Whiting Petroleum Reports Fourth Quarter and Full Year 2021 Results and Oil and Gas Reserves
Whiting Petroleum Corporation (NYSE: WLL) reported a strong performance for Q4 2021, posting revenue of $473 million and net income of $292 million ($7.34/share). For the full year, revenue reached $1.5 billion with net income of $428 million ($10.78/share). Adjusted free cash flow for Q4 was $156 million and $504 million for FY 2021. The company ended the year debt-free and increased its proved reserves by 25% to 326.0 million barrels of oil equivalent. Whiting plans to utilize its strong cash flow to fund operations and dividends, alongside growth strategies in the coming quarters.
- Q4 2021 revenue increased by $72 million compared to Q3 2021.
- Net income for Q4 was $292 million versus $198 million in Q3 2021.
- Adjusted free cash flow for FY 2021 was $504 million.
- Company ended 2021 completely debt-free.
- Proved reserves increased by 25% to 326.0 MMBOE.
- Lease operating expenses rose to $62 million in Q4 from $57 million in Q3 2021.
- General and administrative expenses increased to $15 million in Q4 from $12 million in Q3 2021.
Fourth Quarter 2021 Highlights
-
Revenue was
$473 million December 31, 2021 -
Net income (GAAP) was
$292 million $7.34 -
Adjusted net income (non-GAAP) was
$168 million $4.23 -
Adjusted EBITDAX (non-GAAP) was
$226 million -
Net cash provided by operating activities (GAAP) was
$214 million -
Adjusted free cash flow (non-GAAP) was
$156 million -
December 31, 2021 debt was$0
Fourth Quarter and Full Year 2021 Results
Revenue for the fourth quarter of 2021 increased
Net income for the fourth quarter of 2021 was
The Company’s adjusted EBITDAX (non-GAAP) for the fourth quarter of 2021 was
Adjusted net income, adjusted net income per share, adjusted EBITDAX and adjusted free cash flow are non-GAAP financial measures. Please refer to the end of this release for disclosures and reconciliations regarding these measures.
Production for the fourth quarter averaged 92.8 thousand barrels of oil equivalent per day (MBOE/d) which was consistent with the previous quarter of 92.1 MBOE/d. Oil production averaged 52.9 thousand barrels of oil per day (MBO/d) compared to 51.8 MBO/d in the third quarter 2021.
Capital expenditures in the fourth quarter of 2021 were
Lease operating expense (LOE) for the fourth quarter of 2021 was
Liquidity
As of
Proved Reserves
During 2021, the Company added 20.3 million barrels of oil equivalent (MMBOE) of reserves primarily due to successful drilling in the
The following table summarizes our estimated proved reserves as of
|
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Proved Reserves (1) |
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Pre-Tax |
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Natural |
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|
PV10% |
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Oil |
|
NGLs |
|
Gas |
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Total |
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% |
|
Value (2) |
|
Reserve Category |
|
(MMBbl) |
|
(MMBbl) |
|
(Bcf) |
|
(MMBOE) |
|
Oil |
|
(in millions) |
|
Proved developed reserves |
|
148.3 |
|
55.0 |
|
351.9 |
|
262.0 |
|
|
|
$ |
3,587 |
Proved undeveloped reserves |
|
40.3 |
|
11.4 |
|
74.1 |
|
64.0 |
|
|
|
|
794 |
Total proved reserves |
|
188.6 |
|
66.4 |
|
426.0 |
|
326.0 |
|
|
|
$ |
4,381 |
Discounted future income tax expense |
|
|
(702) |
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Standardized measure of discounted future net cash flows |
|
$ |
3,679 |
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(1) |
|
Oil and gas reserve quantities and related discounted future net cash flows have been derived from a WTI oil price of |
(2) |
|
Pre-tax PV10% may be considered a non-GAAP financial measure as defined by the |
Conference Call
Whiting will host a conference call on
To participate in this call please dial:
International Dial-in Number: (412) 317-5422
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=9BD9bizF
Replay Information:
Conference ID #: 4561404
Replay Dial-In (Toll Free): (877) 344-7529 (
Replay Dial-In (International): (412) 317-0088
Expiration Date:
Commodity Price Hedging
The Company uses commodity hedges in order to reduce the effects of commodity price volatility and to satisfy the requirements of its credit facility. The following table summarizes Whiting’s hedging positions as of
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Weighted Average |
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Settlement Period |
|
Index |
|
Derivative
|
|
Total Volumes |
|
Units |
|
Swap
|
|
Floor |
|
Ceiling |
Crude Oil |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 (1) |
|
NYMEX WTI |
|
Fixed Price Swaps |
|
2,761,000 |
|
Bbl |
|
|
|
- |
|
- |
2022 (1) |
|
NYMEX WTI |
|
Two-way Collars |
|
10,351,500 |
|
Bbl |
|
- |
|
|
|
|
Q1 2023 |
|
NYMEX WTI |
|
Fixed Price Swaps |
|
810,000 |
|
Bbl |
|
|
|
- |
|
- |
Q1-Q3 2023 |
|
NYMEX WTI |
|
Two-way Collars |
|
3,443,500 |
|
Bbl |
|
- |
|
|
|
|
|
|
|
|
Total |
|
17,366,000 |
|
|
|
|
|
|
|
|
Natural Gas |
|
|
|
|
|
|
|
|
|
|
|
|
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|
2022 (1) |
|
NYMEX Henry Hub |
|
Fixed Price Swaps |
|
10,816,500 |
|
MMBtu |
|
|
|
- |
|
- |
2022 (1) |
|
NYMEX Henry Hub |
|
Two-way Collars |
|
15,754,000 |
|
MMBtu |
|
- |
|
|
|
|
Q1 2023 |
|
NYMEX Henry Hub |
|
Fixed Price Swaps |
|
1,800,000 |
|
MMBtu |
|
|
|
- |
|
- |
Q1-Q3 2023 |
|
NYMEX Henry Hub |
|
Two-way Collars |
|
8,799,000 |
|
MMBtu |
|
- |
|
|
|
|
|
|
|
|
Total |
|
37,169,500 |
|
|
|
|
|
|
|
|
Natural Gas Basis (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 (1) |
|
NNG Ventura to NYMEX |
|
Fixed Price Swaps |
|
5,222,500 |
|
MMBtu |
|
|
|
- |
|
- |
Q1-Q2 2023 |
|
NNG Ventura to NYMEX |
|
Fixed Price Swaps |
|
5,920,000 |
|
MMBtu |
|
|
|
- |
|
- |
|
|
|
|
Total |
|
11,142,500 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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2022 (1) |
|
Mont Belvieu |
|
Fixed Price Swaps |
|
18,417,000 |
|
Gallons |
|
|
|
- |
|
- |
2022 (1) |
|
Conway |
|
Fixed Price Swaps |
|
56,112,000 |
|
Gallons |
|
|
|
- |
|
- |
|
|
|
|
Total |
|
74,529,000 |
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|
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(1) |
|
Includes settlement periods of February through |
(2) |
|
The weighted average price associated with the natural gas basis swaps shown in the table above represents the average fixed differential to NYMEX as stated in the related contracts, which is compared to the Northern Natural Gas Ventura Index (“NNG Ventura”) for each period. If NYMEX combined with the fixed differential as stated in each contract is higher than the NNG Ventura index price at any settlement date, the Company receives the difference. Conversely, if the NNG Ventura index price is higher than NYMEX combined with the fixed differential, the Company pays the difference. |
Selected Operating and Financial Statistics
References to “Successor” refer to Whiting and its financial position and results of operations after its emergence from reorganization under chapter 11 of the Bankruptcy Code. References to “Predecessor” refer to Whiting and its financial position and results of operations on or before the emergence date (
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Successor |
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Three Months Ended |
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2021 |
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2021 |
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Selected operating statistics: |
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Production |
|
|
|
|
|
|
||
Oil (MBbl) |
|
|
4,871 |
|
|
|
4,763 |
|
NGLs (MBbl) |
|
|
1,946 |
|
|
|
1,919 |
|
Natural gas (MMcf) |
|
|
10,303 |
|
|
|
10,745 |
|
Total production (MBOE) |
|
|
8,535 |
|
|
|
8,472 |
|
Average prices |
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Oil (per Bbl): |
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Price received |
|
$ |
75.75 |
|
|
$ |
66.54 |
|
Effect of crude oil hedging (1) |
|
|
(20.38 |
) |
|
|
(16.57 |
) |
Realized price |
|
$ |
55.37 |
|
|
$ |
49.97 |
|
Weighted average NYMEX price (per Bbl) (2) |
|
$ |
77.00 |
|
|
$ |
70.55 |
|
NGLs (per Bbl): |
|
|
|
|
|
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Price received |
|
$ |
28.74 |
|
|
$ |
26.81 |
|
Effect of NGL hedging (3) |
|
|
(2.08 |
) |
|
|
(1.93 |
) |
Realized price |
|
$ |
26.66 |
|
|
$ |
24.88 |
|
Natural gas (per Mcf): |
|
|
|
|
|
|
||
Price received |
|
$ |
3.68 |
|
|
$ |
2.42 |
|
Effect of natural gas hedging (4) |
|
|
(2.15 |
) |
|
|
(0.82 |
) |
Realized price |
|
$ |
1.53 |
|
|
$ |
1.60 |
|
Weighted average NYMEX price (per MMBtu) (2) |
|
$ |
5.13 |
|
|
$ |
3.95 |
|
Selected operating metrics: |
|
|
|
|
|
|
||
Sales price, net of hedging ($ per BOE) |
|
$ |
39.53 |
|
|
$ |
35.75 |
|
Lease operating ($ per BOE) |
|
|
7.31 |
|
|
|
6.68 |
|
Transportation, gathering, compression and other ($ per BOE) |
|
|
0.80 |
|
|
|
1.04 |
|
Depreciation, depletion and amortization ($ per BOE) |
|
|
5.76 |
|
|
|
6.13 |
|
General and administrative ($ per BOE) |
|
|
1.79 |
|
|
|
1.41 |
|
Production and ad valorem taxes (% of sales revenue) |
|
|
7 |
% |
|
|
7 |
% |
(1) |
|
Whiting paid |
(2) |
|
Average NYMEX prices weighted for monthly production volumes. |
(3) |
|
Whiting paid |
(4) |
|
Whiting paid |
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
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Year Ended
|
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Four Months
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Eight Months
|
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Combined
|
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Selected operating statistics: |
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|
||||
Production |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil (MBbl) |
|
|
19,316 |
|
|
|
6,857 |
|
|
|
|
15,273 |
|
|
|
22,130 |
|
NGLs (MBbl) |
|
|
7,218 |
|
|
|
2,104 |
|
|
|
|
4,522 |
|
|
|
6,626 |
|
Natural gas (MMcf) |
|
|
41,964 |
|
|
|
14,340 |
|
|
|
|
29,667 |
|
|
|
44,007 |
|
Total production (MBOE) |
|
|
33,528 |
|
|
|
11,351 |
|
|
|
|
24,740 |
|
|
|
36,091 |
|
Average prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil (per Bbl): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Price received |
|
$ |
64.77 |
|
|
$ |
37.05 |
|
|
|
$ |
28.86 |
|
|
$ |
31.40 |
|
Effect of crude oil hedging (1) |
|
|
(14.70 |
) |
|
|
(0.34 |
) |
|
|
|
3.00 |
|
|
|
1.96 |
|
Realized price |
|
$ |
50.07 |
|
|
$ |
36.71 |
|
|
|
$ |
31.86 |
|
|
$ |
33.36 |
|
Weighted average NYMEX price (per Bbl) (2) |
|
$ |
67.86 |
|
|
$ |
41.84 |
|
|
|
$ |
38.23 |
|
|
$ |
39.35 |
|
NGLs (per Bbl): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Price received |
|
$ |
22.53 |
|
|
$ |
5.90 |
|
|
|
$ |
4.45 |
|
|
$ |
4.91 |
|
Effect of NGL hedging (3) |
|
|
(1.19 |
) |
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
Realized price |
|
$ |
21.34 |
|
|
$ |
5.90 |
|
|
|
$ |
4.45 |
|
|
$ |
4.91 |
|
Natural gas (per Mcf): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Price received |
|
$ |
2.34 |
|
|
$ |
0.48 |
|
|
|
$ |
(0.06 |
) |
|
$ |
0.11 |
|
Effect of natural gas hedging (4) |
|
|
(0.74 |
) |
|
|
(0.11 |
) |
|
|
|
(0.01 |
) |
|
|
(0.04 |
) |
Realized price |
|
$ |
1.60 |
|
|
$ |
0.37 |
|
|
|
$ |
(0.07 |
) |
|
$ |
0.07 |
|
Weighted average NYMEX price (per MMBtu) (2) |
|
$ |
3.59 |
|
|
$ |
2.44 |
|
|
|
$ |
1.76 |
|
|
$ |
1.98 |
|
Selected operating metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales price, net of hedging ($ per BOE) |
|
$ |
35.44 |
|
|
$ |
23.74 |
|
|
|
$ |
20.39 |
|
|
$ |
21.44 |
|
Lease operating ($ per BOE) |
|
|
7.23 |
|
|
|
6.52 |
|
|
|
|
6.40 |
|
|
|
6.43 |
|
Transportation, gathering, compression and other ($ per BOE) |
|
|
0.90 |
|
|
|
0.71 |
|
|
|
|
0.90 |
|
|
|
0.84 |
|
Depreciation, depletion and amortization ($ per BOE) |
|
|
6.16 |
|
|
|
6.83 |
|
|
|
|
13.69 |
|
|
|
11.53 |
|
General and administrative ($ per BOE) |
|
|
1.48 |
|
|
|
1.91 |
|
|
|
|
3.71 |
|
|
|
3.15 |
|
Production and ad valorem taxes (% of sales revenue) |
|
|
7 |
% |
|
|
9 |
% |
|
|
|
9 |
% |
|
|
9 |
% |
(1) |
|
Whiting paid |
(2) |
|
Average NYMEX prices weighted for monthly production volumes. |
(3) |
|
Whiting paid |
(4) |
|
Whiting paid |
Selected Financial Data
For further information and discussion on the selected financial data below, please refer to Whiting’s Annual Report on Form 10‑K for the year ended
|
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Successor |
||||
|
|
Three Months Ended |
||||
|
|
|
|
|
||
|
|
2021 |
|
2021 |
||
Selected financial data: |
|
|
|
|
|
|
(In thousands, except per share data) |
|
|
|
|
|
|
Total operating revenues |
|
$ |
473,408 |
|
$ |
401,037 |
Total operating expenses |
|
|
177,379 |
|
|
199,304 |
Total other expense, net |
|
|
2,940 |
|
|
3,571 |
Net income |
|
|
292,179 |
|
|
198,162 |
Per basic share |
|
|
7.47 |
|
|
5.07 |
Per diluted share |
|
|
7.34 |
|
|
5.00 |
Adjusted net income (1) |
|
|
168,493 |
|
|
141,553 |
Per basic share |
|
|
4.31 |
|
|
3.62 |
Per diluted share |
|
|
4.23 |
|
|
3.57 |
Adjusted EBITDAX (1) |
|
|
226,356 |
|
|
201,102 |
Net cash provided by operating activities |
|
|
213,914 |
|
|
189,890 |
Adjusted free cash flow (1) |
|
|
156,269 |
|
|
127,742 |
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
||||||||
|
|
Year Ended
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
||||||
Selected financial data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(In thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total operating revenues |
|
$ |
1,533,481 |
|
$ |
273,358 |
|
|
$ |
459,004 |
|
|
$ |
732,362 |
|
Total operating expenses |
|
|
1,091,867 |
|
|
238,379 |
|
|
|
4,651,298 |
|
|
|
4,889,677 |
|
Total other (income) expense, net |
|
|
12,798 |
|
|
7,944 |
|
|
|
(170,459 |
) |
|
|
(162,515 |
) |
Net income (loss) |
|
|
427,906 |
|
|
39,073 |
|
|
|
(3,965,461 |
) |
|
|
(3,926,388 |
) |
Per basic share (2) |
|
|
10.97 |
|
|
1.03 |
|
|
|
(43.37 |
) |
|
|
(103.11 |
) |
Per diluted share (2) |
|
|
10.78 |
|
|
1.03 |
|
|
|
(43.37 |
) |
|
|
(103.11 |
) |
Adjusted net income (loss) (1) |
|
|
535,441 |
|
|
63,794 |
|
|
|
(209,656 |
) |
|
|
(145,862 |
) |
Per basic share (2) |
|
|
13.73 |
|
|
1.68 |
|
|
|
(2.29 |
) |
|
|
(3.83 |
) |
Per diluted share (2) |
|
|
13.49 |
|
|
1.67 |
|
|
|
(2.29 |
) |
|
|
(3.83 |
) |
Adjusted EBITDAX (1) |
|
|
774,025 |
|
|
154,521 |
|
|
|
227,580 |
|
|
|
382,101 |
|
Net cash provided by operating activities |
|
|
740,243 |
|
|
82,168 |
|
|
|
112,613 |
|
|
|
194,781 |
|
Adjusted free cash flow (1) |
|
|
503,550 |
|
|
102,493 |
|
|
|
(132,564 |
) |
|
|
(30,071 |
) |
(1) |
|
Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX and net cash provided by operating activities to adjusted free cash flow are included later in this news release. |
(2) |
|
For the combined year ended |
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except share and per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash |
|
$ |
41,245 |
|
|
$ |
28,367 |
|
Accounts receivable trade, net |
|
|
279,865 |
|
|
|
142,830 |
|
Prepaid expenses and other |
|
|
17,158 |
|
|
|
19,224 |
|
Total current assets |
|
|
338,268 |
|
|
|
190,421 |
|
Property and equipment: |
|
|
|
|
|
|
||
Oil and gas properties, successful efforts method |
|
|
2,274,908 |
|
|
|
1,812,601 |
|
Other property and equipment |
|
|
61,624 |
|
|
|
74,064 |
|
Total property and equipment |
|
|
2,336,532 |
|
|
|
1,886,665 |
|
Less accumulated depreciation, depletion and amortization |
|
|
(254,237 |
) |
|
|
(73,869 |
) |
Total property and equipment, net |
|
|
2,082,295 |
|
|
|
1,812,796 |
|
Other long-term assets |
|
|
37,368 |
|
|
|
40,723 |
|
TOTAL ASSETS |
|
$ |
2,457,931 |
|
|
$ |
2,043,940 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable trade |
|
$ |
48,641 |
|
|
$ |
23,697 |
|
Revenues and royalties payable |
|
|
258,527 |
|
|
|
151,196 |
|
Accrued capital expenditures |
|
|
38,914 |
|
|
|
20,155 |
|
Accrued liabilities and other |
|
|
30,726 |
|
|
|
42,007 |
|
Accrued lease operating expenses |
|
|
32,408 |
|
|
|
23,457 |
|
Taxes payable |
|
|
18,864 |
|
|
|
11,997 |
|
Derivative liabilities |
|
|
209,653 |
|
|
|
49,485 |
|
Total current liabilities |
|
|
637,733 |
|
|
|
321,994 |
|
Long-term debt |
|
|
- |
|
|
|
360,000 |
|
Asset retirement obligations |
|
|
93,915 |
|
|
|
91,864 |
|
Operating lease obligations |
|
|
14,710 |
|
|
|
17,415 |
|
Long-term derivative liabilities |
|
|
46,720 |
|
|
|
9,750 |
|
Other long-term liabilities |
|
|
1,228 |
|
|
|
14,113 |
|
Total liabilities |
|
|
794,306 |
|
|
|
815,136 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
39 |
|
|
|
38 |
|
Additional paid-in capital |
|
|
1,196,607 |
|
|
|
1,189,693 |
|
Accumulated earnings |
|
|
466,979 |
|
|
|
39,073 |
|
Total equity |
|
|
1,663,625 |
|
|
|
1,228,804 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
2,457,931 |
|
|
$ |
2,043,940 |
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||
(in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
2021 |
|
2021 |
||||
OPERATING REVENUES |
|
|
|
|
|
|
||
Oil, NGL and natural gas sales |
|
$ |
462,842 |
|
|
$ |
394,333 |
|
Purchased gas sales |
|
|
10,566 |
|
|
|
6,704 |
|
Total operating revenues |
|
|
473,408 |
|
|
|
401,037 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
||
Lease operating expenses |
|
|
62,393 |
|
|
|
56,562 |
|
Transportation, gathering, compression and other |
|
|
6,801 |
|
|
|
8,835 |
|
Purchased gas expense |
|
|
8,997 |
|
|
|
5,496 |
|
Production and ad valorem taxes |
|
|
31,885 |
|
|
|
28,712 |
|
Depreciation, depletion and amortization |
|
|
49,201 |
|
|
|
51,927 |
|
Exploration and impairment |
|
|
2,666 |
|
|
|
3,446 |
|
General and administrative |
|
|
15,273 |
|
|
|
11,961 |
|
Derivative (gain) loss, net |
|
|
(4,530 |
) |
|
|
122,559 |
|
(Gain) loss on sale of properties |
|
|
4,693 |
|
|
|
(90,194 |
) |
Total operating expenses |
|
|
177,379 |
|
|
|
199,304 |
|
INCOME FROM OPERATIONS |
|
|
296,029 |
|
|
|
201,733 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
||
Interest expense |
|
|
(3,426 |
) |
|
|
(3,871 |
) |
Other income |
|
|
486 |
|
|
|
300 |
|
Total other expense |
|
|
(2,940 |
) |
|
|
(3,571 |
) |
INCOME BEFORE INCOME TAXES |
|
|
293,089 |
|
|
|
198,162 |
|
INCOME TAX EXPENSE |
|
|
|
|
|
|
||
Current |
|
|
910 |
|
|
|
- |
|
Total income tax expense |
|
|
910 |
|
|
|
- |
|
NET INCOME |
|
$ |
292,179 |
|
|
$ |
198,162 |
|
INCOME PER COMMON SHARE |
|
|
|
|
|
|
||
Basic |
|
$ |
7.47 |
|
|
$ |
5.07 |
|
Diluted |
|
$ |
7.34 |
|
|
$ |
5.00 |
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
||
Basic |
|
|
39,132 |
|
|
|
39,121 |
|
Diluted |
|
|
39,819 |
|
|
|
39,622 |
|
|
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
||||||||||
|
|
Year Ended
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
||||||||
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil, NGL and natural gas sales |
|
$ |
1,511,837 |
|
|
$ |
273,358 |
|
|
|
$ |
459,004 |
|
|
$ |
732,362 |
|
Purchased gas sales |
|
|
21,644 |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
Total operating revenues |
|
|
1,533,481 |
|
|
|
273,358 |
|
|
|
|
459,004 |
|
|
|
732,362 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lease operating expenses |
|
|
242,476 |
|
|
|
73,981 |
|
|
|
|
158,228 |
|
|
|
232,209 |
|
Transportation, gathering, compression and other |
|
|
30,107 |
|
|
|
8,038 |
|
|
|
|
22,266 |
|
|
|
30,304 |
|
Purchased gas expense |
|
|
17,572 |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
Production and ad valorem taxes |
|
|
110,416 |
|
|
|
24,150 |
|
|
|
|
41,204 |
|
|
|
65,354 |
|
Depreciation, depletion and amortization |
|
|
206,475 |
|
|
|
77,502 |
|
|
|
|
338,757 |
|
|
|
416,259 |
|
Exploration and impairment |
|
|
10,781 |
|
|
|
7,865 |
|
|
|
|
4,184,830 |
|
|
|
4,192,695 |
|
General and administrative |
|
|
49,520 |
|
|
|
21,734 |
|
|
|
|
91,816 |
|
|
|
113,550 |
|
Derivative (gain) loss, net |
|
|
520,131 |
|
|
|
24,714 |
|
|
|
|
(181,614 |
) |
|
|
(156,900 |
) |
(Gain) loss on sale of properties |
|
|
(95,611 |
) |
|
|
395 |
|
|
|
|
927 |
|
|
|
1,322 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
- |
|
|
|
|
(5,116 |
) |
|
|
(5,116 |
) |
Total operating expenses |
|
|
1,091,867 |
|
|
|
238,379 |
|
|
|
|
4,651,298 |
|
|
|
4,889,677 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
441,614 |
|
|
|
34,979 |
|
|
|
|
(4,192,294 |
) |
|
|
(4,157,315 |
) |
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(16,381 |
) |
|
|
(8,080 |
) |
|
|
|
(73,054 |
) |
|
|
(81,134 |
) |
Gain on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
|
25,883 |
|
|
|
25,883 |
|
Interest income and other |
|
|
3,583 |
|
|
|
136 |
|
|
|
|
211 |
|
|
|
347 |
|
Reorganization items, net |
|
|
- |
|
|
|
- |
|
|
|
|
217,419 |
|
|
|
217,419 |
|
Total other income (expense) |
|
|
(12,798 |
) |
|
|
(7,944 |
) |
|
|
|
170,459 |
|
|
|
162,515 |
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
428,816 |
|
|
|
27,035 |
|
|
|
|
(4,021,835 |
) |
|
|
(3,994,800 |
) |
INCOME TAX EXPENSE (BENEFIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current |
|
|
910 |
|
|
|
2,463 |
|
|
|
|
2,718 |
|
|
|
5,181 |
|
Deferred |
|
|
- |
|
|
|
(14,501 |
) |
|
|
|
(59,092 |
) |
|
|
(73,593 |
) |
Total income tax expense (benefit) |
|
|
910 |
|
|
|
(12,038 |
) |
|
|
|
(56,374 |
) |
|
|
(68,412 |
) |
NET INCOME (LOSS) |
|
$ |
427,906 |
|
|
$ |
39,073 |
|
|
|
$ |
(3,965,461 |
) |
|
$ |
(3,926,388 |
) |
INCOME (LOSS) PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic (1) |
|
$ |
10.97 |
|
|
$ |
1.03 |
|
|
|
$ |
(43.37 |
) |
|
$ |
(103.11 |
) |
Diluted (1) |
|
$ |
10.78 |
|
|
$ |
1.03 |
|
|
|
$ |
(43.37 |
) |
|
$ |
(103.11 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic (1) |
|
|
39,006 |
|
|
|
38,080 |
|
|
|
|
91,423 |
|
|
|
38,080 |
|
Diluted (1) |
|
|
39,692 |
|
|
|
38,119 |
|
|
|
|
91,423 |
|
|
|
38,080 |
|
(1) |
|
For the combined year ended |
Non-GAAP Financial Measures
|
||||||||
Reconciliation of Net Income to Adjusted Net Income |
||||||||
(in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
2021 |
|
2021 |
||||
Net income |
|
$ |
292,179 |
|
|
$ |
198,162 |
|
Adjustments: |
|
|
|
|
|
|
||
(Gain) loss on sale of properties |
|
|
4,693 |
|
|
|
(90,194 |
) |
Impairment expense |
|
|
1,577 |
|
|
|
2,439 |
|
Total measure of derivative (gain) loss reported under |
|
|
(4,530 |
) |
|
|
122,559 |
|
Total net cash settlements paid on commodity derivatives during the period |
|
|
(125,426 |
) |
|
|
(91,413 |
) |
Adjusted net income (1) |
|
$ |
168,493 |
|
|
$ |
141,553 |
|
Adjusted net income per share, basic (1) |
|
$ |
4.31 |
|
|
$ |
3.62 |
|
Adjusted net income per share, diluted (1) |
|
$ |
4.23 |
|
|
$ |
3.57 |
|
(1) |
|
Adjusted net income and adjusted net income per share are non-GAAP measures. Management believes they provide useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that adjusted net income 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 and adjusted net income per share 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 |
|
|||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) |
|||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
||||||||||
|
|
Year Ended
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
||||||||
Net income (loss) |
|
$ |
427,906 |
|
|
$ |
39,073 |
|
|
|
$ |
(3,965,461 |
) |
|
$ |
(3,926,388 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of deferred gain on sale |
|
|
- |
|
|
|
- |
|
|
|
|
(5,116 |
) |
|
|
(5,116 |
) |
(Gain) loss on sale of properties |
|
|
(95,611 |
) |
|
|
395 |
|
|
|
|
927 |
|
|
|
1,322 |
|
Impairment expense |
|
|
6,707 |
|
|
|
3,233 |
|
|
|
|
4,161,885 |
|
|
|
4,165,118 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
|
(25,883 |
) |
|
|
(25,883 |
) |
Total measure of derivative (gain) loss reported under |
|
|
520,131 |
|
|
|
24,714 |
|
|
|
|
(181,614 |
) |
|
|
(156,900 |
) |
Total net cash settlements received (paid) on commodity derivatives during the period |
|
|
(323,692 |
) |
|
|
(3,942 |
) |
|
|
|
45,483 |
|
|
|
41,541 |
|
Reorganization items, net |
|
|
- |
|
|
|
- |
|
|
|
|
(217,419 |
) |
|
|
(217,419 |
) |
Restructuring and other one-time costs (1) |
|
|
- |
|
|
|
12,359 |
|
|
|
|
32,888 |
|
|
|
45,247 |
|
Tax impact of basis difference for |
|
|
- |
|
|
|
(12,038 |
) |
|
|
|
(55,346 |
) |
|
|
(67,384 |
) |
Adjusted net income (loss) (2) |
|
$ |
535,441 |
|
|
$ |
63,794 |
|
|
|
$ |
(209,656 |
) |
|
$ |
(145,862 |
) |
Adjusted net income (loss) per share, basic (2)(3) |
|
$ |
13.73 |
|
|
$ |
1.68 |
|
|
|
$ |
(2.29 |
) |
|
$ |
(3.83 |
) |
Adjusted net income (loss) per share, diluted (2)(3) |
|
$ |
13.49 |
|
|
$ |
1.67 |
|
|
|
$ |
(2.29 |
) |
|
$ |
(3.83 |
) |
(1) |
|
Includes severance and restructuring charges incurred during a company restructuring in |
(2) |
|
Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. Management believes they provide useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that adjusted net income (loss) 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) and adjusted net income (loss) per share 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 |
(3) |
|
For the combined year ended |
|
||||||||
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDAX |
||||||||
(in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
2021 |
|
2021 |
||||
Net income |
|
$ |
292,179 |
|
|
$ |
198,162 |
|
Interest expense |
|
|
3,426 |
|
|
|
3,871 |
|
Income tax expense |
|
|
910 |
|
|
|
- |
|
Depreciation, depletion and amortization |
|
|
49,201 |
|
|
|
51,927 |
|
Total measure of derivative (gain) loss reported under |
|
|
(4,530 |
) |
|
|
122,559 |
|
Total cash settlements paid on commodity derivatives during the period |
|
|
(125,426 |
) |
|
|
(91,413 |
) |
Non-cash stock-based compensation |
|
|
3,237 |
|
|
|
2,744 |
|
Impairment expense |
|
|
1,577 |
|
|
|
2,439 |
|
(Gain) loss on sale of properties |
|
|
4,693 |
|
|
|
(90,194 |
) |
Adjusted EBITDA (1) |
|
|
225,267 |
|
|
|
200,095 |
|
Exploration expense |
|
|
1,089 |
|
|
|
1,007 |
|
Adjusted EBITDAX (1) |
|
$ |
226,356 |
|
|
$ |
201,102 |
|
(1) |
|
Adjusted EBITDA and Adjusted EBITDAX are non-GAAP measures. These measures are presented because management believes they provide useful information to investors for analysis of the Company’s performance. Adjusted EBITDA and Adjusted EBITDAX 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 |
|
|||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX |
|||||||||||||||||
(in thousands) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
||||||||||
|
|
Year Ended
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
||||||||
Net income (loss) |
|
$ |
427,906 |
|
|
$ |
39,073 |
|
|
|
$ |
(3,965,461 |
) |
|
$ |
(3,926,388 |
) |
Interest expense |
|
|
16,381 |
|
|
|
8,080 |
|
|
|
|
73,054 |
|
|
|
81,134 |
|
Interest income |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
|
(211 |
) |
|
|
(213 |
) |
Income tax expense (benefit) |
|
|
910 |
|
|
|
(12,038 |
) |
|
|
|
(56,374 |
) |
|
|
(68,412 |
) |
Depreciation, depletion and amortization |
|
|
206,475 |
|
|
|
77,502 |
|
|
|
|
338,757 |
|
|
|
416,259 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
- |
|
|
|
|
(5,116 |
) |
|
|
(5,116 |
) |
Total measure of derivative (gain) loss reported under |
|
|
520,131 |
|
|
|
24,714 |
|
|
|
|
(181,614 |
) |
|
|
(156,900 |
) |
Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs |
|
|
(323,692 |
) |
|
|
(3,942 |
) |
|
|
|
45,483 |
|
|
|
41,541 |
|
Non-cash stock-based compensation |
|
|
10,745 |
|
|
|
515 |
|
|
|
|
3,719 |
|
|
|
4,234 |
|
Impairment expense |
|
|
6,707 |
|
|
|
3,233 |
|
|
|
|
4,161,885 |
|
|
|
4,165,118 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
|
(25,883 |
) |
|
|
(25,883 |
) |
(Gain) loss on sale of properties |
|
|
(95,611 |
) |
|
|
395 |
|
|
|
|
927 |
|
|
|
1,322 |
|
Reorganization items, net |
|
|
- |
|
|
|
- |
|
|
|
|
(217,419 |
) |
|
|
(217,419 |
) |
Restructuring and other one-time costs (1) |
|
|
- |
|
|
|
12,359 |
|
|
|
|
32,888 |
|
|
|
45,247 |
|
Adjusted EBITDA (2) |
|
|
769,951 |
|
|
|
149,889 |
|
|
|
|
204,635 |
|
|
|
354,524 |
|
Exploration expense |
|
|
4,074 |
|
|
|
4,632 |
|
|
|
|
22,945 |
|
|
|
27,577 |
|
Adjusted EBITDAX (2) |
|
$ |
774,025 |
|
|
$ |
154,521 |
|
|
|
$ |
227,580 |
|
|
$ |
382,101 |
|
(1) |
|
Includes severance and restructuring charges incurred during a company restructuring in |
(2) |
|
Adjusted EBITDA and Adjusted EBITDAX are non-GAAP measures. These measures are presented because management believes they provide useful information to investors for analysis of the Company’s performance. Adjusted EBITDA and Adjusted EBITDAX 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 |
|
||||||||
Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow |
||||||||
(in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
2021 |
|
2021 |
||||
Net cash provided by operating activities |
|
$ |
213,914 |
|
|
$ |
189,890 |
|
Changes in working capital |
|
|
8,550 |
|
|
|
4,788 |
|
Accrued capital expenditures |
|
|
(66,195 |
) |
|
|
(66,936 |
) |
Adjusted free cash flow (1) |
|
$ |
156,269 |
|
|
$ |
127,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
||||||||||
|
|
Year Ended
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
||||||||
Net cash provided by operating activities |
|
$ |
740,243 |
|
|
$ |
82,168 |
|
|
|
|
112,613 |
|
|
|
194,781 |
|
Changes in working capital |
|
|
10,508 |
|
|
|
44,318 |
|
|
|
|
(59,815 |
) |
|
|
(15,497 |
) |
Accrued capital expenditures |
|
|
(247,201 |
) |
|
|
(23,993 |
) |
|
|
|
(185,362 |
) |
|
|
(209,355 |
) |
Adjusted free cash flow (1) |
|
$ |
503,550 |
|
|
$ |
102,493 |
|
|
|
$ |
(132,564 |
) |
|
$ |
(30,071 |
) |
(1) |
|
Adjusted free cash flow is a non-GAAP measure. This measure is presented because management believes it provides useful information to investors for analysis of the Company’s ability to internally fund acquisitions and development activity and reduce its borrowings outstanding under its revolving credit facility. This measure 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 |
About
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 production, cash flows, revenues, costs, capital expenditures and debt levels, the effect of acquisitions and divestitures and plans, dividends and other forms of return of capital, and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “guidance,” or “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:
- declines in, or extended periods of low oil, NGL or natural gas prices;
- the occurrence of epidemic or pandemic diseases, including the coronavirus pandemic;
-
action or inaction of the
Organization of Petroleum Exporting Countries and other oil exporting nations to set and maintain production levels; - the impacts of hedging on our results of operations;
- regulatory developments, including the potential shutdown of the Dakota Access Pipeline and new or amended federal, state and local initiatives relating to the regulation of hydraulic fracturing, air emissions and other aspects of oil and gas operations that could have a negative effect on the oil and gas industry and/or increase costs of compliance;
- the geographic concentration of our operations;
- our inability to access oil and gas markets due to market conditions or operational impediments;
- adequacy of midstream and downstream transportation capacity and infrastructure;
- shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services;
- adverse weather conditions that may negatively impact development or production activities;
- potential losses and claims resulting from our oil and gas operations, including uninsured or underinsured losses;
- lack of control over non-operated properties;
- cybersecurity attacks or failures of our telecommunication and other information technology infrastructure;
- 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;
- impact of negative shifts in investor sentiment and public perception towards the oil and gas industry and corporate governance standards;
- climate change issues;
- litigation and other legal proceedings; and
-
other risks described under the caption “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the period ended
December 31, 2021 .
We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220223006203/en/
Company Contact:
Title: Investor Relations Director
Phone: 303-390-4969
Email: Brandond@whiting.com
Source:
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