Whiting Petroleum Announces 2021 Capital, Operating Costs and Production Guidance
January 05 2021 - 4:01PM
Business Wire
Whiting Petroleum Corporation (NYSE: WLL) (“Whiting” or the
“Company”) today announced its 2021 capital, operating costs and
production guidance, reflecting an operating plan focused on
delivering sustainable free cash flow.
2021 Guidance Highlights
- Forecasted annual oil production of 50 MBO per day, 85 MBOE per
day at the mid-point
- Estimated capital expenditures of $240 million
- Plan to drill 37 gross (24.0 net) operated wells; turn-in-line
56 gross (36.8 net) operated wells, including 39 gross (23.6 net)
operated drilled uncompleted wells carried over from 2020.
Commenting on the operational plan, Lynn A. Peterson, President
and CEO of Whiting, said “We believe Whiting is well positioned
financially and operationally as we enter 2021. We exited 2020 with
$360 million of revolver debt, providing $390 million of liquidity.
With this 2021 capital program we anticipate holding production
flat on an annual average, as compared to our 2020 exit levels. We
have protected our capital program by hedging the prices of
approximately 60% of our expected crude oil volumes. With
additional contractual arrangements, we’ve taken steps to further
mitigate the potential for wider differentials in the Williston
Basin while ensuring flow of our crude oil production. We expect
2021 wellhead deducts for oil to be similar compared to what we
realized in the second half of 2020 with potential variability
resulting from possible transportation disruptions. The 2021
program is designed to generate significant free cash flow, which
will be used to pay down revolver debt and provide liquidity to
look for opportunities.”
Commenting on Whiting’s anticipated pay-for-performance
framework, Mr. Peterson added “we continue to make changes to our
compensation structure with the goal of aligning our executive pay
with shareholder interests. Our variable compensation will be
heavily performance weighted and equity will comprise a larger part
of the total compensation package.”
Outlook for Full-Year
2021
The following table provides guidance for the full-year 2021
based on current forecasts.
Full-Year Guidance
2021
Production (MBOE per day)
82 - 88
Oil production (MBO per day)
48 - 52
Capital expenditures (MM)
$ 228 - $ 252
Lease operating expense (MM)
$ 220 - $ 245
General and administrative cash expense
(MM)
$ 48 - $ 52
Virtual Conference Participation and
Updated Investor Presentation
Whiting will be hosting 1x1 sessions with investors at the
Goldman Sachs Global Energy Conference held virtually on January 6,
2020. 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.”
About Whiting Petroleum
Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an
independent oil and gas company engaged in the development,
production and acquisition of crude oil, NGLs and natural gas
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:
risks associated with our emergence from the chapter 11 bankruptcy;
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,
our ability to comply with debt covenants, periodic
redeterminations of the borrowing base under the our credit
agreement and our ability to generate sufficient cash flows from
operations to service our indebtedness; 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;
negative impacts from outbreaks of communicable diseases, including
the COVID-19 pandemic; our inability to access oil and gas markets
due to market conditions or operational impediments, including any
court rulings which may result in the inability to transport oil on
the Dakota Access Pipeline; negative impacts from litigation and
legal proceedings, including ongoing claims in connection with the
chapter 11 bankruptcy; the impact of negative shifts in investor
sentiment towards the oil and gas industry; impacts resulting from
the allocation of resources among our strategic opportunities; the
geographic concentration of our operations; impacts to financial
statements as a result of impairment write-downs and other cash and
noncash charges; federal and state initiatives relating to the
regulation of hydraulic fracturing and air emissions; revisions to
reserve estimates as a result of changes in commodity prices,
regulation and other factors; inaccuracies of our reserve estimates
or our assumptions underlying them; the timing of our exploration
and development expenditures; risks relating to decreases in our
credit rating; market availability of, and risks associated with,
transport of oil and gas; our ability to successfully complete
asset dispositions and the risks related thereto; 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;
weakened differentials impacting the price we receive for oil and
natural gas; risks relating to any unforeseen liabilities of ours;
the impacts of hedging on our results of operations; adverse
weather conditions that may negatively impact development or
production activities; uninsured or underinsured losses resulting
from our oil and gas operations; lack of control over non-operated
properties; failure of our properties to yield oil or gas in
commercially viable quantities; the impact and costs of compliance
with laws and regulations governing our oil and gas operations; the
potential impact of changes in laws that could have a negative
effect on the oil and gas industry; impacts of local regulations,
climate change issues, negative public perception of our industry
and corporate governance standards; our ability to replace our oil
and natural gas reserves; unforeseen underperformance of or
liabilities associated with acquired properties or other strategic
partnerships or investments; competition in the oil and gas
industry; any loss of our senior management or technical personnel;
cybersecurity attacks or failures of our telecommunication and
other information technology infrastructure; and other risks
described under the caption “Risk Factors” in Item 1A of our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2020 and our Annual Report on Form 10‑K for the period ended
December 31, 2019. 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: https://www.businesswire.com/news/home/20210105005919/en/
Brandon Day Investor Relations Manager 303‑837‑1661
Brandond@whiting.com
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