- Q3 2016 Net Cash Provided by
Operating Activities of $151 Million Exceeds Capex by $66
Million
- Q3 2016 Average Production of
119,890 BOE/d at High End of Guidance
- Q3 2016 LOE Below Low End of
Guidance at $7.98 per BOE
- Williston Basin 5+ Million Pound
Completions Continue to Track 900 MBOE Type Curve after 265
Days
- Williston Basin 10+ Million Pound
Completions Tracking 1,500 MBOE Type Curve
- 13 New McKenzie County Wells Test at
Average Rate of 3,727 BOE/d
Whiting’s (NYSE: WLL) 2016 third quarter capex of $85
million was under budget and relatively flat with the second
quarter. Production in the third quarter came in at the high end of
guidance and totaled 11.0 million barrels of oil equivalent
(MMBOE), an average of 119,890 barrels of oil equivalent per day
(BOE/d). Production was comprised of 85% crude oil/natural gas
liquids (NGLs). Whiting continued to lower its lease operating
expense (LOE). LOE for the third quarter averaged $7.98 per BOE,
below the low end of guidance. Third quarter LOE benefitted from
the sale of higher operating expense North Ward Estes properties,
continued operating efficiencies and better than anticipated
production results.
James J. Volker, Whiting’s Chairman, President and CEO,
commented, “During the third quarter, we continued to improve our
capital efficiency with production at the high end of guidance on
lower than projected capital spending, and LOE per BOE improving to
$7.98 per BOE on the sale of North Ward Estes. This resulted in our
net cash from operating activities exceeding our capital spending
by $66 million. In the Williston Basin, the combination of high
quality acreage and innovative completion methods drove solid
results. Our thirteen new wells completed in McKenzie County tested
at an average rate of 3,727 BOE/d and our leading edge design 10+
million pound completions in Williams County are tracking a 1,500
MBOE type curve. We believe the focus on balance sheet strength and
capital spending discipline in the first nine months of 2016
provides us with a strong financial base to continue to deliver
solid operational results and realize the potential of our world
class asset base.”
Operating and Financial
Results
The following table summarizes the operating and financial
results for the third quarter of 2016 and 2015, including non-cash
charges recorded during those periods:
Three Months Ended September
30, 2016 2015 Production (MBOE/d)
(1) 119.89 160.59 Net cash provided by operating activities-MM $
151.3 $ 373.1 Discretionary cash flow-MM (2) $ 163.1 $ 279.9
Realized price ($/BOE) $ 32.34 $ 37.86 Total revenues-MM $ 129.2 $
508.0 Net loss available to common shareholders-MM (3)(4)(5)(6)(7)
$ (693.1 ) $ (1,865.1 ) Per basic share $ (2.47 ) $ (9.14 ) Per
diluted share $ (2.47 ) $ (9.14 ) Adjusted net loss
available to common shareholders-MM (8) $ (133.1 ) $ (35.4 ) Per
basic share $ (0.47 ) $ (0.17 ) Per diluted share $ (0.47 ) $ (0.17
) (1) Third quarter 2015 includes 10,180 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 September 30, 2016, net loss
available to common shareholders included $11 million of pre-tax,
non-cash derivative losses or $0.02 per basic and diluted share
after tax. For the three months ended September 30, 2015, net loss
available to common shareholders included $153 million of pre-tax,
non-cash derivative gains or $0.47 per basic and diluted share
after tax. (4) For the three months ended September 30,
2016, net loss available to common shareholders included a $47
million pre-tax, non-cash gain on extinguishment of debt, or $0.10
per basic and diluted share after tax. The Company did not
recognize any gain on extinguishment of debt during the 2015 period
presented. (5)
For the three months ended September 30,
2015, this amount includes $1.7 billion in non-cash pre-tax
impairment charges for the partial write-down of the North Ward
Estes Field in Texas and other non-core proved and unproved oil,
gas, and CO2 properties that were not being developed due to
depressed oil and gas prices. The Company did not recognize any
impairment write-downs with respect to its proved oil and gas or
CO2 properties during the 2016 period presented.
(6) During the three months ended September 30, 2015,
goodwill related to the acquisition of Kodiak Oil and Gas Corp. in
December 2014 (the “Kodiak Acquisition”) with a carrying amount of
$870 million was written down to a fair value of zero, resulting in
a non-cash impairment charge of $870 million, which resulted from
lower commodity prices. The Company did not recognize any goodwill
impairment write-downs during the 2016 period presented. (7)
During the third quarter of 2016, the Company’s note exchange
transactions resulted in an ownership shift under Section 382 of
the Internal Revenue Code and will limit the Company’s usage of
certain of its net operating losses and tax credits in the future.
Accordingly, the Company recorded a non-cash charge of $454 million
for the write-down of and valuation allowance against the Company’s
deferred tax assets. (8) A reconciliation of net loss
available to common shareholders to adjusted net loss available to
common shareholders is included later in this news release.
The following table summarizes the first nine months operating
and financial results for 2016 and 2015, including non-cash charges
recorded during those periods:
Nine Months Ended
September 30, 2016 2015
Production (MBOE/d) (1) 133.58 165.90 Net cash provided by
operating activities-MM $ 358.3 $ 901.3 Discretionary cash flow-MM
(2) $ 417.0 $ 909.8 Realized price ($/BOE) $ 29.31 $ 40.22 Total
revenues-MM $ 760.8 $ 1,627.3 Net loss available to common
shareholders-MM (3)(4)(5)(6)(7) $ (1,165.8 ) $ (2,120.5 ) Per basic
share $ (4.92 ) $ (11.01 ) Per diluted share $ (4.92 ) $ (11.01 )
Adjusted net loss available to common shareholders-MM (8) $
(466.3 ) $ (65.4 ) Per basic share $ (1.97 ) $ (0.34 ) Per diluted
share $ (1.97 ) $ (0.34 ) (1) The nine months ended
September 30, 2015 includes 10,520 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 nine months
ended September 30, 2016, net loss available to common shareholders
included $102 million of pre-tax, non-cash derivative losses or
$0.27 per basic and diluted share after tax. For the nine months
ended September 30, 2015, net loss available to common shareholders
included $32 million of pre-tax, non-cash derivative losses or
$0.10 per basic and diluted share after tax. (4) For the
nine months ended September 30, 2016, net loss available to common
shareholders included a $42 million pre-tax, non-cash loss on
extinguishment of debt, or $0.11 per basic and diluted share after
tax. For the nine months ended September 30, 2015, net loss
available to common shareholders included a $6 million pre-tax,
non-cash loss on extinguishment of debt, or less than $0.01 per
basic and diluted share after tax. (5) For the nine months
ended September 30, 2015, this amount includes $1.7 billion in
non-cash pre-tax impairment charges for the partial write-down of
the North Ward Estes Field in Texas and other non-core proved and
unproved oil, gas, and CO2 properties that were not being developed
due to depressed oil and gas prices. The Company did not recognize
any impairment write-downs with respect to its proved oil and gas
or CO2 properties during the 2016 period presented. (6)
During the nine months ended September 30, 2015, goodwill related
to the Kodiak Acquisition with a carrying amount of $870 million,
was written down to a fair value of zero, resulting in a non-cash
impairment charge of $870 million, which resulted from lower
commodity prices. The Company did not recognize any goodwill
impairment write-downs during the 2016 period presented. (7)
During the nine months ended September 30, 2016, the Company’s note
exchange transactions resulted in an ownership shift under Section
382 of the Internal Revenue Code and will limit the Company’s usage
of certain of its net operating losses and tax credits in the
future. Accordingly, the Company recorded a non-cash charge of $454
million for the write-down of and valuation allowance against the
Company’s deferred tax assets. (8) A reconciliation of net
loss available to common shareholders to adjusted net loss
available to common shareholders is included later in this news
release.
Operations Update
Whiting controls 738,479 gross (443,125 net) acres in the
Williston Basin and 153,937 gross (129,035 net) acres at its
Redtail Niobrara play. In the third quarter 2016, total net
production for the Company averaged 119,890 BOE/d. The Bakken/Three
Forks play in the Williston Basin averaged 105,645 BOE/d and the
Redtail Niobrara/Codell play in the DJ Basin averaged 10,945
BOE/d.
Enhanced completion wells continue to track 900 MBOE type
curve after 265 days. Whiting’s previously disclosed set of 48
enhanced completion wells in the Williston Basin continue to
produce in line with a 900 MBOE type curve after 265 days. These
wells span Whiting’s acreage and are located in Billings, Dunn,
McKenzie, Mountrail, Stark and Williams counties, North Dakota. On
average, these wells were completed with 36 stages and 6.6 million
pounds of sand.
Large volume completion wells tracking 1,500 MBOE type curve
after 90 days. During the third quarter 2016, Whiting brought
on two large volume completions located approximately ten miles
apart in Williams County, North Dakota. Whiting completed the
Carscallen 31-14-4H Bakken well with 13.6 million pounds of sand
and the P Bibler 155-99-16-31-30-1H Bakken well with 10.1 million
pounds of sand. Both wells are tracking a 1,500 MBOE type curve
after 90 days on production.
Rolla Federal Unit wells test at average rate of 3,727
BOE/d. During the quarter, Whiting recommenced operations in
the Central Williston Basin. Between mid-September and early
October 2016, the company brought on thirteen wells in McKenzie
County at its Rolla Federal unit. The wells were completed with an
average of 7.3 million pounds of sand and tested at an average
24-hour rate of 3,727 BOE/d.
Faster drilling times and longer laterals increase value at
Redtail. In Whiting’s Redtail Niobrara/Codell play in the DJ
Basin, the average time to drill a well from spud to spud has
decreased 30% to 7 days over the past twelve months. This was
driven by more efficient operations and a new wellbore design that
eliminates intermediate casing. The Company continues to increase
the number of 1,280-acre spaced wells in its drilling program.
Year-to-date, it has drilled 34 1,280-acre spaced wells in an
average time of 4.5 days from spud to total depth and 7.5 days from
spud to spud. It recently drilled a 1,280-acre spaced well from
spud to total depth in a Whiting record time of 2.75 days. Whiting
estimates that a 1,280-acre spaced well has the potential to
deliver approximately 40% higher reserves for only a 12.5% increase
in cost relative to its standard 960-acre spaced well.
Other Financial and Operating
Results
The following table summarizes the Company’s net production and
commodity price realizations for the quarters ended September 30,
2016 and 2015:
Three Months
Ended September 30, 2016 2015
Change
Production
Oil (MMBbl) 7.76 11.70 (34 %) NGLs (MMBbl) 1.62 1.49 9 % Natural
gas (Bcf) 9.91 9.53 4 % Total equivalent (MMBOE) (1) 11.03 14.77
(25 %)
Average sales
price
Oil (per Bbl): Price received $ 36.58 $ 39.45 (7 %) Effect of crude
oil hedging (2) 5.30 4.72 Realized price $ 41.88 $
44.17 (5 %) Weighted average NYMEX price (per Bbl) (3) $ 44.93 $
46.52 (3 %)
NGLs (per Bbl):
Realized price $ 8.65 $ 10.55 (18 %)
Natural gas (per Mcf):
Realized price $ 1.79 $ 2.83 (37 %) Weighted average NYMEX price
(per Mcf) (3) $ 2.93 $ 2.74 7 % (1) Third quarter
2015 includes 10,180 BOE/d from properties that have since been
divested. (2) Whiting received $41 million and $55 million
in pre-tax cash settlements on its crude oil hedges during the
third quarter of 2016 and 2015, respectively. A summary of
Whiting’s outstanding hedges is included later in this news
release. (3) Average NYMEX prices weighted for monthly
production volumes.
Third Quarter and First Nine Months
2016 Costs and Margins
A summary of production, cash revenues and cash costs on a per
BOE basis is as follows:
Three Months Ended Nine Months Ended September
30, September 30, 2016 2015
2016 2015
(per BOE, except production) Production (MMBOE) 11.03 14.77
36.60 45.29 Sales price, net of hedging $ 32.34 $ 37.86 $
29.31 $ 40.22 Lease operating expense 7.98 8.50 8.40 9.61
Production tax 2.39 3.00 2.16 3.21 Cash general &
administrative 2.49 2.54 2.53 2.50 Exploration 0.79 1.43 1.08 2.38
Cash interest expense 4.64 4.83 4.72 4.75 Cash income tax expense
(benefit) 0.01 (0.03 ) - (0.01 ) $
14.04 $ 17.59 $ 10.42 $ 17.78
Third Quarter and First Nine Months
2016 Drilling and Expenditures Summary
The table below summarizes Whiting’s operated and non-operated
drilling activity and capital expenditures for the three and nine
months ended September 30, 2016.
Gross/Net Wells Completed Total New % Success
CAPEX Producing Non-Producing Drilling
Rate (in MM) Q3 16 22 / 9.9 0 / 0 22 / 9.9
100% / 100% $
85.0 (1)
9M 16 64 / 38.2 0 / 0 64 / 38.2 100% / 100% $
431.6 (2)
(1) Includes $0 million for non-operated drilling and
completion, $2 million in drilling rig early termination fees, $1
million for land, and $0 for facilities. (2) Includes $34
million for non-operated drilling and completion, $18 million in
drilling rig early termination fees, $10 million for facilities and
$3 million for land.
Outlook for Fourth Quarter and
Full-Year 2016
The following table provides guidance for the fourth quarter and
full-year 2016 based on current forecasts, including Whiting’s
full-year 2016 capital budget of $550 million.
Guidance Fourth
Quarter Full Year 2016
2016 Production (MMBOE) 10.4 - 10.8
47.0 - 47.4 Lease operating expense per BOE $ 8.00 - $ 8.60 $ 8.20
- $ 8.50 General and administrative expense per BOE $ 2.75 - $ 3.25
$ 3.00 - $ 3.15 Interest expense per BOE (1) $ 6.50 - $ 7.00 $ 6.50
- $ 6.90 Depreciation, depletion and amortization per BOE $ 25.00 -
$26.00 $ 24.50 - $ 25.10 Production taxes (% of sales revenue)
8.75% - 9.25% 8.30% - 8.70% Oil price differentials to NYMEX per
Bbl (2) ($ 8.00) - ($ 9.00) ($ 8.00) - ($ 8.40) Gas price
differential to NYMEX per Mcf ($ 0.90) - ($ 1.20) ($ 0.95) - ($
1.15) (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 $4.50 – $5.00
per BOE. (2) Does not include the effect of NGLs.
Commodity Derivative
Contracts
Whiting is 68% hedged for the remainder of 2016 and 49% hedged
for 2017 as a percentage of September 2016 oil production.
The following summarizes Whiting’s crude oil hedges as of
October 1, 2016:
Weighted Average As a
Percentage of Derivative Hedge Contracted
Crude NYMEX Price September 2016
Instrument Period (Bbls per Month) (per
Bbl) Oil Production Three-way collars (1)
2016 Q4 1,400,000 $43.75 - $53.75 - $74.40 57.4%
2017
Q1 950,000 $34.21 - $44.47 - $60.06 39.0% Q2 950,000 $34.21 -
$44.47 - $60.06 39.0% Q3 950,000 $34.21 - $44.47 - $60.06 39.0% Q4
950,000 $34.21 - $44.47 - $60.06 39.0%
Collars 2016
Q4 250,000 $51.00 - $63.48 10.3%
2017 Q1 250,000 $53.00 -
$70.44 10.3% Q2 250,000 $53.00 - $70.44 10.3% Q3 250,000 $53.00 -
$70.44 10.3% Q4 250,000 $53.00 - $70.44 10.3% (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
Nine Months Ended September 30, September
30, 2016 2015 2016
2015 Selected operating statistics:
Production Oil, MBbl 7,758 11,699 26,442 36,305 NGLs, MBbl
1,621 1,487 4,954 3,899 Natural gas, MMcf 9,908 9,529 31,235 30,517
Oil equivalents, MBOE 11,030 14,774 36,602 45,290
Average
prices Oil per Bbl (excludes hedging) $ 36.58 $ 39.45 $ 32.70 $
42.63 NGLs per Bbl $ 8.65 $ 10.55 $ 7.78 $ 13.38 Natural gas per
Mcf $ 1.79 $ 2.83 $ 1.25 $ 2.44
Per BOE data Sales price
(including hedging) $ 32.34 $ 37.86 $ 29.31 $ 40.22 Lease operating
$ 7.98 $ 8.50 $ 8.40 $ 9.61 Production taxes $ 2.39 $ 3.00 $ 2.16 $
3.21 Depreciation, depletion and amortization $ 25.80 $ 21.40 $
24.61 $ 20.36 General and administrative $ 3.07 $ 3.03 $ 3.07 $
2.95
Selected financial data: (In thousands, except per
share data) Total revenues and other income $ 129,225 $ 508,041
$ 760,815 $ 1,627,282 Total costs and expenses $ 464,729 $
2,968,006 $ 1,744,273 $ 4,473,866 Net loss available to common
shareholders $ (693,052 ) $ (1,865,108 ) $ (1,165,841 ) $
(2,120,493 ) Loss per common share, basic $ (2.47 ) $ (9.14 ) $
(4.92 ) $ (11.01 ) Loss per common share, diluted $ (2.47 ) $ (9.14
) $ (4.92 ) $ (11.01 )
Weighted average shares outstanding,
basic
280,418 204,143 237,100 192,549 Weighted average shares
outstanding, diluted 280,418 204,143 237,100 192,549 Net cash
provided by operating activities $ 151,321 $ 373,120 $ 358,255 $
901,256 Net cash provided by (used in) investing activities $
216,109 $ (395,418 ) $ (140,852 ) $ (1,840,315 ) Net cash provided
by (used in) financing activities $ (364,439 ) $ (125 ) $ (215,127
) $ 898,690
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 September 30,
2016, to be filed with the Securities and Exchange Commission.
WHITING PETROLEUM
CORPORATIONCONSOLIDATED BALANCE SHEETS (unaudited)(in
thousands)
September 30, December 31, 2016
2015 ASSETS Current assets: Cash and cash
equivalents $ 18,329 $ 16,053 Accounts receivable trade, net
216,378 332,428 Derivative assets 34,054 158,729 Prepaid expenses
and other 17,877 27,980 Total current
assets 286,638 535,190 Property and
equipment: Oil and gas properties, successful efforts method
13,721,164 13,904,525 Other property and equipment 135,788
168,277 Total property and equipment
13,856,952 14,072,802 Less accumulated depreciation, depletion and
amortization (4,188,500 ) (3,323,102 ) Total property
and equipment, net 9,668,452 10,749,700
Other long-term assets 110,654 104,195
TOTAL ASSETS $ 10,065,744 $ 11,389,085
WHITING PETROLEUM
CORPORATIONCONSOLIDATED BALANCE SHEETS (unaudited)(in
thousands, except share and per share data)
September 30, December 31, 2016
2015 LIABILITIES AND EQUITY Current
liabilities: Accounts payable trade $ 41,382 $ 77,276 Revenues and
royalties payable 138,075 179,601 Accrued capital expenditures
45,702 94,105 Accrued interest 9,052 62,661 Accrued lease operating
expenses 34,260 55,291 Accrued liabilities and other 60,598 50,261
Taxes payable 45,868 47,789 Accrued employee compensation and
benefits 23,007 32,829 Total current
liabilities 397,944 599,813 Long-term debt 4,085,629 5,197,704
Deferred income taxes
738,432
593,792 Asset retirement obligations 164,289 155,550 Deferred gain
on sale 38,471 48,974 Other long-term liabilities 36,960
34,664 Total liabilities
5,461,725
6,630,497 Commitments and contingencies Equity:
Common stock, $0.001 par value,
600,000,000 shares authorized; 289,676,901 issued and
284,343,983 outstanding as of September 30, 2016 and
206,441,303 issued and 204,147,647 outstanding as of
December 31, 2015
290 206 Additional paid-in capital
5,671,074
4,659,868 Retained earnings (accumulated deficit) (1,075,311
) 90,530 Total Whiting shareholders' equity
4,596,053
4,750,604 Noncontrolling interest 7,966 7,984
Total equity
4,604,019
4,758,588
TOTAL LIABILITIES AND EQUITY $
10,065,744
$ 11,389,085
WHITING PETROLEUM
CORPORATIONCONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)(in thousands, except per share data)
Three Months Ended Nine
Months Ended September 30, September 30,
2016 2015 2016
2015 REVENUES AND OTHER INCOME: Oil, NGL and
natural gas sales $ 315,554 $ 504,155 $ 942,287 $ 1,674,530 Loss on
sale of properties (189,934 ) (359 ) (193,729 ) (61,937 )
Amortization of deferred gain on sale 3,490 3,666 11,111 13,240
Interest income and other 115 579
1,146 1,449 Total revenues and other
income 129,225 508,041 760,815
1,627,282
COSTS AND EXPENSES:
Lease operating expenses 87,982 125,575 307,530 435,315 Production
taxes 26,372 44,303 79,125 145,410 Depreciation, depletion and
amortization 284,569 316,147 900,877 922,077 Exploration and
impairment 24,293 1,690,679 85,565 1,829,160 Goodwill impairment -
869,713 - 869,713 General and administrative 33,908 44,821 112,227
133,788 Interest expense 84,578 84,551 245,145 247,984 (Gain) loss
on extinguishment of debt (46,541 ) - 42,236 5,634 Derivative gain,
net (30,432 ) (207,783 ) (28,432 )
(115,215 ) Total costs and expenses 464,729
2,968,006 1,744,273 4,473,866
LOSS BEFORE INCOME TAXES (335,504 ) (2,459,965 )
(983,458 ) (2,846,584 )
INCOME TAX EXPENSE (BENEFIT):
Current 113 (422 ) 115 (357 ) Deferred 357,438
(594,425 ) 182,286 (725,686 ) Total income tax
expense (benefit) 357,551 (594,847 )
182,401 (726,043 )
NET LOSS (693,055 )
(1,865,118 ) (1,165,859 ) (2,120,541 ) Net loss attributable to
noncontrolling interests 3 10 18
48
NET LOSS AVAILABLE TO COMMON
SHAREHOLDERS $ (693,052 ) $ (1,865,108 ) $ (1,165,841 ) $
(2,120,493 )
LOSS PER COMMON SHARE: Basic $ (2.47 ) $
(9.14 ) $ (4.92 ) $ (11.01 ) Diluted $ (2.47 ) $ (9.14 ) $ (4.92 )
$ (11.01 )
WEIGHTED AVERAGE SHARES OUTSTANDING: Basic
280,418 204,143 237,100
192,549 Diluted 280,418 204,143
237,100 192,549
WHITING PETROLEUM
CORPORATIONReconciliation of Net Loss Available to Common
Shareholders toAdjusted Net Loss Available to Common
Shareholders(in thousands, except per share data)
Three Months Ended Nine
Months Ended September 30, September 30,
2016 2015 2016
2015 Net loss available to common shareholders $
(693,052 ) $ (1,865,108 ) $ (1,165,841 ) $ (2,120,493 ) Adjustments
net of tax: Amortization of deferred gain on sale (2,188 ) (2,308 )
(6,966 ) (8,335 ) Loss on sale of properties 119,089 226 121,468
38,989 Impairment expense 9,747 1,051,017 28,783 1,083,472 Goodwill
impairment (non-taxable) - 869,713 - 869,713 Penalties for early
termination of drilling rig contracts 1,338 7,076 11,335 47,720
(Gain) loss on extinguishment of debt (29,181 ) - 26,482 3,546
Total measure of derivative gain
reported under U.S. GAAP
(19,080 ) (130,799 ) (17,826 ) (72,528 )
Total net cash settlements received
on commodity derivatives during the period
25,781 34,760 81,843 92,565
Tax impact of Section 382
limitation on net operating losses
454,467 - 454,467
- Adjusted net loss (1) $ (133,079 ) $ (35,423 ) $ (466,255
) $ (65,351 ) Adjusted net loss available to common
shareholders per share, basic $ (0.47 ) $ (0.17 ) $ (1.97 ) $ (0.34
) Adjusted net loss available to common shareholders per share,
diluted $ (0.47 ) $ (0.17 ) $ (1.97 ) $ (0.34 ) (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
CORPORATIONReconciliation of Net Cash Provided by Operating
Activities to Discretionary Cash Flow(in thousands)
Three
Months Ended Nine Months Ended September 30,
September 30, 2016 2015
2016 2015 Net cash provided by
operating activities $ 151,321 $ 373,120 $ 358,255 $ 901,256
Exploration 8,747 21,072 39,659 108,000 Exploratory dry hole costs
(37 ) (68 ) (37 ) (867 ) Changes in working capital 3,020
(114,248 ) 19,115 (98,574 )
Discretionary cash flow (1) $ 163,051 $ 279,876 $
416,992 $ 909,815 (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,
October 27, 2016 at 11:00 a.m. EDT (10:00 a.m. CDT, 9:00 a.m. MDT)
to discuss Whiting’s third 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/10093213. 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, October 27, 2016 and continuing through
Thursday, November 3, 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 10093213. 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 region of the United
States. The Company’s largest projects are in the Bakken and Three
Forks plays in North Dakota and 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; 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 Quarterly Report
on Form 10-Q for the period ended June 30, 2016 and 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/20161026007005/en/
Whiting Petroleum CorporationEric K. Hagen,
303-837-1661Vice President, Investor
RelationsEric.Hagen@whiting.com
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