
|
|
|
12.27
|
Production tax
|
|
|
3.66
|
|
|
|
6.89
|
|
|
3.31
|
|
|
6.79
|
Cash general & administrative
|
|
|
2.46
|
|
|
|
3.13
|
|
|
2.47
|
|
|
2.99
|
Exploration
|
|
|
2.09
|
|
|
|
1.35
|
|
|
2.85
|
|
|
1.98
|
Cash interest expense
|
|
|
4.61
|
|
|
|
3.71
|
|
|
4.71
|
|
|
3.89
|
Cash income tax expense (benefit)
|
|
|
(0.01
|
)
|
|
|
0.74
|
|
|
-
|
|
|
0.44
|
|
|
$
|
22.59
|
|
|
$
|
54.49
|
|
$
|
17.87
|
|
$
|
52.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter and First Half 2015 Drilling and
Expenditures Summary
The table below summarizes Whiting’s operated and non-operated drilling
activity and capital expenditures for the three and six months ended
June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
Gross/Net Wells Completed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total New
|
|
|
% Success
|
|
|
CAPEX
|
|
|
|
|
Producing
|
|
|
Non-Producing
|
|
|
Drilling
|
|
|
Rate
|
|
|
(in MM)
|
|
Q2 15
|
|
|
131 / 78.7
|
|
|
0 / 0
|
|
|
131 / 78.7
|
|
|
100% / 100%
|
|
|
$
|
751.3 (1)
|
|
6M 15
|
|
|
376 / 186.1
|
|
|
1 / 0.9
|
|
|
377 / 187.0
|
|
|
99.7% / 99.5%
|
|
|
$
|
1,586.5 (2)
|
|
(1)
|
|
Includes $10 million for land, $43 million for facilities and $22
million in drilling rig early termination fees.
|
(2)
|
|
Includes $21 million for land, $92 million for facilities and $65
million in drilling rig early termination fees.
|
|
|
|
Outlook for Third Quarter and Full-Year 2015
The following table provides guidance for the third quarter and
full-year 2015 based on current forecasts, including Whiting’s full-year
2015 capital budget of $2.15 billion.
|
|
|
|
|
|
|
|
Guidance
|
|
|
|
|
Third Quarter
|
|
|
|
|
Full-Year
|
|
|
|
|
2015
|
|
|
|
|
2015
|
|
Production (MMBOE)
|
|
|
14.7 - 15.1
|
|
|
|
|
59.2 - 59.8
|
|
Lease operating expense per BOE
|
|
|
$ 9.00 - $ 9.50
|
|
|
|
|
$ 9.50 - $ 9.90
|
|
General and administrative expense per BOE
|
|
|
$ 2.90 - $ 3.10
|
|
|
|
|
$ 2.90 - $ 3.10
|
|
Interest expense per BOE
|
|
|
$ 5.50 - $ 5.90
|
|
|
|
|
$ 5.40 - $ 5.80
|
|
Depreciation, depletion and amortization per BOE
|
|
|
$ 20.75 - $ 21.75
|
|
|
|
|
$ 20.30 - $ 20.90
|
|
Production taxes (% of sales revenue)
|
|
|
8.5% - 8.7%
|
|
|
|
|
8.5% - 8.9%
|
|
Oil price differentials to NYMEX per Bbl (1)
|
|
|
($ 8.50) - ($ 9.50)
|
|
|
|
|
($ 8.50) - ($ 9.50)
|
|
Gas price differential to NYMEX per Mcf
|
|
|
($ 0.60) - ($ 0.20)
|
|
|
|
|
($ 0.60) - ($ 0.20)
|
|
|
|
|
|
|
|
|
|
|
|
(1) Does not include the effect of NGLs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity Derivative Contracts
Whiting is 47% hedged for July – December 2015 and 40% hedged for 2016
as a percentage of June 2015 production.
The following summarizes Whiting’s crude oil hedges as of July 1, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
|
|
|
As a Percentage of
|
Derivative
|
|
|
Hedge
|
|
|
Contracted Crude
|
|
|
NYMEX Price
|
|
|
June 2015
|
Instrument
|
|
|
Period
|
|
|
(Bbls per Month)
|
|
|
(per Bbl)
|
|
|
Oil Production
|
Three-way collars (1)
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
|
1,450,000
|
|
|
$44.48 - $54.83 - $70.54
|
|
|
35.5%
|
|
|
|
Q4
|
|
|
1,450,000
|
|
|
$44.48 - $54.83 - $70.54
|
|
|
35.5%
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
34.3%
|
|
|
|
Q2
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
34.3%
|
|
|
|
Q3
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
34.3%
|
|
|
|
Q4
|
|
|
1,400,000
|
|
|
$43.75 - $53.75 - $74.40
|
|
|
34.3%
|
Collars
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
|
209,200
|
|
|
$ 51.06 - $ 57.37
|
|
|
5.1%
|
|
|
|
Q4
|
|
|
209,200
|
|
|
$ 51.06 - $ 57.37
|
|
|
5.1%
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
6.1%
|
|
|
|
Q2
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
6.1%
|
|
|
|
Q3
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
6.1%
|
|
|
|
Q4
|
|
|
250,000
|
|
|
$51.00 - $63.48
|
|
|
6.1%
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
6.1%
|
|
|
|
Q2
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
6.1%
|
|
|
|
Q3
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
6.1%
|
|
|
|
Q4
|
|
|
250,000
|
|
|
$53.00 - $70.44
|
|
|
6.1%
|
Swaps
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
|
259,160
|
|
|
$76.57
|
|
|
6.4%
|
|
|
|
Q4
|
|
|
251,230
|
|
|
$76.25
|
|
|
6.2%
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Selected operating statistics:
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
Oil, MBbl
|
|
|
12,425
|
|
|
|
8,010
|
|
|
|
24,606
|
|
|
|
15,251
|
|
|
NGLs, MBbl
|
|
|
1,298
|
|
|
|
787
|
|
|
|
2,412
|
|
|
|
1,435
|
|
|
Natural gas, MMcf
|
|
|
10,615
|
|
|
|
7,150
|
|
|
|
20,988
|
|
|
|
13,852
|
|
|
Oil equivalents, MBOE
|
|
|
15,492
|
|
|
|
9,988
|
|
|
|
30,516
|
|
|
|
18,994
|
|
|
Average prices
|
|
|
|
|
|
|
|
|
|
Oil per Bbl (excludes hedging)
|
|
$
|
48.95
|
|
|
$
|
93.03
|
|
|
$
|
44.15
|
|
|
$
|
91.04
|
|
|
NGLs per Bbl
|
|
$
|
16.86
|
|
|
$
|
39.30
|
|
|
$
|
15.13
|
|
|
$
|
45.47
|
|
|
Natural gas per Mcf
|
|
$
|
1.92
|
|
|
$
|
6.95
|
|
|
$
|
2.26
|
|
|
$
|
6.73
|
|
|
Per BOE data
|
|
|
|
|
|
|
|
|
|
Sales price (including hedging)
|
|
$
|
44.65
|
|
|
$
|
82.16
|
|
|
$
|
41.36
|
|
|
$
|
81.14
|
|
|
Lease operating
|
|
$
|
9.25
|
|
|
$
|
11.85
|
|
|
$
|
10.15
|
|
|
$
|
12.27
|
|
|
Production taxes
|
|
$
|
3.66
|
|
|
$
|
6.89
|
|
|
$
|
3.31
|
|
|
$
|
6.79
|
|
|
Depreciation, depletion and amortization
|
|
$
|
20.81
|
|
|
$
|
26.88
|
|
|
$
|
19.86
|
|
|
$
|
26.52
|
|
|
General and administrative
|
|
$
|
2.90
|
|
|
$
|
3.56
|
|
|
$
|
2.92
|
|
|
$
|
3.57
|
|
|
Selected financial data:
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Total revenues and other income
|
|
$
|
590,009
|
|
|
$
|
835,622
|
|
|
$
|
1,119,241
|
|
|
$
|
1,575,871
|
|
|
Total costs and expenses
|
|
$
|
816,699
|
|
|
$
|
584,279
|
|
|
$
|
1,505,860
|
|
|
$
|
1,139,116
|
|
|
Net income (loss) available to common shareholders
|
|
$
|
(149,274
|
)
|
|
$
|
151,444
|
|
|
$
|
(255,385
|
)
|
|
$
|
260,513
|
|
|
Earnings (loss) per common share, basic
|
|
$
|
(0.73
|
)
|
|
$
|
1.27
|
|
|
$
|
(1.37
|
)
|
|
$
|
2.19
|
|
|
Earnings (loss) per common share, diluted
|
|
$
|
(0.73
|
)
|
|
$
|
1.26
|
|
|
$
|
(1.37
|
)
|
|
$
|
2.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding, basic
|
|
|
204,130
|
|
|
|
118,968
|
|
|
|
186,657
|
|
|
|
118,946
|
|
|
Average shares outstanding, diluted
|
|
|
204,130
|
|
|
|
120,027
|
|
|
|
186,657
|
|
|
|
120,045
|
|
|
Net cash provided by operating activities
|
|
$
|
325,997
|
|
|
$
|
567,769
|
|
|
$
|
528,136
|
|
|
$
|
891,666
|
|
|
Net cash used in investing activities
|
|
$
|
(423,287
|
)
|
|
$
|
(742,568
|
)
|
|
$
|
(1,444,897
|
)
|
|
$
|
(1,322,122
|
)
|
|
Net cash provided by (used in) financing activities
|
|
$
|
51,529
|
|
|
$
|
(4,555
|
)
|
|
$
|
898,815
|
|
|
$
|
(41,921
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2015, to be filed with the
Securities and Exchange Commission.
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION CONSOLIDATED BALANCE
SHEETS (unaudited) (in thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
60,154
|
|
|
$
|
78,100
|
|
Accounts receivable trade, net
|
|
|
454,506
|
|
|
|
543,172
|
|
Derivative assets
|
|
|
32,076
|
|
|
|
135,577
|
|
Prepaid expenses and other
|
|
|
50,598
|
|
|
|
86,150
|
|
Total current assets
|
|
|
597,334
|
|
|
|
842,999
|
|
Property and equipment:
|
|
|
|
|
|
|
Oil and gas properties, successful efforts method
|
|
|
15,698,099
|
|
|
|
14,949,702
|
|
Other property and equipment
|
|
|
292,125
|
|
|
|
276,582
|
|
Total property and equipment
|
|
|
15,990,224
|
|
|
|
15,226,284
|
|
Less accumulated depreciation, depletion and amortization
|
|
|
(3,388,964
|
)
|
|
|
(3,083,572
|
)
|
Total property and equipment, net
|
|
|
12,601,260
|
|
|
|
12,142,712
|
|
Goodwill
|
|
|
875,676
|
|
|
|
875,676
|
|
Debt issuance costs
|
|
|
80,058
|
|
|
|
53,274
|
|
Other long-term assets
|
|
|
59,594
|
|
|
|
104,843
|
|
TOTAL ASSETS
|
|
$
|
14,213,922
|
|
|
$
|
14,019,504
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION CONSOLIDATED BALANCE
SHEETS (unaudited) (in thousands, except share and per
share data)
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
LIABILITIES AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable trade
|
|
$89,557
|
|
$62,664
|
Accrued capital expenditures
|
|
189,404
|
|
429,970
|
Revenues and royalties payable
|
|
223,871
|
|
254,018
|
Current portion of Production Participation Plan liability
|
|
-
|
|
113,391
|
Accrued liabilities and other
|
|
148,343
|
|
169,193
|
Taxes payable
|
|
65,019
|
|
63,822
|
Accrued interest
|
|
67,791
|
|
67,913
|
Deferred income taxes
|
|
18,886
|
|
47,545
|
Total current liabilities
|
|
802,871
|
|
1,208,516
|
Long-term debt
|
|
5,245,354
|
|
5,628,782
|
Deferred income taxes
|
|
1,216,022
|
|
1,230,630
|
Asset retirement obligations
|
|
146,079
|
|
167,741
|
Deferred gain on sale
|
|
55,453
|
|
60,305
|
Other long-term liabilities
|
|
40,312
|
|
20,486
|
Total liabilities
|
|
7,506,091
|
|
8,316,460
|
Commitments and contingencies
|
|
|
|
|
Equity:
|
|
|
|
|
Common stock, $0.001 par value, 300,000,000 shares authorized; 206,472,261
issued and 204,142,725 outstanding as of June 30, 2015 and
168,346,020 issued and 166,889,152 outstanding as of December 31,
2014
|
|
206
|
|
168
|
Additional paid-in capital
|
|
4,645,266
|
|
3,385,094
|
|
|
|
|
|
Retained earnings
|
|
2,054,327
|
|
2,309,712
|
|
|
|
|
|
Total Whiting shareholders' equity
|
|
6,699,799
|
|
5,694,974
|
Noncontrolling interest
|
|
8,032
|
|
8,070
|
Total equity
|
|
6,707,831
|
|
5,703,044
|
TOTAL LIABILITIES AND EQUITY
|
|
$14,213,922
|
|
$14,019,504
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION CONSOLIDATED
STATEMENTS OF INCOME (unaudited) (in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
REVENUES AND OTHER INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil, NGL and natural gas sales
|
|
$
|
650,527
|
|
|
$
|
825,760
|
|
|
$
|
1,170,375
|
|
|
$
|
1,547,010
|
Gain (loss) on sale of properties
|
|
|
(64,776
|
)
|
|
|
1,796
|
|
|
|
(61,578
|
)
|
|
|
12,355
|
Amortization of deferred gain on sale
|
|
|
3,738
|
|
|
|
7,473
|
|
|
|
9,574
|
|
|
|
15,217
|
Interest income and other
|
|
|
520
|
|
|
|
593
|
|
|
|
870
|
|
|
|
1,289
|
Total revenues and other income
|
|
|
590,009
|
|
|
|
835,622
|
|
|
|
1,119,241
|
|
|
|
1,575,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
|
|
|
143,375
|
|
|
|
118,361
|
|
|
|
309,740
|
|
|
|
233,147
|
Production taxes
|
|
|
56,729
|
|
|
|
68,857
|
|
|
|
101,107
|
|
|
|
128,887
|
Depreciation, depletion and amortization
|
|
|
322,411
|
|
|
|
268,509
|
|
|
|
605,930
|
|
|
|
503,774
|
Exploration and impairment
|
|
|
57,557
|
|
|
|
31,512
|
|
|
|
138,481
|
|
|
|
73,619
|
General and administrative
|
|
|
44,987
|
|
|
|
35,555
|
|
|
|
88,967
|
|
|
|
67,889
|
Interest expense
|
|
|
89,176
|
|
|
|
39,045
|
|
|
|
163,433
|
|
|
|
81,189
|
Loss on early extinguishment of debt
|
|
|
45
|
|
|
|
-
|
|
|
|
5,634
|
|
|
|
-
|
Change in Production Participation Plan liability
|
|
|
-
|
|
|
|
(3,636
|
)
|
|
|
-
|
|
|
|
-
|
Commodity derivative loss, net
|
|
|
102,419
|
|
|
|
26,076
|
|
|
|
92,568
|
|
|
|
50,611
|
Total costs and expenses
|
|
|
816,699
|
|
|
|
584,279
|
|
|
|
1,505,860
|
|
|
|
1,139,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
(226,690
|
)
|
|
|
251,343
|
|
|
|
(386,619
|
)
|
|
|
436,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE (BENEFIT):
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
(84
|
)
|
|
|
7,355
|
|
|
|
65
|
|
|
|
8,355
|
Deferred
|
|
|
(77,311
|
)
|
|
|
92,562
|
|
|
|
(131,261
|
)
|
|
|
167,923
|
Total income tax expense (benefit)
|
|
|
(77,395
|
)
|
|
|
99,917
|
|
|
|
(131,196
|
)
|
|
|
176,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
|
(149,295
|
)
|
|
|
151,426
|
|
|
|
(255,423
|
)
|
|
|
260,477
|
Net loss attributable to noncontrolling interests
|
|
|
21
|
|
|
|
18
|
|
|
|
38
|
|
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
|
|
$
|
(149,274
|
)
|
|
$
|
151,444
|
|
|
$
|
(255,385
|
)
|
|
$
|
260,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.73
|
)
|
|
$
|
1.27
|
|
|
$
|
(1.37
|
)
|
|
$
|
2.19
|
Diluted
|
|
$
|
(0.73
|
)
|
|
$
|
1.26
|
|
|
$
|
(1.37
|
)
|
|
$
|
2.17
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
204,130
|
|
|
|
118,968
|
|
|
|
186,657
|
|
|
|
118,946
|
Diluted
|
|
|
204,130
|
|
|
|
120,027
|
|
|
|
186,657
|
|
|
|
120,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION Reconciliation of Net
Income (Loss) Available to Common Shareholders to Adjusted
Net Income (Loss) Available to Common Shareholders (in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net income (loss) available to common shareholders
|
|
$
|
(149,274
|
)
|
|
$
|
151,444
|
|
|
$
|
(255,385
|
)
|
|
$
|
260,513
|
|
Adjustments net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred gain on sale
|
|
|
(2,353
|
)
|
|
|
(4,708
|
)
|
|
|
(6,027
|
)
|
|
|
(9,587
|
)
|
(Gain) loss on sale of properties
|
|
|
40,777
|
|
|
|
(1,132
|
)
|
|
|
38,763
|
|
|
|
(7,784
|
)
|
Impairment expense
|
|
|
15,823
|
|
|
|
11,369
|
|
|
|
32,455
|
|
|
|
22,700
|
|
Penalties for early termination of drilling rig contracts
|
|
|
13,726
|
|
|
|
-
|
|
|
|
40,644
|
|
|
|
-
|
|
Early extinguishment of debt
|
|
|
28
|
|
|
|
-
|
|
|
|
3,546
|
|
|
|
-
|
|
Change in Production Participation Plan liability
|
|
|
-
|
|
|
|
(2,291
|
)
|
|
|
-
|
|
|
|
-
|
|
Total measure of derivative loss reported under U.S. GAAP
|
|
|
64,472
|
|
|
|
16,428
|
|
|
|
58,271
|
|
|
|
31,885
|
|
Total net cash settlements received (paid) on commodity
derivatives during the period
|
|
|
25,972
|
|
|
|
(3,229
|
)
|
|
|
57,805
|
|
|
|
(3,696
|
)
|
Adjusted net income (loss) (1)
|
|
$
|
9,171
|
|
|
$
|
167,881
|
|
|
$
|
(29,928
|
)
|
|
$
|
294,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) available to common shareholders per
share, basic
|
|
$
|
0.04
|
|
|
$
|
1.41
|
|
|
$
|
(0.16
|
)
|
|
$
|
2.47
|
|
Adjusted net income (loss) available to common shareholders per
share, diluted
|
|
$
|
0.04
|
|
|
$
|
1.40
|
|
|
$
|
(0.16
|
)
|
|
$
|
2.45
|
|
(1)
|
|
Adjusted Net Income (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 Income (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 Income (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
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Net cash provided by operating activities
|
|
$
|
325,997
|
|
|
$
|
567,769
|
|
|
$
|
528,136
|
|
|
$
|
891,666
|
|
Exploration
|
|
|
32,421
|
|
|
|
13,466
|
|
|
|
86,928
|
|
|
|
37,588
|
|
Exploratory dry hole costs
|
|
|
(258
|
)
|
|
|
(70
|
)
|
|
|
(799
|
)
|
|
|
(3,622
|
)
|
Changes in working capital
|
|
|
22,526
|
|
|
|
(24,978
|
)
|
|
|
15,674
|
|
|
|
112,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discretionary cash flow (1)
|
|
$
|
380,686
|
|
|
$
|
556,187
|
|
|
$
|
629,939
|
|
|
$
|
1,038,148
|
|
(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, July 30, 2015 at
11:00 a.m. EDT (10:00 a.m. CDT, 9:00 a.m. MDT) to discuss Whiting’s
second quarter 2015 financial and operating results. Participants are
encouraged to pre-register for the conference call by clicking on the
following link: http://dpregister.com/10068706.
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, July 30, 2015 and continuing through Thursday,
August 6, 2015. You may access this replay at (877) 344-7529 (U.S.);
855-669-9658 (Canada) or (412) 317-0088 (International) and entering the
pass code 10068706. 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 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 oil, NGL or natural gas prices; our level of success in exploration,
development and production activities; risks related to our level of
indebtedness 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; adverse weather conditions
that may negatively impact development or production activities; the
timing of our exploration and development expenditures; our ability to
obtain sufficient quantities of CO2 necessary to carry out our EOR
projects; inaccuracies of our reserve estimates or our assumptions
underlying them; revisions to reserve estimates as a result of changes
in commodity prices, regulation and other factors; 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 and acquisitions; federal
and state initiatives relating to the regulation of hydraulic
fracturing; 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; our ability to identify and complete acquisitions and to
successfully integrate acquired businesses; 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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2015
and Annual Report on Form 10-K for the year ended December 31, 2014. 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/20150729006390/en/ Copyright Business Wire 2015
Source: Business Wire
(July 29, 2015 - 4:00 PM EDT)
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