- Q2 2017 Average Production of
112,660 BOE/d
- Revising Capital Budget to $950
Million; Forecast 14% Q1 to Q4 2017 Production Growth
- New Enhanced Completions in Williams
County Exceeding 1.0 MMBOE Type Curve
- 69 Enhanced Completion Wells Drilled
Across Williston Basin Since January 2016 Exceeding 1.0 MMBOE Type
Curve
- Q2 2017 DD&A per BOE below Low
End of Guidance; All Other Metrics within Guidance
- Mid-Year Proved Reserves Grew 23%
from Year-End Levels to 755 MMBOE as of June 30, 2017
Whiting’s (NYSE: WLL) production in the second quarter
2017 totaled 10.3 million barrels of oil equivalent (MMBOE),
comprised of 83% crude oil/natural gas liquids (NGLs). Second
quarter 2017 production averaged 112,660 barrels of oil equivalent
per day (BOE/d). 10 out of 22 wells completed during the quarter
commenced production in June. The production benefit of these wells
is expected to be experienced mainly during the second half of
2017. Whiting’s depreciation, depletion and amortization (DD&A)
rate of $21.46 per BOE came in below the low end of guidance for
$22.25 – $23.25 per BOE. This reflects the impact of strong reserve
bookings in the Williston Basin area where the Company recorded a
59 MMBOE increase in proved reserves from upward performance
revisions, extensions and discoveries. All other metrics were
within guidance.
James J. Volker, Whiting’s Chairman, President and CEO,
commented, “One of our priorities is to maintain a strong balance
sheet while delivering high returns and sustainable growth to
investors. We plan to reduce capital spending to $950 million while
achieving 14% production growth from first quarter to fourth
quarter 2017. This is a testament to the high quality of our asset
base, which is also evident in the strong 23% growth in proved
reserves from year-end 2016 levels. A large component of this
growth was driven by the effect of enhanced completions in the
Williston Basin.”
Mr. Volker continued, “We continue to bring on enhanced
completion wells in the Williston Basin with production profiles in
the 1-1.5 MMBOE type curve range. These wells deliver strong rates
of return, even at a $40 NYMEX oil price. In summary, the steps we
took to strengthen our balance sheet and improve well productivity
through enhanced completions empowers us to deliver strong growth
at current commodity prices.”
Operating and Financial
Results
The following table summarizes the operating and financial
results for the second quarter of 2017 and 2016, including non-cash
charges recorded during those periods:
Three Months Ended June
30, 2017 2016 Production (MBOE/d)
(1) 112.66 134.24 Net cash provided by operating activities-MM $
111.0 $ 161.0 Discretionary cash flow-MM (2) $ 139.3 $ 151.6
Realized price ($/BOE) $ 30.83 $ 30.39 Total operating revenues-MM
$ 311.5 $ 337.0 Net loss attributable to common shareholders-MM (3)
$ (66.0 ) $ (301.0 ) Per basic share $ (0.18 ) $ (1.33 ) Per
diluted share $ (0.18 ) $ (1.33 ) Adjusted net loss
attributable to common shareholders-MM (4) $ (65.3 ) $ (158.7 ) Per
basic share $ (0.18 ) $ (0.70 ) Per diluted share $ (0.18 ) $ (0.70
) (1) Second quarter 2016 includes 8,920 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) Net loss
attributable to common shareholders includes $16 million of
pre-tax, non-cash derivative gains and $31 million of pre-tax,
non-cash derivative losses for the three months ended June 30, 2017
and 2016, respectively. (4) 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 first six months operating
and financial results for 2017 and 2016, including non-cash charges
recorded during those periods:
Six Months Ended June 30,
2017 2016 Production (MBOE/d) (1)
115.00 140.51 Net cash provided by operating activities-MM $ 191.1
$ 206.9 Discretionary cash flow-MM (2) $ 321.9 $ 253.9 Realized
price ($/BOE) $ 33.10 $ 28.00 Total operating revenues-MM $ 682.8 $
626.7 Net loss attributable to common shareholders-MM (3) $ (152.9
) $ (472.8 ) Per basic share $ (0.42 ) $ (2.20 ) Per diluted share
$ (0.42 ) $ (2.20 ) Adjusted net loss attributable to common
shareholders-MM (4) $ (119.5 ) $ (333.0 ) Per basic share $ (0.33 )
$ (1.55 ) Per diluted share $ (0.33 ) $ (1.55 ) (1) The six
months ended June 30, 2016 includes 9,070 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) Net loss attributable to
common shareholders includes $22 million and $91 million of
pre-tax, non-cash derivative losses for the six months ended June
30, 2017 and 2016, respectively. (4) A reconciliation of net loss
attributable to common shareholders to adjusted net loss
attributable to common shareholders is included later in this news
release.
Adjusting Capital Budget to $950
Million; Project 14% Production Growth Q1 to Q4 2017
Whiting is revising its capital budget and production guidance.
The Company’s new capital budget of $950 million allocates $518
million to the Williston Basin area, $332 million to the DJ Basin
area, $62 million to non-operated activity and $38 million to
exploration, facilities and land. Whiting plans to drop two rigs,
one in the Williston Basin and one in the DJ Basin, and run a
four-rig program (all Williston Basin) through year-end.
The Company plans to put 82 wells on production in the Redtail
area in the third and fourth quarters and anticipates an inventory
of 38 DUC (drilled uncompleted) wells at year-end. In the Williston
Basin, Whiting plans to put 54 wells on production in the third and
fourth quarters and anticipates an inventory of 55 DUC wells at
year-end. The Company’s new production guidance forecasts full-year
average production of 43.6 - 44.3 MMBOE (119,450 - 121,370 BOE/d).
At the midpoint of guidance, Whiting projects third quarter average
volumes of approximately 118.0 MBOE/d and fourth quarter volumes of
approximately 133.5 MBOE/d. The fourth quarter rate represents a
14% production increase relative to first quarter levels.
Proved Reserves Grew 23% to 755 MMBOE
from Year-End Levels
As of June 30, 2017, Whiting’s proved reserves are estimated at
755 MMBOE, a 23% increase from year-end 2016 levels of 616 MMBOE.
The mid-year reserve estimate was audited by the Company’s
third-party reservoir engineering firm Cawley, Gillespie &
Associates.
Whiting Receives $35 Million for North
Ward Estes Oil Price Contingent Payment Agreement
In July 2016, Whiting completed the sale of its interest in the
North Ward Estes field and associated assets located in Ward and
Winkler Counties, Texas. In addition to the $300 million cash
purchase price, the buyer agreed to pay Whiting $100,000 for every
one cent ($0.01) that the average of the NYMEX WTI crude oil
futures contract price for the period of August 2018 through July
2021 is above $50.00/Bbl on June 28, 2018. On July 19, 2017, the
buyer made a $35 million cash payment to Whiting to settle this
contingent feature. The contract settlement amount would have been
$4.2 million based on the NYMEX forward strip pricing for crude oil
as of July 19, 2017.
Operations Update
Whiting controls 743,667 gross (449,857 net) acres in the
Williston Basin and 159,994 gross (134,771 net) acres at its
Redtail Niobrara/Codell play in the DJ Basin. In the second quarter
2017, total net production for the Company averaged 112,660 BOE/d.
The Bakken/Three Forks play in the Williston Basin averaged 105,475
BOE/d. The Redtail Niobrara/Codell play in the DJ Basin averaged
6,610 BOE/d.
New Williston Basin Enhanced Completions in Williams County
Tracking above 1.0 MMBOE Type Curve. In June 2017, Whiting
completed its three-well Evitt 14-12 pad and its three-well Evitt
34-12 pad in Williams County, North Dakota. The wells are located
in the southeastern portion of Whiting’s Williams County acreage.
The Evitt 14-12 pad was completed with an average of 9.3 million
pounds of sand per well and averaged 37 stages. The Evitt 34-12 pad
was completed with an average of 10.1 million pounds of sand per
well and averaged 42 stages. On average, the two pads are tracking
above a 1.0 MMBOE type curve. In April, Whiting completed two
enhanced completion wells on its Northern 31-30 pad, which is
located approximately 15 miles northwest of the Evitt pads. The two
wells were completed with an average of 11.6 million pounds of sand
per well and 43 stages and are tracking above a 1.0 MMBOE type
curve. Whiting estimates it has approximately 1,650 gross future
drilling locations in Williams County.
69 Enhanced Completion Wells Drilled Across Williston Basin
Since January 2016 Exceeding 1.0 MMBOE Type Curve. Since
January 2016, Whiting has drilled 69 enhanced completion wells that
incorporate sand volumes of 7.0 million pounds or more per well,
additional stages and new diverter technology. On average, these
wells are producing above a 1.0 MMBOE type curve. The wells span
Dunn, McKenzie, Mountrail and Williams Counties. Within these
counties, the associated well pads are located across multiple
operating areas that bracket Whiting’s acreage position. The
Company believes this demonstrates the broad prospectivity of its
acreage for enhanced completions. Whiting estimates it has
approximately 4,500 gross future drilling locations in Dunn,
McKenzie, Mountrail and Williams Counties.
Initial Enhanced Completion Results at DJ Basin Redtail Play
Outperforming. In June and July 2017, Whiting began flowing
back the seven-well Razor 12-H pad and the eight-well Razor 12-G
pad at its DJ Basin Redtail play in Weld County, Colorado. The pads
target the Niobrara “A,” “B” and “C” zones and Codell/Fort Hays
formations. The Razor 12-H pad is testing higher sand volumes. It
incorporated 8.0 million pounds of sand per well versus a typical
well design of 4.0 to 5.0 million pounds. Early results are
encouraging with the production profile of the 12-H pad
outperforming the offsetting 12-G pad that was completed with 5.0
million pounds of sand per well.
Other Financial and Operating
Results
The following table summarizes the Company’s net production and
commodity price realizations for the quarters ended June 30, 2017
and 2016:
Three Months Ended
June 30, 2017 2016 Change
Production
Oil (MMBbl) 6.91 8.72 (21 %) NGLs (MMBbl) 1.65 1.69 (3 %) Natural
gas (Bcf) 10.17 10.81 (6 %) Total equivalent (MMBOE) (1) 10.25
12.22 (16 %)
Average sales
price
Oil (per Bbl): Price received $ 40.12 $ 35.67 12 % Effect of crude
oil hedging (2) 0.66 3.93 Realized price $ 40.78 $
39.60 3 % Weighted average NYMEX price (per Bbl) (3) $ 48.32 $
45.57 6 %
NGLs (per Bbl):
Realized price $ 10.41 $ 9.17 14 %
Natural gas (per Mcf):
Realized price $ 1.68 $ 0.96 75 % Weighted average NYMEX price (per
MMBtu) (3) $ 3.09 $ 1.98 56 % (1) Second quarter 2016
includes 8,920 BOE/d from properties that have since been divested.
(2) Whiting received $5 million and $34 million in pre-tax cash
settlements on its crude oil hedges during the second quarter of
2017 and 2016, respectively. A summary of Whiting’s outstanding
hedges is included later in this news release. (3) Average NYMEX
prices weighted for monthly production volumes.
Second Quarter and First Half 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
Six Months Ended June 30, June 30, 2017
2016 2017 2016
(per BOE, except production) Production (MMBOE) 10.25 12.22
20.81 25.57 Sales price, net of hedging $ 30.83 $ 30.39 $
33.10 $ 28.00 Lease operating expense 8.41 8.61 8.49 8.59
Production tax 2.64 2.20 2.84 2.06 Cash general &
administrative 2.45 2.21 2.39 2.55 Exploration 0.62 0.85 0.60 1.21
Cash interest expense 3.93 5.00 3.88 4.76 Cash income tax benefit
(0.13 ) - (0.15 ) - $ 12.91 $
11.52 $ 15.05 $ 8.83
Second Quarter and First Half 2017
Completions and Expenditures Summary
The table below summarizes Whiting’s operated and non-operated
completion activity and capital expenditures for the three and six
months ended June 30, 2017.
Gross/Net Wells Completed
Total New %
Success CAPEX Producing Non-Producing
Wells Rate (in MM) Q2 17 22 / 10.4 - /
- 22 / 10.4 100% / 100% $ 234.7 (1)
6M 17 70 / 25.8 - / - 70
/ 25.8 100% / 100% $ 420.5 (2) (1) Includes $10 million for
non-operated drilling and completion, $10 million for land, and $2
million for facilities. (2) Includes $21 million for non-operated
drilling and completion, $12 million for land, and $3 million for
facilities.
Outlook for Third Quarter and Full-Year
2017
The following table provides guidance for the third quarter and
full-year 2017 based on current forecasts, including Whiting’s
full-year 2017 capital budget of $950 million:
Guidance Third Quarter
Full Year 2017
2017 Production (MMBOE) 10.5 - 11.1 43.6 - 44.3 Lease
operating expense per BOE $ 8.25 - $ 8.75 $ 8.25 - $ 8.75 General
and administrative expense per BOE $ 2.90 - $ 3.30 $ 2.90 - $ 3.10
Interest expense per BOE $ 4.40 - $ 4.80 $ 4.30 - $ 4.70
Depreciation, depletion and amortization per BOE $21.00 - $22.00
$21.50 - $22.10 Production taxes (% of sales revenue) 8.5% - 8.9%
8.5% - 8.9% Oil price differentials to NYMEX per Bbl (1) ($7.50) -
($8.50) ($7.50) - ($8.50) Gas price differential to NYMEX per Mcf
($1.00) - ($1.40) ($1.00) - ($1.40) (1) Does not include the
effects of NGLs.
Commodity Derivative
Contracts
Whiting is more than 64% hedged for the remainder of 2017 as a
percentage of June 2017 production.
The following summarizes Whiting’s crude oil hedges as of July
19, 2017:
Average
Weighted Average As a Percentage of
Derivative Hedge Contracted Crude NYMEX
Price June 2017 Instrument Period (Bbls
per Month) (per Bbl) Oil Production Three-way
collars (1) 2017 Q3 1,216,667 $35.00 - $45.21 -
$59.22 53.5% Q4 1,250,000 $35.00 - $45.20 - $58.95 55.0%
2018 Q1 350,000 $38.57 - $48.57 - $58.46 15.4% Q2 350,000
$38.57 - $48.57 - $58.46 15.4% Q3 350,000 $38.57 - $48.57 - $58.46
15.4% Q4 350,000 $38.57 - $48.57 - $58.46 15.4%
Collars
2017 Q3 250,000 $53.00 - $70.44 11.0% Q4 250,000 $53.00 -
$70.44 11.0% (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 Six Months Ended June 30, June
30, 2017 2016 2017 2016 Selected
operating statistics: Production Oil, MBbl 6,911 8,722
14,209 18,684 NGLs, MBbl 1,647 1,692 3,266 3,334 Natural gas, MMcf
10,166 10,813 20,039 21,327 Oil equivalents, MBOE(1) 10,252 12,216
20,814 25,572
Average prices Oil per Bbl (excludes hedging)
$ 40.12 $ 35.67 $ 42.07 $ 31.09 NGLs per Bbl $ 10.41 $ 9.17 $ 14.02
$ 7.35 Natural gas per Mcf $ 1.68 $ 0.96 $ 1.96 $ 1.00
Per BOE
data Sales price (including hedging) $ 30.83 $ 30.39 $ 33.10 $
28.00 Lease operating $ 8.41 $ 8.61 $ 8.49 $ 8.59 Production taxes
$ 2.64 $ 2.20 $ 2.84 $ 2.06 Depreciation, depletion and
amortization $ 21.46 $ 24.89 $ 22.12 $ 24.10 General and
administrative $ 3.12 $ 2.74 $ 3.01 $ 3.06
Selected financial
data: (In thousands, except per share data) Total
operating revenues $ 311,515 $ 337,036 $ 682,832 $ 626,733 Total
operating expenses $ 368,229 $ 490,646 $ 817,052 $ 1,026,374 Total
other expense, net $ (47,494 ) $ (257,420 ) $ (96,435 ) $ (248,313
) Net loss attributable to common shareholders $ (65,981 ) $
(301,041 ) $ (152,938 ) $ (472,789 ) Loss per common share, basic $
(0.18 ) $ (1.33 ) $ (0.42 ) $ (2.20 ) Loss per common share,
diluted $ (0.18 ) $ (1.33 ) $ (0.42 ) $ (2.20 )
Weighted average shares outstanding,
basic
362,734 226,039 362,672 215,203 Weighted average shares
outstanding, diluted 362,734 226,039 362,672 215,203 Net cash
provided by operating activities $ 110,993 $ 160,986 $ 191,063 $
206,934 Net cash provided by (used in) investing activities $
(204,126 ) $ (96,698 ) $ 39,014 $ (356,961 ) Net cash provided by
(used in) financing activities $ 99,947 $ (50,011 ) $ (280,059 ) $
149,312 (1) The three and six months ended June 30, 2016
include 8,920 BOE/d and 9,070 BOE/d, respectively, from properties
that have since been divested.
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, 2017
to be filed with the Securities and Exchange Commission.
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED
BALANCE SHEETS (unaudited) (in thousands)
June 30, December
31, 2017 2016 ASSETS Current assets: Cash
and cash equivalents $ 23,243 $ 55,975 Restricted cash - 17,250
Accounts receivable trade, net 210,204 173,919 Derivative assets
26,964 - Prepaid expenses and other 30,727 26,312 Assets held for
sale(1) - 349,146 Total current assets
291,138 622,602 Property and equipment:
Oil and gas properties, successful efforts method 13,604,214
13,230,851 Other property and equipment 136,782
134,638 Total property and equipment 13,740,996
13,365,489 Less accumulated depreciation, depletion and
amortization (4,699,342 ) (4,222,071 ) Total property
and equipment, net 9,041,654 9,143,418
Other long-term assets 72,627 110,122
TOTAL ASSETS $ 9,405,419 $ 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.
WHITING PETROLEUM
CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited) (in thousands, except share and per share
data) June 30,
December 31, 2017 2016 LIABILITIES AND
EQUITY Current liabilities: Accounts payable trade $ 70,541 $
32,126 Revenues and royalties payable 130,495 147,226 Accrued
capital expenditures 95,499 56,830 Accrued interest 40,726 44,749
Accrued lease operating expenses 45,606 45,015 Accrued liabilities
and other 24,863 63,538 Taxes payable 20,447 39,547 Derivative
liabilities 23,616 17,628 Accrued employee compensation and
benefits 16,940 31,134 Liabilities related to assets held for sale
- 538 Total current liabilities 468,733
478,331 Long-term debt 3,274,807 3,535,303 Deferred income taxes
401,191 475,689 Asset retirement obligations 171,419 168,504 Other
long-term liabilities 93,162 69,123
Total liabilities 4,409,312 4,726,950
Commitments and contingencies Equity: Common stock, $0.001 par
value, 600,000,000 shares authorized; 368,133,400 issued and
362,793,720 outstanding as of June 30, 2017 and 367,174,542 issued
and 362,013,928 outstanding as of December 31, 2016 368 367
Additional paid-in capital 6,397,469 6,389,435 Accumulated deficit
(1,401,730 ) (1,248,572 ) Total Whiting shareholders'
equity 4,996,107 5,141,230 Noncontrolling interest -
7,962 Total equity 4,996,107
5,149,192
TOTAL LIABILITIES AND EQUITY $ 9,405,419
$ 9,876,142
WHITING PETROLEUM
CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) (in thousands, except per share data)
Three Months
Ended Six Months Ended June 30, June 30,
2017 2016 2017 2016 OPERATING
REVENUES Oil, NGL and natural gas sales $ 311,515 $ 337,036 $
682,832 $ 626,733
OPERATING EXPENSES Lease operating
expenses 86,269 105,172 176,662 219,548 Production taxes 27,066
26,826 59,122 52,753 Depreciation, depletion and amortization
220,035 304,016 460,442 616,308 Exploration and impairment 25,295
25,781 46,136 61,272 General and administrative 31,943 33,523
62,560 78,319 Derivative (gain) loss, net (20,163 ) (2,761 ) 16,414
2,000 Loss on sale of properties 1,024 1,861 2,298 3,795
Amortization of deferred gain on sale (3,240 ) (3,772
) (6,582 ) (7,621 ) Total operating expenses
368,229 490,646 817,052
1,026,374
LOSS FROM OPERATIONS (56,714 )
(153,610 ) (134,220 ) (399,641 )
OTHER INCOME
(EXPENSE) Interest expense (47,937 ) (78,660 ) (95,948 )
(160,567 ) Loss on extinguishment of debt - (179,396 ) (1,540 )
(88,777 ) Interest income and other 443 636
1,053 1,031 Total other expense
(47,494 ) (257,420 ) (96,435 ) (248,313
)
LOSS BEFORE INCOME TAXES (104,208 ) (411,030 )
(230,655 ) (647,954 )
INCOME TAX EXPENSE (BENEFIT)
Current (1,316 ) (1 ) (3,206 ) 2 Deferred (36,911 )
(109,983 ) (74,497 ) (175,152 ) Total income tax
benefit (38,227 ) (109,984 ) (77,703 )
(175,150 )
NET LOSS (65,981 ) (301,046 ) (152,952 )
(472,804 ) Net loss attributable to noncontrolling interests
- 5 14 15
NET LOSS ATTRIBUTABLE TO COMMON
SHAREHOLDERS
$ (65,981 ) $ (301,041 ) $ (152,938 ) $ (472,789 )
LOSS
PER COMMON SHARE Basic $ (0.18 ) $ (1.33 ) $ (0.42 ) $ (2.20 )
Diluted $ (0.18 ) $ (1.33 ) $ (0.42 ) $ (2.20 )
WEIGHTED AVERAGE
SHARES OUTSTANDING Basic 362,734 226,039
362,672 215,203 Diluted
362,734 226,039 362,672
215,203
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 Six
Months Ended June 30, June 30, 2017
2016 2017 2016 Net loss attributable to common
shareholders $ (65,981 ) $ (301,041 ) $ (152,938 ) $ (472,789 )
Adjustments: Amortization of deferred gain on sale (3,240 ) (3,772
) (6,582 ) (7,621 ) Loss on sale of properties 1,024 1,861 2,298
3,795 Impairment expense 18,943 15,388 33,646 30,360 Penalties for
early termination of drilling rig contracts - 2,257 - 15,944 Loss
on extinguishment of debt - 179,396 1,540 88,777 Total measure of
derivative (gain) loss reported under U.S. GAAP (20,163 ) (2,761 )
16,414 2,000 Total net cash settlements received on commodity
derivatives during the period 4,588 34,253 6,058 89,414 Tax impact
of adjustments above (429 ) (84,304 ) (19,908
) (82,833 ) Adjusted net loss attributable to common
shareholders(1) $ (65,258 ) $ (158,723 ) $ (119,472 ) $ (332,953 )
Adjusted net loss attributable to common shareholders per
share, basic $ (0.18 ) $ (0.70 ) $ (0.33 ) $ (1.55 ) Adjusted net
loss attributable to common shareholders per share, diluted $ (0.18
) $ (0.70 ) $ (0.33 ) $ (1.55 ) (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.
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, 2017 2016 2017
2016 Net cash provided by operating activities $ 110,993 $
160,986 $ 191,063 $ 206,934 Exploration 6,352 10,393 12,490 30,912
Changes in working capital 22,003 (19,731 )
118,384 16,095 Discretionary cash flow (1) $ 139,348 $
151,648 $ 321,937 $ 253,941 (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
27, 2017 at 11:00 a.m. ET (10:00 a.m. CT, 9:00 a.m. MT) to discuss
Whiting’s second 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/10109215.
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 27, 2017 and continuing through
Thursday, August 3, 2017. 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 10109213. 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/20170726006213/en/
Whiting Petroleum CorporationEric K. Hagen,
303-837-1661Vice President, Investor
RelationsEric.Hagen@whiting.com
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