Whiting Petroleum Corporation Announces Fourth Quarter and Full-Year 2018 Financial and Operating Results
-
Full Year 2018 Daily Production Averaged 127,980 BOE/d, an 8%
increase Year-Over-Year -
2018 Net Cash Provided by Operating Activities Totaled $1,092
Million and 2018 Free Cash Flow Totaled $280 Million -
2018 Full Year LOE and G&T, G&A and DD&A Expense per BOE Decreased
10%, 8% and 24% from 2017 Levels -
Q4 2018 Daily Oil Production Averaged 88,645 Bbl/d, a 3% increase
over Third Quarter 2018 -
Optimized Completions Deliver Strong Performance across Expanding
Core -
2019 Capital Budget of $800-$840 million Forecast to Grow Operated
Williston Basin Total Production 11% and Oil Production 15%
Year-Over-Year
DENVER–(BUSINESS WIRE)–Whiting’s (NYSE: WLL) production in the fourth quarter 2018
totaled 11.96 million barrels of oil equivalent (MMBOE), an average of
129,960 barrels of oil equivalent per day (BOE/d). Crude oil and natural
gas liquids (NGLs) comprised 68% and 15% of total production. Oil
production for the quarter was consistent with Company expectations.
Natural gas and natural gas liquids production were reduced by
third-party gathering delays and gas processing curtailments.
During the quarter Whiting continued its trend of free cash flow
generation, producing $285 million of net cash provided by operating
activities and $19 million in free cash flow despite lower crude prices
and higher oil differentials. Oil differentials significantly increased
in December, which accounts for the difference in realized differentials
versus Company guidance. Oil differentials have normalized as reflected
in Company guidance.
Operating and Financial Results
The following table summarizes the operating and financial results for
the fourth quarter of 2018 and 2017, including non-cash charges recorded
during those periods:
Three Months Ended | ||||||
December 31, | ||||||
2018 | 2017 | |||||
Production (MBOE/d) | 129.96 | 128.05 | ||||
Net cash provided by operating activities-MM | $ | 285.0 | $ | 286.7 | ||
Discretionary cash flow-MM (1) | $ | 253.0 | $ | 266.9 | ||
Realized price ($/BOE) | $ | 38.21 | $ | 40.07 | ||
Total operating revenues-MM | $ | 473.2 | $ | 474.4 | ||
Net income (loss) attributable to common shareholders-MM (2)(3) |
$ | 204.0 | $ | (798.3 | ) | |
Per basic share | $ | 2.24 | $ | (8.80 | ) | |
Per diluted share | $ | 2.22 | $ | (8.80 | ) | |
Adjusted net loss attributable to common shareholders-MM (4) | $ | (4.8 | ) | $ | (15.7 | ) |
Per basic share | $ | (0.05 | ) | $ | (0.17 | ) |
Per diluted share | $ | (0.05 | ) | $ | (0.17 | ) |
____________________ |
|
(1) |
A reconciliation of net cash provided by operating activities to discretionary cash flow is included later in this news release. |
(2) |
For the three months ended December 31, 2017, this amount includes $835 million in pre-tax, non-cash 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 2018 period presented. |
(3) |
Net income (loss) attributable to common shareholders includes $176 million of pre-tax, non-cash derivative gains and $73 million of pre-tax, non-cash derivative losses for the three months ended December 31, 2018 and 2017, respectively. |
(4) |
A reconciliation of net income (loss) attributable to common shareholders to adjusted net income (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 2018 and 2017, including non-cash charges recorded during
those periods:
Year Ended | |||||
December 31, | |||||
2018 | 2017 | ||||
Production (MBOE/d) (1) | 127.98 | 118.12 | |||
Net cash provided by operating activities-MM | $ | 1,092.0 | $ | 577.1 | |
Discretionary cash flow-MM (2) | $ | 1,112.0 | $ | 736.7 | |
Realized price ($/BOE) | $ | 41.20 | $ | 34.55 | |
Total operating revenues-MM | $ | 2,081.4 | $ | 1,481.4 | |
Net income (loss) attributable to common shareholders-MM (3)(4)(5) |
$ | 342.5 | $ | (1,237.6 | ) |
Per basic share | $ | 3.77 | $ | (13.65 | ) |
Per diluted share | $ | 3.73 | $ | (13.65 | ) |
Adjusted net income (loss) attributable to common shareholders-MM (6) | $ | 200.0 | $ | (118.5 | ) |
Per basic share | $ | 2.20 | $ | (1.31 | ) |
Per diluted share | $ | 2.18 | $ | (1.31 | ) |
____________________ |
|
(1) |
The year ended December 31, 2017 includes 5,480 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 pre-tax, non-cash 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 2018 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 Fort Berthold Indian Reservation assets. |
(5) |
Net income (loss) attributable to common shareholders includes $140 million of pre-tax, non-cash derivative gains and $131 million of pre-tax, non-cash derivative losses for the years ended December 31, 2018 and 2017, respectively. |
(6) |
A reconciliation of net income (loss) attributable to common shareholders to adjusted net income (loss) attributable to common shareholders is included later in this news release. |
Bradley J. Holly, Whiting’s President, Chairman and CEO, commented,
“During 2018, we further strengthened our executive leadership,
reorganized our Williston Basin assets into three high performing teams
and led the way in adopting an E&P business model focused on capital
efficiency and free cash flow. We were one of the few E&P companies to
deliver significant free cash flow in 2018. As detailed later in the
release, our teams also led the way in expanding the core of the Bakken
by pioneering a proprietary optimized completion model.
“In 2019, we plan to build on our success and have adopted a right-sized
capital budget forecast to deliver 11% growth from our core asset with
capital efficiency similar to 2018. We have also added senior leadership
in key positions, which should further enhance our results in 2019. In
summary, we remain steadfast in our commitment to pursue a program that
can deliver growth from our core asset while maximizing returns and
optimizing free cash flow at the corporate level.”
2019 Capital Plan
In 2019, Whiting forecasts total capital expenditures of $820 million at
the midpoint of guidance. Drilling and completion capital expenditures
of $702 million comprise 86% of the total, which includes $40 million of
projected non-operated spending. Whiting plans to drill 132 gross wells,
complete 154 gross wells and put on production (POP) 146 gross wells
during the year as detailed in the following table.
Q1 2019 | Q2 2019 | Q3 2019 | Q4 2019 | Total | |
Drill | 38 | 31 | 32 | 31 | 132 |
Complete | 30 | 52 | 43 | 29 | 154 |
Put on Production | 12 | 58 | 45 | 31 | 146 |
In addition, Whiting plans to spend $118 million on primarily
infrastructure and land projects that support continued strong capital
efficiency into 2020 and beyond. Infrastructure capital includes
completion of the Ray gas processing plant that supports the Company’s
northern Williston Basin assets and expansion of its Sanish Field
gathering system in the eastern Williston Basin. $30 million has been
budgeted to target acreage acquisitions in the expanding core of the
Bakken.
Operations Update
Whiting continues as a leader in expanding the core of the Bakken.
During the fourth quarter 2018, Whiting’s northern asset team completed
two wells in its Cassandra area located in Williams County, North Dakota
utilizing its Generation 4.0 optimized completions. Over the first 60
days, cumulative production per well averaged 74 MBOE. This performance
represents a 170% increase from earlier generation offset wells Whiting
completed in the field. The wells were drilled and completed for an
average of $7 million per well. These wells expand core Bakken results
into northeastern Williams County and represent a multi-year drilling
program.
In its southern asset team area, Whiting plans to drill 17 wells in the
Foreman Butte area, located in McKenzie County, North Dakota. These will
further delineate the field and test well spacing. Results from offset
operators in the area continue to materially outperform earlier
generation wells. Whiting owns a 46% working interest in a third-party
well that was completed in September 2018. The well has produced over 90
MBOE (89% black oil) in its first 100 days. This is a 200% increase in
cumulative production over the average for all Bakken laterals over
5,000 ft acquired in the Foreman Butte acquisition. East of Foreman
Butte in the southern Hidden Bench area, Whiting completed the four-well
Stenehjem pad in the Bakken formation using Generation 5.0 completions.
All the wells are outperforming the previously disclosed Mallow and
Loken wells based on early time production data. The Stenehjem 44-7-2H
well, which has the most days on production, has produced over 25 MBbl
of black oil during its first 16 days on production.
Whiting’s eastern asset team continues to generate strong results from
its more established asset base. Wells completed using Generation 4.0
completions in our Pronghorn area in Billings County, North Dakota are
exhibiting much flatter production profiles than earlier wells. As a
result, recoveries are projected to increase approximately 15% relative
to prior generation wells. In addition, infill drilling results at our
Sanish Field in Mountrail County, North Dakota remain strong. Whiting’s
Pod 8 infill project tested downspacing in the northwestern area of the
Sanish field. On average, the four new Bakken wells are outperforming
the parent wells by 80% over the first 110 days on a cumulative
production per lateral foot basis. In 2019, the team plans to test
multiple new concepts at its Pod 9 project in Sanish. These include
section line wells located at the heel or toe of existing wells, one and
a half mile laterals, three-mile laterals, Three Forks infill wells and
Generation 5.0 completions.
Fourth Quarter 2018 Capital Expenditures Summary
During the fourth quarter 2018, Whiting’s capital expenditures totaled
$234 million. During the quarter, Whiting drilled 36 gross wells,
completed 20 gross wells and POP’d 41 gross wells. Capital expenditures
reflected additional Whiting operated activity and higher than projected
non-operated and infrastructure spending.
Other Financial and Operating Results
The following table summarizes the Company’s net production and
commodity price realizations for the quarters ended December 31, 2018
and 2017:
Three Months Ended | ||||||
December 31, | ||||||
2018 | 2017 | Change | ||||
Production |
||||||
Oil (MMBbl) | 8.16 | 8.00 | 2 | % | ||
NGLs (MMBbl) | 1.78 | 1.94 | (8 | %) | ||
Natural gas (Bcf) | 12.11 | 11.01 | 10 | % | ||
Total equivalent (MMBOE) | 11.96 | 11.78 | 2 | % | ||
Average sales price |
||||||
Oil (per Bbl): | ||||||
Price received | $ | 49.26 | $ | 51.15 | (4 | %) |
Effect of crude oil hedging (1) | (2.01 | ) | (0.29 | ) | ||
Realized price (2) | $ | 47.25 | $ | 50.86 | (7 | %) |
Weighted average NYMEX price (per Bbl) (3) | $ | 58.65 | $ | 55.36 | 6 | % |
NGLs (per Bbl): |
||||||
Realized price | $ | 22.21 | $ | 22.90 | (3 | %) |
Natural gas (per Mcf): |
||||||
Realized price | $ | 2.63 | $ | 1.87 | 41 | % |
Weighted average NYMEX price (per MMBtu) (3) | $ | 3.62 | $ | 2.87 | 26 | % |
____________________ |
|
(1) |
Whiting paid $16 million and $2 million in pre-tax cash settlements on its crude oil hedges during the fourth quarter of 2018 and 2017, respectively. A summary of Whiting’s outstanding hedges is included later in this news release. |
(2) |
Whiting’s realized prices were reduced by $1.47 per Bbl and $1.74 per Bbl in the fourth quarter of 2018 and 2017, respectively, due to the Redtail deficiency payment. The remaining contract ends in April 2020. |
(3) | Average NYMEX prices weighted for monthly production volumes. |
Fourth Quarter and Full-Year 2018 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, | |||||||
2018 | 2017 | 2018 | 2017 | |||||
(per BOE, except production) | ||||||||
Production (MMBOE) | 11.96 | 11.78 | 46.71 | 43.11 | ||||
Sales price, net of hedging | $ | 38.21 | $ | 40.07 | $ | 41.20 | $ | 34.55 |
Lease operating expense | 6.81 | 6.77 | 6.68 | 6.47 | ||||
Gathering, transportation, compression and other | 1.06 | 1.56 | 1.03 | 2.10 | ||||
Production and ad valorem tax | 3.16 | 3.25 | 3.68 | 2.80 | ||||
Cash general & administrative | 2.16 | 2.46 | 2.37 | 2.38 | ||||
Exploration | 0.51 | 1.43 | 0.47 | 0.84 | ||||
Cash interest expense | 3.36 | 3.28 | 3.57 | 3.70 | ||||
Cash income tax benefit | – | (0.08 | ) | – | (0.17 | ) | ||
$ | 21.15 | $ | 21.40 | $ | 23.40 | $ | 16.43 | |
Outlook for Full-Year 2019
The following table provides guidance for the full-year 2019 based on
current forecasts, including Whiting’s full-year 2019 capital budget of
$820 million at the midpoint of guidance:
Full Year Guidance 2019 | |
Production (MMBOE) | 46.7 – 47.7 |
Lease operating expense per BOE | $ 6.70 – $ 7.10 |
Gathering, transportation, compression and other per BOE | $ 0.95 – $ 1.15 |
General and administrative expense per BOE | $ 2.65 – $ 2.95 |
Interest expense per BOE | $ 3.90 – $ 4.30 |
Depreciation, depletion and amortization per BOE | $16.00 – $17.00 |
Production taxes (% of sales revenue) | 8.3% – 8.8% |
Oil price differential to NYMEX per Bbl (1) | ($4.75) – ($5.75) |
Gas price differential to NYMEX per Mcf | ($1.25) – ($1.75) |
____________________ |
|
(1) | Does not include the effects of NGLs. |
Commodity Derivative Contracts
Whiting is 40% and 31% hedged for the first and second halves of 2019,
respectively, as a percentage of December 2018 production.
The following summarizes Whiting’s crude oil hedges as of February 20,
2019:
Weighted Average | As a Percentage of | |||
Derivative | Hedge | Contracted Crude | NYMEX Price | December 2018 |
Instrument | Period | (Bbls per Month) | (Per Bbl) | Oil Production |
Swaps | Fixed Price | |||
Jul – Sep 2019 | 150,000 | $58.94 | 5.4% | |
Oct – Dec 2019 | 150,000 | $58.94 | 5.4% | |
Floor/Ceiling | ||||
Collars | Jan – Mar 2019 | 1,100,000 | $50.91 – $75.55 | 39.5% |
Apr – Jun 2019 | 1,100,000 | $50.91 – $75.55 | 39.5% | |
Jul – Sep 2019 | 700,000 | $51.64 – $77.32 | 25.2% | |
Oct – Dec 2019 | 700,000 | $51.64 – $77.32 | 25.2% | |
Selected Operating and Financial Statistics
Three Months Ended | Year Ended | ||||||||||
December 31, | December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Selected operating statistics: | |||||||||||
Production | |||||||||||
Oil, MBbl | 8,155 | 8,000 | 31,517 | 29,261 | |||||||
NGLs, MBbl | 1,784 | 1,945 | 7,394 | 6,977 | |||||||
Natural gas, MMcf | 12,106 | 11,012 | 46,810 | 41,262 | |||||||
Oil equivalents, MBOE (1) | 11,957 | 11,780 | 46,712 | 43,115 | |||||||
Average prices | |||||||||||
Oil per Bbl (excludes hedging) | $ | 49.26 | $ | 51.15 | $ | 58.70 | $ | 44.30 | |||
NGLs per Bbl | $ | 22.21 | $ | 22.90 | $ | 20.78 | $ | 16.00 | |||
Natural gas per Mcf | $ | 2.63 | $ | 1.87 | $ | 1.66 | $ | 1.78 | |||
Per BOE data | |||||||||||
Sales price (including hedging) | $ | 38.21 | $ | 40.07 | $ | 41.20 | $ | 34.55 | |||
Lease operating | $ | 6.81 | $ | 6.77 | $ | 6.68 | $ | 6.47 | |||
Gathering, transportation, compression and other | $ | 1.06 | $ | 1.56 | $ | 1.03 | $ | 2.10 | |||
Production and ad valorem taxes | $ | 3.16 | $ | 3.25 | $ | 3.68 | $ | 2.80 | |||
Depreciation, depletion and amortization | $ | 16.49 | $ | 23.40 | $ | 16.73 | $ | 22.01 | |||
General and administrative | $ | 2.36 | $ | 2.69 | $ | 2.64 | $ | 2.88 | |||
Selected financial data: | |||||||||||
(In thousands, except per share data) | |||||||||||
Total operating revenues | $ | 473,233 | $ | 474,412 | $ | 2,081,414 | $ | 1,481,435 | |||
Total operating expenses | $ | 220,680 | $ | 1,388,567 | $ | 1,511,535 | $ | 3,010,764 | |||
Total other expense, net | $ | 47,218 | $ | 47,101 | $ | 226,012 | $ | 191,312 | |||
Net income (loss) attributable to common shareholders | $ | 203,962 | $ | (798,278 | ) | $ | 342,494 | $ | (1,237,648 | ) | |
Income (loss) per common share, basic | $ | 2.24 | $ | (8.80 | ) | $ | 3.77 | $ | (13.65 | ) | |
Income (loss) per common share, diluted | $ | 2.22 | $ | (8.80 | ) | $ | 3.73 | $ | (13.65 | ) | |
Weighted average shares outstanding, basic | 91,011 | 90,699 | 90,953 | 90,683 | |||||||
Weighted average shares outstanding, diluted | 91,778 | 90,699 | 91,869 | 90,683 | |||||||
Net cash provided by operating activities |
$ | 284,967 | $ | 286,703 | $ | 1,092,003 | $ | 577,109 | |||
Net cash provided by (used in) investing activities | $ | (235,622 | ) | $ | (204,203 | ) | $ | (953,054 | ) | $ | 73,397 |
Net cash provided by (used in) financing activities | $ | (49,925 | ) | $ | 785,707 | $ | (1,004,721 | ) | $ | 155,648 |
____________________ |
|
(1) |
The year ended December 31, 2017 includes 5,480 BOE/d 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 Annual Report on
Form 10-K for the year ended December 31, 2018 to be filed with the
Securities and Exchange Commission.
WHITING PETROLEUM CORPORATION | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||
(in thousands) | ||||
December 31, | ||||
2018 | 2017 | |||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 13,607 | $ | 879,379 |
Accounts receivable trade, net | 294,468 | 284,214 | ||
Derivative assets | 68,342 | – | ||
Prepaid expenses and other | 22,009 | 26,035 | ||
Total current assets | 398,426 | 1,189,628 | ||
Property and equipment: | ||||
Oil and gas properties, successful efforts method | 12,195,659 | 11,293,650 | ||
Other property and equipment | 134,212 | 134,524 | ||
Total property and equipment | 12,329,871 | 11,428,174 | ||
Less accumulated depreciation, depletion and amortization | (5,003,509 | ) | (4,244,735 | ) |
Total property and equipment, net | 7,326,362 | 7,183,439 | ||
Other long-term assets | 34,785 | 29,967 | ||
TOTAL ASSETS | $ | 7,759,573 | $ | 8,403,034 |
(Continued) | ||||
WHITING PETROLEUM CORPORATION | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) | ||||
(in thousands) | ||||
December 31, | ||||
2018 | 2017 | |||
LIABILITIES AND EQUITY | ||||
Current liabilities: | ||||
Current portion of long-term debt | $ | – | $ | 958,713 |
Accounts payable trade | 42,520 | 32,761 | ||
Revenues and royalties payable | 228,284 | 171,028 | ||
Accrued capital expenditures | 73,178 | 69,744 | ||
Accrued interest | 55,080 | 40,971 | ||
Accrued lease operating expenses | 37,499 | 36,865 | ||
Accrued liabilities and other | 33,872 | 51,590 | ||
Taxes payable | 31,357 | 28,771 | ||
Derivative liabilities | – | 132,525 | ||
Accrued employee compensation and benefits | 35,141 | 30,360 | ||
Total current liabilities | 536,931 | 1,553,328 | ||
Long-term debt | 2,792,321 | 2,764,716 | ||
Deferred income taxes | 1,373 | – | ||
Asset retirement obligations | 131,544 | 129,206 | ||
Other long-term liabilities | 27,088 | 36,642 | ||
Total liabilities | 3,489,257 | 4,483,892 | ||
Commitments and contingencies | ||||
Equity: | ||||
Common stock, $0.001 par value, 225,000,000 shares authorized; |
92 | 92 | ||
Additional paid-in capital | 6,414,170 | 6,405,490 | ||
Accumulated deficit | (2,143,946 | ) | (2,486,440 | ) |
Total equity | 4,270,316 | 3,919,142 | ||
TOTAL LIABILITIES AND EQUITY | $ | 7,759,573 | $ | 8,403,034 |
(Concluded) | ||||
WHITING PETROLEUM CORPORATION | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||
(in thousands, except per share data) | ||||||||||
Three Months Ended | Year Ended | |||||||||
December 31, | December 31, | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
OPERATING REVENUES | ||||||||||
Oil, NGL and natural gas sales | $ | 473,233 | $ | 474,412 | $ | 2,081,414 | $ | 1,481,435 | ||
OPERATING EXPENSES |
||||||||||
Lease operating expenses | 81,461 | 79,751 | 311,895 | 278,919 | ||||||
Gathering, transportation, compression and other | 12,655 | 18,419 | 48,105 | 90,574 | ||||||
Production and ad valorem taxes | 37,832 | 38,295 | 171,823 | 120,870 | ||||||
Depreciation, depletion and amortization | 197,110 | 275,651 | 781,329 | 948,939 | ||||||
Exploration and impairment | 25,816 | 872,384 | 67,368 | 936,177 | ||||||
General and administrative | 28,268 | 31,644 | 123,250 | 124,288 | ||||||
Derivative (gain) loss, net | (160,040 | ) | 75,566 | 17,170 | 122,847 | |||||
Loss on sale of properties | 233 | 63 | 1,949 | 401,113 | ||||||
Amortization of deferred gain on sale | (2,655 | ) | (3,206 | ) | (11,354 | ) | (12,963 | ) | ||
Total operating expenses | 220,680 | 1,388,567 | 1,511,535 | 3,010,764 | ||||||
INCOME (LOSS) FROM OPERATIONS |
252,553 | (914,155 | ) | 569,879 | (1,529,329 | ) | ||||
OTHER INCOME (EXPENSE) |
||||||||||
Interest expense | (47,916 | ) | (47,447 | ) | (197,474 | ) | (191,088 | ) | ||
Loss on extinguishment of debt | – | – | (31,968 | ) | (1,540 | ) | ||||
Interest income and other | 698 | 346 | 3,430 | 1,316 | ||||||
Total other expense | (47,218 | ) | (47,101 | ) | (226,012 | ) | (191,312 | ) | ||
INCOME (LOSS) BEFORE INCOME TAXES |
205,335 | (961,256 | ) | 343,867 | (1,720,641 | ) | ||||
INCOME TAX EXPENSE (BENEFIT) |
||||||||||
Current | – | (924 | ) | – | (7,291 | ) | ||||
Deferred | 1,373 | (162,054 | ) | 1,373 | (475,688 | ) | ||||
Total income tax expense (benefit) | 1,373 | (162,978 | ) | 1,373 | (482,979 | ) | ||||
NET INCOME (LOSS) |
203,962 | (798,278 | ) | 342,494 | (1,237,662 | ) | ||||
Net loss attributable to noncontrolling interests | – | – | – | 14 | ||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
$ | 203,962 | $ | (798,278 | ) | $ | 342,494 | $ | (1,237,648 | ) |
INCOME (LOSS) PER COMMON SHARE |
||||||||||
Basic | $ | 2.24 | $ | (8.80 | ) | $ | 3.77 | $ | (13.65 | ) |
Diluted | $ | 2.22 | $ | (8.80 | ) | $ | 3.73 | $ | (13.65 | ) |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||||||||
Basic | 91,011 | 90,699 | 90,953 | 90,683 | ||||||
Diluted | 91,778 | 90,699 | 91,869 | 90,683 | ||||||
WHITING PETROLEUM CORPORATION | |||||||||||
Reconciliation of Net Income (Loss) Attributable to Common Shareholders to |
|||||||||||
Adjusted Net Income (Loss) Attributable to Common Shareholders | |||||||||||
(in thousands, except per share data) | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 31, | December 31, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Net income (loss) attributable to common shareholders | $ | 203,962 | $ | (798,278 | ) | $ | 342,494 | $ | (1,237,648 | ) | |
Adjustments: | |||||||||||
Amortization of deferred gain on sale | (2,655 | ) | (3,206 | ) | (11,354 | ) | (12,963 | ) | |||
Loss on sale of properties | 233 | 63 | 1,949 | 401,113 | |||||||
Impairment expense | 19,676 | 855,583 | 45,288 | 899,853 | |||||||
Loss on extinguishment of debt | – | – | 31,968 | 1,540 | |||||||
Total measure of derivative (gain) loss reported under U.S. GAAP | (160,040 | ) | 75,566 | 17,170 | 122,847 | ||||||
Total net cash settlements received (paid) on commodity derivatives during the period |
(16,376 | ) | (2,374 | ) | (157,001 | ) | 8,282 | ||||
Tax impact of adjustments above | 38,135 | (220,299 | ) | 17,247 | (338,119 | ) | |||||
Valuation allowance on deferred tax assets | (87,774 | ) | 119,274 | (87,774 | ) | 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 |
– | – | – | (40,624 | ) | ||||||
Adjusted net income (loss) attributable to common shareholders (1) | $ | (4,839 | ) | $ | (15,704 | ) | $ | 199,987 | $ | (118,478 | ) |
Adjusted net income (loss) attributable to common shareholders per share, basic |
$ | (0.05 | ) | $ | (0.17 | ) | $ | 2.20 | $ | (1.31 | ) |
Adjusted net income (loss) attributable to common shareholders per share, diluted |
$ | (0.05 | ) | $ | (0.17 | ) | $ | 2.18 | $ | (1.31 | ) |
____________________ |
|
(1) |
Adjusted Net Income (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 Income (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 Income (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 and |
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Free Cash Flow | |||||||||
(in thousands) | |||||||||
Three Months Ended | Year Ended | ||||||||
December 31, | December 31, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Net cash provided by operating activities | $ | 284,967 | $ | 286,703 | $ | 1,092,003 | $ | 577,109 | |
Operating cash outflow for settlement of commodity derivative contract |
– | – | 61,036 | – | |||||
Exploration | 6,140 | 16,801 | 22,080 | 36,324 | |||||
Changes in working capital | (38,138 | ) | (36,621 | ) | (63,160 | ) | 123,253 | ||
Discretionary cash flow (1) | 252,969 | 266,883 | 1,111,959 | 736,686 | |||||
Capital expenditures | (234,351 | ) | (170,757 | ) | (832,023 | ) | (912,429 | ) | |
Free cash flow (1) | $ | 18,618 | $ | 96,126 | $ | 279,936 | $ | (175,743 | ) |
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(1) |
Discretionary cash flow and free cash flow are non-GAAP measures. Such measures are presented because management believes they provide useful information to investors for analysis of the Company’s ability to internally fund acquisitions, exploration and development. Such measures 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. |
Contacts
Whiting Petroleum Corporation
Eric K. Hagen
Title:
Senior Vice President, Investor Relations
Phone: 303-837-1661
Email:
[email protected]