Whiting Petroleum Corporation Enters into Sales Agreements for North Dakota Midstream Assets
November 21 2016 - 4:15PM
Business Wire
Whiting Petroleum Corporation (NYSE: WLL) today announced
that it has entered into purchase and sale agreements to sell its
50 percent interest in its Robinson Lake natural gas processing
plant and associated natural gas gathering system located in
Mountrail County, North Dakota and its 50 percent interest in its
Belfield natural gas processing plant and associated natural gas,
crude oil and water gathering systems located in Stark, Billings
and Dunn Counties, North Dakota. From April through September 2016,
these plants had average daily throughput of 132 MMcf per day.
An affiliate of Tesoro Logistics Rockies, LLC, has agreed to
purchase the assets for $700 million, pending regulatory approval.
Whiting’s share of the sale price would be approximately $375
million. The transaction is expected to close in the first quarter
of 2017.
James J. Volker, Whiting's Chairman, President and CEO,
commented, "We expect this sale to further strengthen our balance
sheet and provide us with additional financial flexibility to
invest for growth in Whiting’s top tier producing assets in the
Williston and DJ Basins. This sale aligns with our ongoing strategy
to divest non-core midstream assets and focus capital in the
company’s highly productive upstream business."
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 described
under the caption “Risk Factors” in our Quarterly Report on Form
10-Q for the period ended September 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161121006087/en/
Whiting PetroleumEric K. Hagen, 303-837-1661Vice
President, Investor RelationsEric.Hagen@whiting.com
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