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 IPPer
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
CORPORATIONCONDENSED 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
CORPORATIONCONDENSED 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
CORPORATIONCONDENSED 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
CORPORATIONReconciliation of Net Loss Attributable to Common
Shareholders toAdjusted 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
CORPORATIONReconciliation 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/
Whiting Petroleum CorporationEric K. Hagen,
303-837-1661Vice President, Investor
RelationsEric.Hagen@whiting.com
Whiting Petroleum (NYSE:WLL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Whiting Petroleum (NYSE:WLL)
Historical Stock Chart
From Apr 2023 to Apr 2024