CORRECTING and REPLACING Whiting Petroleum Corporation Announces Fourth Quarter 2017 Financial and Operating Results DENVER
2017
-
Q4 2017 Average Production at High End of Guidance; Increases 12%
from Q3 2017
-
Fourth Quarter and Full-Year 2017 Capex Below Guidance
-
Fourth Quarter 2017 Net Cash Provided by Operating Activities
Exceeds Capex by $116 Million
-
Q4 2017 Oil Differentials per Bbl Significantly below Low End of
Guidance and G&A per BOE at Low End of Guidance
2018
-
2018 Capital Budget of $750 Million Drives Estimated Average Annual
Production of 128,400 BOE/d (9% Growth over 2017 Average Production)
and Solid Free Cash Flow Generation
-
Williston Basin Operated Production Forecast to Grow 14% from Q4
2017 to Q4 2018 based on $600 Million Capital Budget
Under the 2018 Capital Plan header, second sentence of the third
paragraph should read "During 2018, Whiting plans to drill 120
Bakken/Three Forks wells in its Williston Basin area and no wells in its
Redtail area" (instead of "During 2018, Whiting plans to drill 136
Bakken/Three Forks wells in its Williston Basin area and no wells in its
Redtail area").
The corrected release reads:
WHITING PETROLEUM CORPORATION ANNOUNCES FOURTH QUARTER 2017 FINANCIAL
AND OPERATING RESULTS
2017
-
Q4 2017 Average Production at High End of Guidance; Increases 12%
from Q3 2017
-
Fourth Quarter and Full-Year 2017 Capex Below Guidance
-
Fourth Quarter 2017 Net Cash Provided by Operating Activities
Exceeds Capex by $116 Million
-
Q4 2017 Oil Differentials per Bbl Significantly below Low End of
Guidance and G&A per BOE at Low End of Guidance
2018
-
2018 Capital Budget of $750 Million Drives Estimated Average Annual
Production of 128,400 BOE/d (9% Growth over 2017 Average Production)
and Solid Free Cash Flow Generation
-
Williston Basin Operated Production Forecast to Grow 14% from Q4
2017 to Q4 2018 based on $600 Million Capital Budget
Whiting’s (NYSE: WLL) production in the fourth quarter 2017
totaled 11.8 million barrels of oil equivalent (MMBOE), comprised of 84%
crude oil/natural gas liquids (NGLs). Fourth quarter 2017 production
averaged 128,045 barrels of oil equivalent per day (BOE/d) and came in
at the high end of guidance. Capex for the fourth quarter 2017 of $171
million was $38 million below guidance. Fourth quarter 2017 net cash
provided by operating activities of $287 million exceeded capital
expenditures by $116 million. Whiting’s oil differentials of $4.21 per
barrel (Bbl) came in below the low end of guidance and general and
administrative (G&A) expense of $2.69 per BOE came in at the low end of
guidance. Guidance at the midpoint called for $7.00 per Bbl and $2.80
per BOE, respectively.
During the fourth quarter 2017 and subsequent to year-end, the Company
added to its hedges and is now 70% hedged for 2018 as a percentage of
December 2017 production with a mix of swaps and collars as detailed
later in the press release. On February 1, 2018, Whiting paid $61
million to settle a volume contract associated with its Redtail field on
a discounted basis. The contract commitment equaled 20,000 gross barrels
of oil per day through April 2020 and had an associated fee of $3.93 per
barrel.
Operating and Financial Results
The following table summarizes the operating and financial results for
the fourth quarter of 2017 and 2016, including non-cash charges recorded
during those periods:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
Production (MBOE/d) (1)
|
|
|
128.05
|
|
|
|
118.89
|
|
Net cash provided by operating activities-MM
|
|
$
|
286.7
|
|
|
$
|
236.8
|
|
Discretionary cash flow-MM (2)
|
|
$
|
266.9
|
|
|
$
|
170.9
|
|
Realized price ($/BOE)
|
|
$
|
40.07
|
|
|
$
|
33.27
|
|
Total operating revenues-MM
|
|
$
|
474.4
|
|
|
$
|
342.7
|
|
Net loss attributable to common shareholders-MM (3)(4)
|
|
$
|
(798.3
|
)
|
|
$
|
(173.3
|
)
|
Per basic share (5)
|
|
$
|
(8.80
|
)
|
|
$
|
(2.34
|
)
|
Per diluted share (5)
|
|
$
|
(8.80
|
)
|
|
$
|
(2.34
|
)
|
|
|
|
|
|
|
|
Adjusted net loss attributable to common shareholders-MM (6)
|
|
$
|
(15.7
|
)
|
|
$
|
(82.6
|
)
|
Per basic share (5)
|
|
$
|
(0.17
|
)
|
|
$
|
(1.12
|
)
|
Per diluted share (5)
|
|
$
|
(0.17
|
)
|
|
$
|
(1.12
|
)
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Fourth quarter 2016 includes 6,690 BOE/d from properties that have
since been divested.
|
(2)
|
|
A reconciliation of net cash provided by operating activities to
discretionary cash flow is included later in this news release.
|
(3)
|
|
For the three months ended December 31, 2017, this amount includes
$835 million in non-cash pre-tax impairment charges for the partial
write-down of the Redtail field in Colorado that is not currently
being developed. The Company did not recognize any impairment
write-downs with respect to its proved oil and gas properties during
the 2016 period presented.
|
(4)
|
|
Net loss attributable to common shareholders includes $73 million
and $49 million of pre-tax, non-cash derivative losses for the three
months ended December 31, 2017 and 2016, respectively.
|
(5)
|
|
All per share amounts have been retroactively adjusted for the 2016
period to reflect the Company’s one-for-four reverse stock split in
November 2017.
|
(6)
|
|
A reconciliation of net loss attributable to common shareholders to
adjusted net loss attributable to common shareholders is included
later in this news release.
|
|
|
|
The following table summarizes the operating and financial results for
the full-year 2017 and 2016, including non-cash charges recorded during
those periods:
|
|
|
|
|
|
|
|
|
Year Ended
|
|
|
December 31,
|
|
|
2017
|
|
|
2016
|
|
Production (MBOE/d) (1)
|
|
|
118.12
|
|
|
|
129.89
|
|
Net cash provided by operating activities-MM
|
|
$
|
577.1
|
|
|
$
|
595.0
|
|
Discretionary cash flow-MM (2)
|
|
$
|
736.7
|
|
|
$
|
587.9
|
|
Realized price ($/BOE)
|
|
$
|
34.55
|
|
|
$
|
30.22
|
|
Total operating revenues-MM
|
|
$
|
1,481.4
|
|
|
$
|
1,285.0
|
|
Net loss attributable to common shareholders-MM (3)(4)(5)
|
|
$
|
(1,237.6
|
)
|
|
$
|
(1,339.1
|
)
|
Per basic share (6)
|
|
$
|
(13.65
|
)
|
|
$
|
(21.27
|
)
|
Per diluted share (6)
|
|
$
|
(13.65
|
)
|
|
$
|
(21.27
|
)
|
|
|
|
|
|
|
|
Adjusted net loss attributable to common shareholders-MM (7)
|
|
$
|
(118.5
|
)
|
|
$
|
(548.8
|
)
|
Per basic share (6)
|
|
$
|
(1.31
|
)
|
|
$
|
(8.72
|
)
|
Per diluted share (6)
|
|
$
|
(1.31
|
)
|
|
$
|
(8.72
|
)
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The year ended December 31, 2016 includes 7,465 BOE/d from
properties that have since been divested.
|
(2)
|
|
A reconciliation of net cash provided by operating activities to
discretionary cash flow is included later in this news release.
|
(3)
|
|
For the year ended December 31, 2017, this amount includes $835
million in non-cash pre-tax impairment charges for the partial
write-down of the Redtail field in Colorado that is not currently
being developed. The Company did not recognize any impairment
write-downs with respect to its proved oil and gas properties during
the 2016 period presented.
|
(4)
|
|
Net loss attributable to common shareholders for the year ended
December 31, 2017 includes $401 million of pre-tax loss on sale of
properties, which primarily relates to the sale of our FBIR assets.
Net loss attributable to common shareholders for the year ended
December 31, 2016 includes $185 million of pre-tax loss on sale of
properties, which primarily relates to the sale of our North Ward
Estes properties.
|
(5)
|
|
Net loss attributable to common shareholders includes $131 million
and $151 million of pre-tax, non-cash derivative losses for the
years ended December 30, 2017 and 2016, respectively.
|
(6)
|
|
All per share amounts have been retroactively adjusted for the 2016
period to reflect the Company’s one-for-four reverse stock split in
November 2017.
|
(7)
|
|
A reconciliation of net loss attributable to common shareholders to
adjusted net loss attributable to common shareholders is included
later in this news release.
|
|
|
|
Bradley J. Holly, Whiting’s President and CEO, commented, “I would like
to thank Whiting employees for their outstanding efforts that culminated
in an excellent fourth quarter and strong start to 2018. Looking
forward, we will work together to achieve our goal of becoming a
top-tier E&P company as measured by capital efficient growth and free
cash flow generation.”
2018 Capital Plan
In 2018, Whiting plans to spend $750 million as part of its capital plan
which is forecast to generate average annual production of 128,400
BOE/d. This represents 9% growth over 2017 average annual production. At
current prices, Whiting estimates this will generate solid free cash
flow.
$600 million, or 80%, of the capital budget will be spent on operated
development activities in the Williston Basin. Williston Basin operated
production is forecast to grow 14% from the fourth quarter of 2017 to
the fourth quarter of 2018. $50 million, or 7%, will be spent on non-op
development activities in the Williston Basin. $75 million, or 10%, will
be spent on development activities at Redtail to complete 22 drilled
uncompleted (DUC) wells. $25 million, or 3%, will be dedicated to land
and facilities.
The Company ended 2017 with 51 DUC wells in its Bakken/Three Forks play
in the Williston Basin and 39 DUC wells at its DJ Basin/Redtail field in
Weld County, Colorado. During 2018, Whiting plans to drill 120
Bakken/Three Forks wells in its Williston Basin area and no wells in its
Redtail area. The Company plans to put on production 123 wells in its
Williston Basin area and 22 wells in its Redtail area.
Reserves Update
Year-end 2017 proved reserves totaled 617.6 MMBOE. Proved developed
producing reserves equaled 54% of total reserves versus 47% of 2016
year-end reserves.
Operations Update
In the fourth quarter 2017, total net production for the Company
averaged 128,045 BOE/d, a 12% increase over third quarter levels. The
Bakken/Three Forks play in the Williston Basin averaged 106,850 BOE/d, a
5% increase over third quarter levels. Operated Williston Basin
production averaged 95,000 BOE/d in the fourth quarter 2017. The Redtail
Niobrara/Codell play in the DJ Basin averaged 20,625 BOE/d, a 75%
increase over third quarter levels. During the fourth quarter 2017,
Whiting drilled 27 wells in its Williston Basin area and no wells in its
Redtail area and put 21 wells on production in the Williston Basin and
25 wells on production at Redtail.
The following table depicts noteworthy pads Whiting brought on
production during the fourth quarter 2017:
|
|
|
|
|
|
|
Pad Name
|
|
Well Count
|
|
County
|
|
Average 24-Hour IP Per Well
|
Flatland 24-9 Pad
|
|
3
|
|
McKenzie
|
|
2,862
|
Frick 24-8 Pad
|
|
3
|
|
McKenzie
|
|
2,059
|
Hellandsaas 44-8 Pad
|
|
2
|
|
McKenzie
|
|
3,085
|
King 11-8 Pad
|
|
3
|
|
Williams
|
|
2,492
|
Scanlan 11-5 Pad
|
|
2
|
|
Williams
|
|
2,332
|
Scanlan 42-9 Pad
|
|
3
|
|
Williams
|
|
1,916
|
|
|
|
|
|
|
|
Implementing New Operating Philosophy and
Compensation Metric to Incentivize Returns
Whiting plans to implement a new optimized completion philosophy
designed to maximize resource recovery and economic returns per drilling
spacing unit. In 2018, the Company anticipates completing wells with
proppant loads that range from 6-12 million pounds across 33-50 stages.
This program is designed to maximize capital productivity at the
corporate level through determining the optimal well configuration and
cost by operating area. In support of this initiative, the Whiting Board
of Directors has elected to incentivize a focus on returns and
profitability by adding a drilling rate of return metric to Whiting’s
executive compensation metrics.
Other Financial and Operating Results
The following table summarizes the Company’s net production and
commodity price realizations for the quarters ended December 31, 2017
and 2016:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
December 31,
|
|
|
|
|
2017
|
|
2016
|
|
Change
|
Production
|
|
|
|
|
|
|
|
|
Oil (MMBbl)
|
|
|
8.00
|
|
|
|
7.55
|
|
6
|
%
|
NGLs (MMBbl)
|
|
|
1.94
|
|
|
|
1.69
|
|
15
|
%
|
Natural gas (Bcf)
|
|
|
11.01
|
|
|
|
10.20
|
|
8
|
%
|
Total equivalent (MMBOE) (1)
|
|
|
11.78
|
|
|
|
10.94
|
|
8
|
%
|
Average sales price
|
|
|
|
|
|
|
|
|
Oil (per Bbl):
|
|
|
|
|
|
|
|
|
Price received
|
|
$
|
51.15
|
|
|
$
|
40.16
|
|
27
|
%
|
Effect of crude oil hedging (2)
|
|
|
(0.29
|
)
|
|
|
2.81
|
|
|
Realized price (3)
|
|
$
|
50.86
|
|
|
$
|
42.97
|
|
18
|
%
|
Weighted average NYMEX price (per Bbl) (4)
|
|
$
|
55.36
|
|
|
$
|
49.26
|
|
12
|
%
|
NGLs (per Bbl):
|
|
|
|
|
|
|
|
|
Realized price
|
|
$
|
22.90
|
|
|
$
|
12.11
|
|
89
|
%
|
Natural gas (per Mcf):
|
|
|
|
|
|
|
|
|
Realized price
|
|
$
|
1.87
|
|
|
$
|
1.87
|
|
-
|
|
Weighted average NYMEX price (per MMBtu) (4)
|
|
$
|
2.87
|
|
|
$
|
2.98
|
|
(4
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Fourth quarter 2016 includes 6,690 BOE/d from properties that have
since been divested.
|
(2)
|
|
Whiting paid $2 million and received $21 million in pre-tax cash
settlements on its crude oil hedges during the fourth quarter of
2017 and 2016, respectively. A summary of Whiting’s outstanding
hedges is included later in this news release.
|
(3)
|
|
Whiting’s realized price was reduced by $1.74 per Bbl and $1.79 per
Bbl in the fourth quarter of 2017 and 2016, respectively, due to the
Redtail fixed fee differential deficiency payment. The remaining
contract ends in April 2020.
|
(4)
|
|
Average NYMEX prices weighted for monthly production volumes.
|
|
|
|
Fourth Quarter and Full-Year 2017 Costs and
Margins
A summary of production and cash revenues and cash costs on a per BOE
basis is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
|
|
(per BOE, except production)
|
Production (MMBOE)
|
|
|
11.78
|
|
|
|
10.94
|
|
|
|
|
43.11
|
|
|
|
47.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales price, net of hedging
|
|
$
|
40.07
|
|
|
$
|
33.27
|
|
|
|
$
|
34.55
|
|
|
$
|
30.22
|
|
Lease operating expense
|
|
|
8.45
|
|
|
|
8.01
|
|
|
|
|
8.51
|
|
|
|
8.31
|
|
Production tax
|
|
|
3.13
|
|
|
|
2.71
|
|
|
|
|
2.86
|
|
|
|
2.29
|
|
Cash general & administrative
|
|
|
2.46
|
|
|
|
2.61
|
|
|
|
|
2.38
|
|
|
|
2.55
|
|
Exploration
|
|
|
1.43
|
|
|
|
0.57
|
|
|
|
|
0.84
|
|
|
|
0.96
|
|
Cash interest expense
|
|
|
3.28
|
|
|
|
4.51
|
|
|
|
|
3.70
|
|
|
|
4.67
|
|
Cash income tax benefit
|
|
|
(0.08
|
)
|
|
|
(0.67
|
)
|
|
|
|
(0.17
|
)
|
|
|
(0.15
|
)
|
|
|
$
|
21.40
|
|
|
$
|
15.53
|
|
|
|
$
|
16.43
|
|
|
$
|
11.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter and Full-Year 2017 Capital
Expenditures and Activity Summary
During the fourth quarter 2017, Whiting’s capital expenditures totaled
$171 million. This includes $7 million for non-operated drilling and
completion, $2 million for land and $4 million for facilities. Whiting
drilled 27 wells in its Williston Basin area and no wells in its Redtail
area during the quarter. The Company put 21 wells on production in the
Williston Basin and 25 wells on production at Redtail during the quarter.
During the full-year 2017, Whiting’s capital expenditures totaled $912
million. This includes $39 million for non-operated drilling and
completion, $18 million for land and $10 million for facilities. Whiting
drilled 113 wells in its Williston Basin area and 30 wells in its
Redtail area during the year. The Company put 96 wells on production in
the Williston Basin and 96 wells on production at Redtail during the
year.
Outlook for First Quarter and Full-Year 2018
The following table provides guidance for the first quarter and
full-year 2018 based on current forecasts, including Whiting’s full-year
2018 capital budget of $750 million:
|
|
|
|
|
|
|
|
Guidance
|
|
|
First Quarter
|
|
|
Full Year
|
|
|
2018
|
|
|
2018
|
Production (MMBOE)
|
|
11.1 - 11.6
|
|
|
46.5 - 47.2
|
Lease operating expense per BOE
|
|
$7.90 - $ 8.50
|
|
|
$7.90 - $ 8.30
|
General and administrative expense per BOE
|
|
$2.70 - $ 3.00
|
|
|
$2.60 - $ 2.90
|
Interest expense per BOE
|
|
$4.50 - $ 4.90
|
|
|
$4.00 - $ 4.50
|
Depreciation, depletion and amortization per BOE
|
|
$17.50 - $18.50
|
|
|
$17.10 - $18.10
|
Production taxes (% of sales revenue)
|
|
7.7% - 8.3%
|
|
|
8.0% - 8.3%
|
Oil price differentials to NYMEX per Bbl (1)
|
|
($4.50) - ($5.50)
|
|
|
($4.50) - ($5.50)
|
Gas price differential to NYMEX per Mcf
|
|
($1.50) - ($2.00)
|
|
|
($1.50) - ($2.00)
|
|
|
|
|
|
|
(1)
|
|
Does not include the effects of NGLs.
|
|
|
|
Commodity Derivative Contracts
Whiting is 70% hedged for 2018 as a percentage of December 2017
production.
The following summarizes Whiting’s crude oil hedges as of January 23,
2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
|
|
|
As a Percentage of
|
Derivative
|
|
|
Hedge
|
|
|
Contracted Crude
|
|
|
NYMEX Price
|
|
|
December 2017
|
Instrument
|
|
|
Period
|
|
|
(Bbls per Month)
|
|
|
(per Bbl)
|
|
|
Oil Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-way collars (1)
|
|
|
2018
|
|
|
|
|
|
Sub-Floor/Floor/Ceiling
|
|
|
|
|
|
|
Q1
|
|
|
1,450,000
|
|
|
$37.07 - $47.07 - $57.30
|
|
|
55.1%
|
|
|
|
Q2
|
|
|
1,450,000
|
|
|
$37.07 - $47.07 - $57.30
|
|
|
55.1%
|
|
|
|
Q3
|
|
|
1,450,000
|
|
|
$37.07 - $47.07 - $57.30
|
|
|
55.1%
|
|
|
|
Q4
|
|
|
1,450,000
|
|
|
$37.07 - $47.07 - $57.30
|
|
|
55.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps
|
|
|
2018
|
|
|
|
|
|
Fixed Price
|
|
|
|
|
|
|
Q1
|
|
|
400,000
|
|
|
$61.74
|
|
|
15.2%
|
|
|
|
Q2
|
|
|
400,000
|
|
|
$61.74
|
|
|
15.2%
|
|
|
|
Q3
|
|
|
400,000
|
|
|
$61.74
|
|
|
15.2%
|
|
|
|
Q4
|
|
|
400,000
|
|
|
$61.74
|
|
|
15.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collars
|
|
|
2019
|
|
|
|
|
|
Floor/Ceiling
|
|
|
|
|
|
|
Q1
|
|
|
150,000
|
|
|
$50.00 - $65.33
|
|
|
5.7%
|
|
|
|
Q2
|
|
|
150,000
|
|
|
$50.00 - $65.33
|
|
|
5.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Selected operating statistics:
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil, MBbl
|
|
|
8,000
|
|
|
|
7,550
|
|
|
|
29,261
|
|
|
|
33,992
|
|
NGLs, MBbl
|
|
|
1,945
|
|
|
|
1,688
|
|
|
|
6,977
|
|
|
|
6,642
|
|
Natural gas, MMcf
|
|
|
11,012
|
|
|
|
10,202
|
|
|
|
41,262
|
|
|
|
41,438
|
|
Oil equivalents, MBOE (1)
|
|
|
11,780
|
|
|
|
10,938
|
|
|
|
43,115
|
|
|
|
47,540
|
|
Average prices
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil per Bbl (excludes hedging)
|
|
$
|
51.15
|
|
|
$
|
40.16
|
|
|
$
|
44.30
|
|
|
$
|
34.36
|
|
NGLs per Bbl
|
|
$
|
22.90
|
|
|
$
|
12.11
|
|
|
$
|
16.00
|
|
|
$
|
8.88
|
|
Natural gas per Mcf
|
|
$
|
1.87
|
|
|
$
|
1.87
|
|
|
$
|
1.78
|
|
|
$
|
1.40
|
|
Per BOE data
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales price (including hedging)
|
|
$
|
40.07
|
|
|
$
|
33.27
|
|
|
$
|
34.55
|
|
|
$
|
30.22
|
|
Lease operating
|
|
$
|
8.46
|
|
|
$
|
8.01
|
|
|
$
|
8.51
|
|
|
$
|
8.31
|
|
Production taxes
|
|
$
|
3.13
|
|
|
$
|
2.71
|
|
|
$
|
2.86
|
|
|
$
|
2.29
|
|
Depreciation, depletion and amortization
|
|
$
|
23.40
|
|
|
$
|
24.75
|
|
|
$
|
22.01
|
|
|
$
|
24.64
|
|
General and administrative
|
|
$
|
2.69
|
|
|
$
|
3.17
|
|
|
$
|
2.88
|
|
|
$
|
3.09
|
|
Selected financial data:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
$
|
474,412
|
|
|
$
|
342,695
|
|
|
$
|
1,481,435
|
|
|
$
|
1,284,982
|
|
Total operating expenses
|
|
$
|
1,388,567
|
|
|
$
|
473,678
|
|
|
$
|
3,010,764
|
|
|
$
|
2,113,188
|
|
Total other expense, net
|
|
$
|
(47,101
|
)
|
|
$
|
(312,329
|
)
|
|
$
|
(191,312
|
)
|
|
$
|
(598,564
|
)
|
Net loss attributable to common shareholders
|
|
$
|
(798,278
|
)
|
|
$
|
(173,261
|
)
|
|
$
|
(1,237,648
|
)
|
|
$
|
(1,339,102
|
)
|
Loss per common share, basic (2)
|
|
$
|
(8.80
|
)
|
|
$
|
(2.34
|
)
|
|
$
|
(13.65
|
)
|
|
$
|
(21.27
|
)
|
Loss per common share, diluted (2)
|
|
$
|
(8.80
|
)
|
|
$
|
(2.34
|
)
|
|
$
|
(13.65
|
)
|
|
$
|
(21.27
|
)
|
Weighted average shares outstanding, basic
|
|
|
90,699
|
|
|
|
73,964
|
|
|
|
90,683
|
|
|
|
62,967
|
|
Weighted average shares outstanding, diluted
|
|
|
90,699
|
|
|
|
73,964
|
|
|
|
90,683
|
|
|
|
62,967
|
|
Net cash provided by operating activities
|
|
$
|
286,703
|
|
|
$
|
236,755
|
|
|
$
|
577,109
|
|
|
$
|
595,010
|
|
Net cash provided by (used in) investing activities
|
|
$
|
(204,203
|
)
|
|
$
|
(81,724
|
)
|
|
$
|
73,397
|
|
|
$
|
(222,576
|
)
|
Net cash provided by (used in) financing activities
|
|
$
|
785,707
|
|
|
$
|
(100,135
|
)
|
|
$
|
155,648
|
|
|
$
|
(315,262
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The three months and full-year ended December 31, 2016 include 6,690
BOE/d and 7,465 BOE/d, respectively, from properties that have since
been divested.
|
|
|
|
(2)
|
|
All share and per share amounts have been retroactively adjusted for
the 2016 periods to reflect the Company’s one-for-four reverse stock
split in November 2017.
|
|
|
|
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-K for the year ended December 31, 2017 to be filed with the
Securities and Exchange Commission.
|
WHITING PETROLEUM CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
879,379
|
|
|
$
|
55,975
|
|
Restricted cash
|
|
|
-
|
|
|
|
17,250
|
|
Accounts receivable trade, net
|
|
|
284,214
|
|
|
|
173,919
|
|
Prepaid expenses and other
|
|
|
26,035
|
|
|
|
26,312
|
|
Assets held for sale (1)
|
|
|
-
|
|
|
|
349,146
|
|
Total current assets
|
|
|
1,189,628
|
|
|
|
622,602
|
|
Property and equipment:
|
|
|
|
|
|
|
Oil and gas properties, successful efforts method
|
|
|
11,293,650
|
|
|
|
13,230,851
|
|
Other property and equipment
|
|
|
134,524
|
|
|
|
134,638
|
|
Total property and equipment
|
|
|
11,428,174
|
|
|
|
13,365,489
|
|
Less accumulated depreciation, depletion and amortization
|
|
|
(4,244,735
|
)
|
|
|
(4,222,071
|
)
|
Total property and equipment, net
|
|
|
7,183,439
|
|
|
|
9,143,418
|
|
Other long-term assets
|
|
|
29,967
|
|
|
|
110,122
|
|
TOTAL ASSETS
|
|
$
|
8,403,034
|
|
|
$
|
9,876,142
|
|
|
|
|
|
|
|
|
|
|
WHITING PETROLEUM CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands,
except share and per share data)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
958,713
|
|
|
$
|
-
|
|
Accounts payable trade
|
|
|
32,761
|
|
|
|
32,126
|
|
Revenues and royalties payable
|
|
|
171,028
|
|
|
|
147,226
|
|
Accrued capital expenditures
|
|
|
69,744
|
|
|
|
56,830
|
|
Accrued interest
|
|
|
40,971
|
|
|
|
44,749
|
|
Accrued lease operating expenses
|
|
|
36,865
|
|
|
|
45,015
|
|
Accrued liabilities and other
|
|
|
51,590
|
|
|
|
63,538
|
|
Taxes payable
|
|
|
28,771
|
|
|
|
39,547
|
|
Derivative liabilities
|
|
|
132,525
|
|
|
|
17,628
|
|
Accrued employee compensation and benefits
|
|
|
30,360
|
|
|
|
31,134
|
|
Liabilities related to assets held for sale (1)
|
|
|
-
|
|
|
|
538
|
|
Total current liabilities
|
|
|
1,553,328
|
|
|
|
478,331
|
|
Long-term debt
|
|
|
2,764,716
|
|
|
|
3,535,303
|
|
Deferred income taxes
|
|
|
-
|
|
|
|
475,689
|
|
Asset retirement obligations
|
|
|
129,206
|
|
|
|
168,504
|
|
Other long-term liabilities
|
|
|
36,642
|
|
|
|
69,123
|
|
Total liabilities
|
|
|
4,483,892
|
|
|
|
4,726,950
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value, 225,000,000 shares authorized; 92,094,837
issued and 90,698,889 outstanding as of December 31, 2017
and 91,793,472 issued and 90,503,482 outstanding as of December
31, 2016 (2)
|
|
|
92
|
|
|
|
367
|
|
Additional paid-in capital
|
|
|
6,405,490
|
|
|
|
6,389,435
|
|
Accumulated deficit
|
|
|
(2,486,440
|
)
|
|
|
(1,248,572
|
)
|
Total Whiting shareholders' equity
|
|
|
3,919,142
|
|
|
|
5,141,230
|
|
Noncontrolling interest
|
|
|
-
|
|
|
|
7,962
|
|
Total equity
|
|
|
3,919,142
|
|
|
|
5,149,192
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
8,403,034
|
|
|
$
|
9,876,142
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
As of December 31, 2016, “Assets held for sale” is comprised of
Whiting’s North Dakota midstream assets. This transaction closed on
January 1, 2017.
|
|
|
|
(2)
|
|
All share amounts (except par value amounts) as of December 31, 2016
have been retroactively adjusted to reflect the Company’s
one-for-four reverse stock split in November 2017.
|
|
|
|
WHITING PETROLEUM CORPORATION CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
OPERATING REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil, NGL and natural gas sales
|
|
$
|
474,412
|
|
|
$
|
342,695
|
|
|
$
|
1,481,435
|
|
|
$
|
1,284,982
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses
|
|
|
99,603
|
|
|
|
87,605
|
|
|
|
366,880
|
|
|
|
395,135
|
|
Production taxes
|
|
|
36,862
|
|
|
|
29,590
|
|
|
|
123,483
|
|
|
|
108,715
|
|
Depreciation, depletion and amortization
|
|
|
275,651
|
|
|
|
270,705
|
|
|
|
948,939
|
|
|
|
1,171,582
|
|
Exploration and impairment
|
|
|
872,384
|
|
|
|
35,903
|
|
|
|
936,177
|
|
|
|
121,468
|
|
General and administrative
|
|
|
31,644
|
|
|
|
34,651
|
|
|
|
124,288
|
|
|
|
146,878
|
|
Derivative (gain) loss, net
|
|
|
75,566
|
|
|
|
27,845
|
|
|
|
122,847
|
|
|
|
(587
|
)
|
(Gain) loss on sale of properties
|
|
|
63
|
|
|
|
(9,162
|
)
|
|
|
401,113
|
|
|
|
184,567
|
|
Amortization of deferred gain on sale
|
|
|
(3,206
|
)
|
|
|
(3,459
|
)
|
|
|
(12,963
|
)
|
|
|
(14,570
|
)
|
Total operating expenses
|
|
|
1,388,567
|
|
|
|
473,678
|
|
|
|
3,010,764
|
|
|
|
2,113,188
|
|
LOSS FROM OPERATIONS
|
|
|
(914,155
|
)
|
|
|
(130,983
|
)
|
|
|
(1,529,329
|
)
|
|
|
(828,206
|
)
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(47,447
|
)
|
|
|
(312,475
|
)
|
|
|
(191,088
|
)
|
|
|
(557,620
|
)
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,540
|
)
|
|
|
(42,236
|
)
|
Interest income and other
|
|
|
346
|
|
|
|
146
|
|
|
|
1,316
|
|
|
|
1,292
|
|
Total other expense
|
|
|
(47,101
|
)
|
|
|
(312,329
|
)
|
|
|
(191,312
|
)
|
|
|
(598,564
|
)
|
LOSS BEFORE INCOME TAXES
|
|
|
(961,256
|
)
|
|
|
(443,312
|
)
|
|
|
(1,720,641
|
)
|
|
|
(1,426,770
|
)
|
INCOME TAX BENEFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
(924
|
)
|
|
|
(7,305
|
)
|
|
|
(7,291
|
)
|
|
|
(7,190
|
)
|
Deferred
|
|
|
(162,054
|
)
|
|
|
(262,742
|
)
|
|
|
(475,688
|
)
|
|
|
(80,456
|
)
|
Total income tax benefit
|
|
|
(162,978
|
)
|
|
|
(270,047
|
)
|
|
|
(482,979
|
)
|
|
|
(87,646
|
)
|
NET LOSS
|
|
|
(798,278
|
)
|
|
|
(173,265
|
)
|
|
|
(1,237,662
|
)
|
|
|
(1,339,124
|
)
|
Net loss attributable to noncontrolling interests
|
|
|
-
|
|
|
|
4
|
|
|
|
14
|
|
|
|
22
|
|
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
$
|
(798,278
|
)
|
|
$
|
(173,261
|
)
|
|
$
|
(1,237,648
|
)
|
|
$
|
(1,339,102
|
)
|
LOSS PER COMMON SHARE (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(8.80
|
)
|
|
$
|
(2.34
|
)
|
|
$
|
(13.65
|
)
|
|
$
|
(21.27
|
)
|
Diluted
|
|
$
|
(8.80
|
)
|
|
$
|
(2.34
|
)
|
|
$
|
(13.65
|
)
|
|
$
|
(21.27
|
)
|
WEIGHTED AVERAGE SHARES OUTSTANDING (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
90,699
|
|
|
|
73,964
|
|
|
|
90,683
|
|
|
|
62,967
|
|
Diluted
|
|
|
90,699
|
|
|
|
73,964
|
|
|
|
90,683
|
|
|
|
62,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
All share and per share amounts have been retroactively adjusted for
the 2016 periods to reflect the Company’s one-for-four reverse stock
split in November 2017.
|
|
|
|
WHITING PETROLEUM CORPORATION Reconciliation of Net
Loss Attributable to Common Shareholders to Adjusted
Net Loss Attributable to Common Shareholders (in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
Net loss attributable to common shareholders
|
|
$
|
(798,278
|
)
|
|
$
|
(173,261
|
)
|
|
|
$
|
(1,237,648
|
)
|
|
$
|
(1,339,102
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred gain on sale
|
|
|
(3,206
|
)
|
|
|
(3,459
|
)
|
|
|
|
(12,963
|
)
|
|
|
(14,570
|
)
|
(Gain) loss on sale of properties
|
|
|
63
|
|
|
|
(9,162
|
)
|
|
|
|
401,113
|
|
|
|
184,567
|
|
Impairment expense
|
|
|
855,583
|
|
|
|
29,716
|
|
|
|
|
899,853
|
|
|
|
75,622
|
|
Penalties for early termination of drilling rig contracts
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
18,078
|
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,540
|
|
|
|
42,236
|
|
Total measure of derivative (gain) loss reported under U.S. GAAP
|
|
|
75,566
|
|
|
|
27,845
|
|
|
|
|
122,847
|
|
|
|
(587
|
)
|
Total net cash settlements received (paid) on commodity derivatives
during the period
|
|
|
(2,374
|
)
|
|
|
21,206
|
|
|
|
|
8,282
|
|
|
|
151,738
|
|
Acceleration of unamortized discount upon conversion of mandatory
convertible notes (non-taxable)
|
|
|
-
|
|
|
|
244,175
|
|
|
|
|
-
|
|
|
|
244,175
|
|
Tax impact of adjustments above
|
|
|
(220,299
|
)
|
|
|
(24,673
|
)
|
|
|
|
(338,119
|
)
|
|
|
(170,492
|
)
|
Valuation allowance established on deferred tax assets
|
|
|
119,274
|
|
|
|
-
|
|
|
|
|
119,274
|
|
|
|
-
|
|
Tax impact of enactment of Tax Cuts and Jobs Act
|
|
|
(42,033
|
)
|
|
|
-
|
|
|
|
|
(42,033
|
)
|
|
|
-
|
|
Tax impact of Section 382 limitation on net operating losses and tax
credits
|
|
|
-
|
|
|
|
(194,973
|
)
|
|
|
|
(40,624
|
)
|
|
|
259,494
|
|
Adjusted net loss attributable to common shareholders (1)
|
|
$
|
(15,704
|
)
|
|
$
|
(82,586
|
)
|
|
|
$
|
(118,478
|
)
|
|
$
|
(548,841
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss attributable to common shareholders per share,
basic (2)
|
|
$
|
(0.17
|
)
|
|
$
|
(1.12
|
)
|
|
|
$
|
(1.31
|
)
|
|
$
|
(8.72
|
)
|
Adjusted net loss attributable to common shareholders per share,
diluted (2)
|
|
$
|
(0.17
|
)
|
|
$
|
(1.12
|
)
|
|
|
$
|
(1.31
|
)
|
|
$
|
(8.72
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Adjusted Net Loss Attributable 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 Attributable 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 Attributable 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.
|
|
|
|
(2)
|
|
All per share amounts have been retroactively adjusted for the
2016 periods to reflect the Company’s one-for-four reverse stock
split in November 2017.
|
|
|
|
WHITING PETROLEUM CORPORATION Reconciliation of Net
Cash Provided by Operating Activities to Discretionary Cash Flow (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
December 31,
|
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
|
2017
|
|
2016
|
Net cash provided by operating activities
|
|
$
|
286,703
|
|
|
$
|
236,755
|
|
|
|
$
|
577,109
|
|
$
|
595,010
|
|
Exploration
|
|
|
16,801
|
|
|
|
6,187
|
|
|
|
|
36,324
|
|
|
45,846
|
|
Exploratory dry hole costs
|
|
|
-
|
|
|
|
(97
|
)
|
|
|
|
-
|
|
|
(134
|
)
|
Changes in working capital
|
|
|
(36,621
|
)
|
|
|
(71,952
|
)
|
|
|
|
123,253
|
|
|
(52,837
|
)
|
Discretionary cash flow (1)
|
|
$
|
266,883
|
|
|
$
|
170,893
|
|
|
|
$
|
736,686
|
|
$
|
587,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, February 22, 2018 at
11:00 a.m. ET (10:00 a.m. CT, 9:00 a.m. MT) to discuss Whiting’s fourth
quarter 2017 financial and operating results. Participants are
encouraged to pre-register for the conference call by clicking on the
following link: http://dpregister.com/10115954.
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, February 22, 2018 and continuing through Thursday,
March 1, 2018. 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 10115954. 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 develops, produces, acquires and explores for
crude oil, natural gas and natural gas liquids primarily in the Rocky
Mountains region of the United States. The Company’s largest projects
are in the Bakken and Three Forks plays in North Dakota and Montana and
the Niobrara play in northeast Colorado. 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;
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; the potential impact of changes in laws, including tax
reform, that could have a negative effect on the oil and gas industry;
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, 2016.
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/20180221006421/en/ Copyright Business Wire 2018
Source: Business Wire
(February 21, 2018 - 4:29 PM EST)
News by QuoteMedia
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