Whiting Petroleum Reports Second Quarter 2021 Financial and Operating Results
Whiting Petroleum Corporation (NYSE: WLL) reported second quarter 2021 results with revenue of $352 million and a net loss of $62 million or $1.57 per diluted share. Adjusted net income was $118 million or $3.01 per share. The company generated $183 million in cash from operations, with $111 million of adjusted free cash flow. Production averaged 92.6 MBOE/d, benefitting from better well performance. Whiting also announced asset acquisitions and divestitures to enhance its portfolio. Guidance for 2021 was updated to reflect increased production and cash flow expectations, projecting over $700 million in EBITDAX for the year.
- Increased revenue by $44 million compared to Q1 2021.
- Generated $183 million in net cash from operating activities.
- Achieved $111 million in adjusted free cash flow.
- Production averaged 92.6 MBOE/d, benefiting from better well performance.
- Updated guidance includes projected $700 million EBITDAX and $425 million adjusted free cash flow for 2021.
- Net loss of $62 million in Q2 2021 compared to a $0.9 million loss in Q1 2021.
- Lease operating expenses increased to $64 million from $59 million in Q1 2021.
Whiting Petroleum Corporation (NYSE: WLL) (“Whiting” or the “Company”) today announced second quarter 2021 results.
Second Quarter 2021 Highlights
-
Revenue was
$352 million for the quarter ending June 30, 2021 -
Net loss (GAAP) was
$62 million or$1.57 per diluted share -
Adjusted net income (non-GAAP) was
$118 million or$3.01 per diluted share -
Adjusted EBITDAX (non-GAAP) was
$176 million -
June 30, 2021 net debt of
$98 million (non-GAAP)
Lynn A. Peterson, President and CEO commented, "Our team is delivering positive results and the economic conditions continue to be in our favor. We generated net cash provided by operating activities of
Second Quarter 2021 Results
Revenue for the second quarter of 2021 increased
Net loss for the second quarter of 2021 was
The Company’s adjusted EBITDAX (non-GAAP) for the second 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 averaged 92.6 thousand barrels of oil equivalent per day (MBOE/d) and oil production averaged 53.4 thousand barrels of oil per day (MBO/d). Total production benefited from better than forecasted well performance and increased ethane recoveries from our processed natural gas.
Capital expenditures in the second quarter of 2021 were
Lease operating expense (LOE) for the second quarter of 2021 was
During the second quarter, oil differentials improved reflecting a more certain expectation of continued DAPL operations during the EIS. Additionally, as basin total production levels remained relatively flat, there was decreased utilization of pipeline capacity further supporting narrowed differentials.
Full-Year 2021 Guidance
Based on the Company’s increased expectations for the remainder of the year along with the outperformance in the first half of 2021, Whiting adjusted its guidance parameters as shown in the following table. This guidance includes the effect of its previously announced acquisition and divestiture.
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Previous Guidance |
Updated Guidance |
Production (MBOE per day) |
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82 - 88 |
88 - 92 |
Oil production (MBO per day) |
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48 - 52 |
50 - 53 |
Capital expenditures (MM) |
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Lease operating expense (MM) |
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General and administrative cash expense (MM) (1) |
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|
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Oil price wellhead differential to NYMEX per Bbl (2) |
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1) |
Net of allocations to LOE and reimbursable costs and excludes non-cash equity compensation expense |
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2) |
Includes gathering, transportation and compression |
As a result of this updated guidance along with WTI oil price of
Liquidity
As of June 30, 2021, the Company had a borrowing base of
Conference Call
Whiting will host a conference call on Thursday, August 5, 2021 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time) to discuss the second quarter 2021 results. The call will be conducted by President and Chief Executive Officer Lynn A. Peterson, Executive Vice President Finance and Chief Financial Officer James P. Henderson, Executive Vice President Operations and Chief Operating Officer Charles J. Rimer and Investor Relations Manager Brandon Day. A question and answer session will immediately follow the discussion of the results for the quarter.
To participate in this call please dial:
Domestic Dial-in Number (Toll Free U.S. & International): (877) 328-5506, (412) 317-5422 (International)
Webcast URL: https://dpregister.com/sreg/10158599/eb183f25dc
Replay Information:
Conference ID #: 10158599
Replay Dial-In (Toll Free U.S. & International): (877) 344-7529 (U.S.), (412) 317-0088 (International)
Expiration Date: August 13, 2021
Commodity Price Hedging
Whiting currently has approximately
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Weighted Average |
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Settlement Period |
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Index |
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Derivative Instrument |
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Total Volumes |
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Units |
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Swap Price |
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Floor |
|
Ceiling |
Crude Oil |
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2021(1) |
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NYMEX WTI |
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Fixed Price Swaps |
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3,588,000 |
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Bbl |
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|
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- |
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- |
2021(1) |
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NYMEX WTI |
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Two-way Collars |
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3,162,000 |
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Bbl |
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- |
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Q1 2022 |
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NYMEX WTI |
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Fixed Price Swaps |
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630,000 |
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Bbl |
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- |
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- |
2022 |
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NYMEX WTI |
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Two-way Collars |
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9,559,000 |
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Bbl |
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- |
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Q1-Q3 2023 |
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NYMEX WTI |
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Two-way Collars |
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3,443,500 |
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Bbl |
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- |
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Total |
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20,382,500 |
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Crude Oil Differentials |
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2021(1) |
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UHC Clearbrook to NYMEX |
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Fixed Price Swaps |
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76,500 |
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Bbl |
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- |
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- |
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- |
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Total |
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76,500 |
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Natural Gas |
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2021(1) |
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NYMEX Henry Hub |
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Fixed Price Swaps |
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8,970,000 |
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MMBtu |
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- |
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- |
2021(1) |
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NYMEX Henry Hub |
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Two-way Collars |
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5,520,000 |
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MMBtu |
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- |
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Q1-Q3 2022 |
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NYMEX Henry Hub |
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Fixed Price Swaps |
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5,259,000 |
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MMBtu |
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- |
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- |
2022 |
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NYMEX Henry Hub |
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Two-way Collars |
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11,824,000 |
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MMBtu |
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- |
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Q1-Q3 2023 |
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NYMEX Henry Hub |
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Two-way Collars |
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6,999,000 |
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MMBtu |
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- |
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Total |
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38,572,000 |
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Natural Gas Basis |
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2021(1) |
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NNG Ventura to NYMEX |
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Fixed Price Swaps |
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3,680,000 |
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MMBtu |
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- |
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- |
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- |
Q1-Q2 2022 |
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NNG Ventura to NYMEX |
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Fixed Price Swaps |
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3,530,000 |
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MMBtu |
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- |
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- |
Q1-Q2 2023 |
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NNG Ventura to NYMEX |
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Fixed Price Swaps |
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4,740,000 |
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MMBtu |
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- |
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- |
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Total |
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11,950,000 |
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NGL - Propane |
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2021(1) |
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Mont Belvieu |
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Fixed Price Swaps |
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19,320,000 |
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Gallons |
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- |
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- |
Q1 2022 |
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Mont Belvieu |
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Fixed Price Swaps |
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3,780,000 |
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Gallons |
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- |
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- |
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Total |
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23,100,000 |
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(1) |
Includes settlement periods of July through December 2021. |
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 (September 1, 2020).
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Successor |
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Three Months Ended |
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June 30, 2021 |
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March 31, 2021 |
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Selected operating statistics: |
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Production |
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Oil (MBbl) |
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4,860 |
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4,822 |
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NGLs (MBbl) |
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1,793 |
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1,559 |
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Natural gas (MMcf) |
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10,666 |
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10,249 |
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Total production (MBOE) |
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8,431 |
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8,090 |
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Average prices |
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Oil (per Bbl): |
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Price received |
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$ |
63.46 |
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$ |
53.24 |
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Effect of crude oil hedging (1) |
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(13.64 |
) |
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(8.16 |
) |
Realized price |
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$ |
49.82 |
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$ |
45.08 |
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Weighted average NYMEX price (per Bbl) (2) |
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$ |
66.03 |
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$ |
57.83 |
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NGLs (per Bbl): |
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Price received |
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$ |
15.76 |
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$ |
17.28 |
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Effect of NGLs hedging (3) |
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(0.47 |
) |
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- |
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Realized price |
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$ |
15.29 |
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$ |
17.28 |
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Natural gas (per Mcf): |
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Price received |
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$ |
1.25 |
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$ |
2.05 |
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Effect of natural gas hedging (4) |
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(0.04 |
) |
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|
0.01 |
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Realized price |
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$ |
1.21 |
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$ |
2.06 |
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Weighted average NYMEX price (per MMBtu) (2) |
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$ |
2.74 |
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$ |
2.56 |
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Selected operating metrics |
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Sales price, net of hedging ($ per BOE) |
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$ |
33.50 |
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$ |
32.80 |
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Lease operating ($ per BOE) |
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7.61 |
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7.34 |
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Transportation, gathering, compression and other ($ per BOE) |
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0.88 |
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0.87 |
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Depreciation, depletion and amortization ($ per BOE) |
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6.12 |
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6.64 |
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General and administrative ($ per BOE) |
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1.42 |
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|
1.27 |
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Production and ad valorem taxes (% of sales revenue) |
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7 |
% |
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8 |
% |
(1) |
Whiting paid |
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(2) |
Average NYMEX prices weighted for monthly production volumes. |
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(3) |
Whiting paid |
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(4) |
Whiting paid |
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Successor |
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Predecessor |
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Six Months Ended |
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Six Months Ended |
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June 30, 2021 |
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June 30, 2020 |
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Selected operating statistics: |
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Production |
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Oil (MBbl) |
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|
9,682 |
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|
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|
11,811 |
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NGLs (MBbl) |
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|
3,353 |
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|
|
|
3,440 |
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Natural gas (MMcf) |
|
|
20,916 |
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|
|
|
22,562 |
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Total production (MBOE) |
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|
16,521 |
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|
|
|
19,011 |
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Average prices |
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|
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Oil (per Bbl): |
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Price received |
|
$ |
58.37 |
|
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$ |
27.42 |
|
Effect of crude oil hedging (1) |
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|
(10.91 |
) |
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|
3.91 |
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Realized price |
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$ |
47.46 |
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$ |
31.33 |
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Weighted average NYMEX price (per Bbl) (2) |
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$ |
61.95 |
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$ |
37.25 |
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NGLs (per Bbl): |
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Price received |
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$ |
16.47 |
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$ |
3.27 |
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Effect of NGLs hedging (3) |
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(0.26 |
) |
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|
- |
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Realized price |
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$ |
16.21 |
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$ |
3.27 |
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Natural gas (per Mcf): |
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Price received |
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$ |
1.64 |
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$ |
0.06 |
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Effect of natural gas hedging (4) |
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(0.02 |
) |
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|
- |
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Realized price |
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$ |
1.62 |
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$ |
0.06 |
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Weighted average NYMEX price (per MMBtu) (2) |
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$ |
2.65 |
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$ |
1.77 |
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Selected operating metrics |
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Sales price, net of hedging ($ per BOE) |
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$ |
33.16 |
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$ |
20.13 |
|
Lease operating ($ per BOE) |
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|
7.48 |
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|
|
|
6.61 |
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Transportation, gathering, compression and other ($ per BOE) |
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|
0.88 |
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|
|
0.95 |
|
Depreciation, depletion and amortization ($ per BOE) |
|
|
6.38 |
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|
|
|
14.07 |
|
General and administrative ($ per BOE) |
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|
1.35 |
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|
|
3.96 |
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Production and ad valorem taxes (% of sales revenue) |
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|
8 |
% |
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|
9 |
% |
(1) |
Whiting paid |
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(2) |
Average NYMEX prices weighted for monthly production volumes. |
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(3) |
Whiting paid |
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(4) |
Whiting paid |
Selected Financial Data
For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation’s Quarterly Report on Form 10‑Q for the quarter ended June 30, 2021 filed with the Securities and Exchange Commission.
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Successor |
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Three Months Ended |
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June 30, 2021 |
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March 31, 2021 |
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Selected financial data: |
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(In thousands, except per share data) |
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Total operating revenues |
|
$ |
351,646 |
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|
$ |
307,391 |
|
Total operating expenses |
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|
409,431 |
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|
305,754 |
|
Total other expense, net |
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|
3,704 |
|
|
|
2,583 |
|
Net loss |
|
|
(61,489 |
) |
|
|
(946 |
) |
Per basic share |
|
|
(1.57 |
) |
|
|
(0.02 |
) |
Per diluted share |
|
|
(1.57 |
) |
|
|
(0.02 |
) |
Adjusted net income (1) |
|
|
117,501 |
|
|
|
107,894 |
|
Per basic share |
|
|
3.01 |
|
|
|
2.79 |
|
Per diluted share |
|
|
3.01 |
|
|
|
2.79 |
|
Adjusted EBITDAX (1) |
|
|
176,351 |
|
|
|
170,216 |
|
Net cash provided by operating activities |
|
|
183,246 |
|
|
|
153,193 |
|
Adjusted free cash flow (1) |
|
|
111,295 |
|
|
|
108,244 |
|
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
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|
Six Months Ended |
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|
Six Months Ended |
||||
|
|
June 30, 2021 |
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|
June 30, 2020 |
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Selected financial data: |
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(In thousands, except per share data) |
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Total operating revenues |
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$ |
659,037 |
|
|
|
$ |
336,446 |
|
Total operating expenses |
|
|
715,185 |
|
|
|
|
4,462,827 |
|
Total other expense, net |
|
|
6,287 |
|
|
|
|
77,533 |
|
Net loss |
|
|
(62,435 |
) |
|
|
|
(4,202,886 |
) |
Per basic share |
|
|
(1.61 |
) |
|
|
|
(45.98 |
) |
Per diluted share |
|
|
(1.61 |
) |
|
|
|
(45.98 |
) |
Adjusted net income (loss) (1) |
|
|
225,395 |
|
|
|
|
(188,526 |
) |
Per basic share |
|
|
5.80 |
|
|
|
|
(2.06 |
) |
Per diluted share |
|
|
5.80 |
|
|
|
|
(2.06 |
) |
Adjusted EBITDAX (1) |
|
|
346,567 |
|
|
|
|
162,814 |
|
Net cash provided by operating activities |
|
|
336,439 |
|
|
|
|
67,262 |
|
Adjusted free cash flow (1) |
|
|
219,539 |
|
|
|
|
(119,887 |
) |
| (1) | Reconciliations of net 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. |
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share data) |
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Successor |
||||||
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|
June 30, |
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December 31, |
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2021 |
|
2020 |
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ASSETS |
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Current assets: |
|
|
|
|
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|
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Cash, cash equivalents and restricted cash |
|
$ |
19,053 |
|
|
$ |
28,367 |
|
Accounts receivable trade, net |
|
|
214,223 |
|
|
|
142,830 |
|
Prepaid expenses and other |
|
|
14,740 |
|
|
|
19,224 |
|
Total current assets |
|
|
248,016 |
|
|
|
190,421 |
|
Property and equipment: |
|
|
|
|
|
|
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Oil and gas properties, successful efforts method |
|
|
1,929,550 |
|
|
|
1,812,601 |
|
Other property and equipment |
|
|
68,443 |
|
|
|
74,064 |
|
Total property and equipment |
|
|
1,997,993 |
|
|
|
1,886,665 |
|
Less accumulated depreciation, depletion and amortization |
|
|
(177,084 |
) |
|
|
(73,869 |
) |
Total property and equipment, net |
|
|
1,820,909 |
|
|
|
1,812,796 |
|
Other long-term assets |
|
|
39,189 |
|
|
|
40,723 |
|
TOTAL ASSETS |
|
$ |
2,108,114 |
|
|
$ |
2,043,940 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable trade |
|
$ |
51,786 |
|
|
$ |
23,697 |
|
Revenues and royalties payable |
|
|
191,248 |
|
|
|
151,196 |
|
Accrued capital expenditures |
|
|
22,877 |
|
|
|
20,155 |
|
Accrued liabilities and other |
|
|
35,143 |
|
|
|
42,007 |
|
Accrued lease operating expenses |
|
|
28,642 |
|
|
|
23,457 |
|
Taxes payable |
|
|
16,712 |
|
|
|
11,997 |
|
Derivative liabilities |
|
|
265,130 |
|
|
|
49,485 |
|
Total current liabilities |
|
|
611,538 |
|
|
|
321,994 |
|
Long-term debt |
|
|
115,000 |
|
|
|
360,000 |
|
Asset retirement obligations |
|
|
93,276 |
|
|
|
91,864 |
|
Operating lease obligations |
|
|
16,265 |
|
|
|
17,415 |
|
Long-term derivative liabilities |
|
|
89,354 |
|
|
|
9,750 |
|
Other long-term liabilities |
|
|
12,909 |
|
|
|
14,113 |
|
Total liabilities |
|
|
938,342 |
|
|
|
815,136 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Successor common stock, |
|
|
39 |
|
|
|
38 |
|
Additional paid-in capital |
|
|
1,193,095 |
|
|
|
1,189,693 |
|
Accumulated earnings (deficit) |
|
|
(23,362 |
) |
|
|
39,073 |
|
Total equity |
|
|
1,169,772 |
|
|
|
1,228,804 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
2,108,114 |
|
|
$ |
2,043,940 |
|
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
June 30, 2021 |
|
March 31, 2021 |
||||
OPERATING REVENUES |
|
|
|
|
|
|
||
Oil, NGL and natural gas sales |
|
$ |
349,983 |
|
|
$ |
304,679 |
|
Purchased gas sales |
|
|
1,663 |
|
|
|
2,712 |
|
Total operating revenues |
|
|
351,646 |
|
|
|
307,391 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
||
Lease operating expenses |
|
|
64,182 |
|
|
|
59,339 |
|
Transportation, gathering, compression and other |
|
|
7,443 |
|
|
|
7,028 |
|
Purchased gas expense |
|
|
1,178 |
|
|
|
1,902 |
|
Production and ad valorem taxes |
|
|
25,669 |
|
|
|
24,150 |
|
Depreciation, depletion and amortization |
|
|
51,618 |
|
|
|
53,729 |
|
Exploration and impairment |
|
|
2,047 |
|
|
|
2,622 |
|
General and administrative |
|
|
11,995 |
|
|
|
10,291 |
|
Derivative loss, net |
|
|
255,409 |
|
|
|
146,693 |
|
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
- |
|
Total operating expenses |
|
|
409,431 |
|
|
|
305,754 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
(57,785 |
) |
|
|
1,637 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
||
Interest expense |
|
|
(3,981 |
) |
|
|
(5,103 |
) |
Other income |
|
|
277 |
|
|
|
2,520 |
|
Total other expense |
|
|
(3,704 |
) |
|
|
(2,583 |
) |
NET LOSS |
|
$ |
(61,489 |
) |
|
$ |
(946 |
) |
LOSS PER COMMON SHARE |
|
|
|
|
|
|
||
Basic |
|
$ |
(1.57 |
) |
|
$ |
(0.02 |
) |
Diluted |
|
$ |
(1.57 |
) |
|
$ |
(0.02 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
||
Basic |
|
|
39,067 |
|
|
|
38,698 |
|
Diluted |
|
|
39,067 |
|
|
|
38,698 |
|
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Six Months Ended |
|
|
Six Months Ended |
||||
|
|
June 30, 2021 |
|
|
June 30, 2020 |
||||
OPERATING REVENUES |
|
|
|
|
|
|
|
||
Oil, NGL and natural gas sales |
|
$ |
654,662 |
|
|
|
$ |
336,446 |
|
Purchased gas sales |
|
|
4,375 |
|
|
|
|
- |
|
Total operating revenues |
|
|
659,037 |
|
|
|
|
336,446 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||
Lease operating expenses |
|
|
123,521 |
|
|
|
|
125,582 |
|
Transportation, gathering, compression and other |
|
|
14,471 |
|
|
|
|
18,007 |
|
Purchased gas expense |
|
|
3,080 |
|
|
|
|
- |
|
Production and ad valorem taxes |
|
|
49,819 |
|
|
|
|
30,842 |
|
Depreciation, depletion and amortization |
|
|
105,347 |
|
|
|
|
267,517 |
|
Exploration and impairment |
|
|
4,669 |
|
|
|
|
4,174,613 |
|
General and administrative |
|
|
22,286 |
|
|
|
|
75,303 |
|
Derivative (gain) loss, net |
|
|
402,102 |
|
|
|
|
(224,739 |
) |
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
|
(353 |
) |
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(3,945 |
) |
Total operating expenses |
|
|
715,185 |
|
|
|
|
4,462,827 |
|
LOSS FROM OPERATIONS |
|
|
(56,148 |
) |
|
|
|
(4,126,381 |
) |
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
||
Interest expense |
|
|
(9,084 |
) |
|
|
|
(61,675 |
) |
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
25,883 |
|
Interest income and other |
|
|
2,797 |
|
|
|
|
72 |
|
Reorganization items |
|
|
- |
|
|
|
|
(41,813 |
) |
Total other expense |
|
|
(6,287 |
) |
|
|
|
(77,533 |
) |
LOSS BEFORE INCOME TAXES |
|
|
(62,435 |
) |
|
|
|
(4,203,914 |
) |
INCOME TAX EXPENSE (BENEFIT) |
|
|
|
|
|
|
|
||
Current |
|
|
- |
|
|
|
|
2,718 |
|
Deferred |
|
|
- |
|
|
|
|
(3,746 |
) |
Total income tax benefit |
|
|
- |
|
|
|
|
(1,028 |
) |
NET LOSS |
|
$ |
(62,435 |
) |
|
|
$ |
(4,202,886 |
) |
LOSS PER COMMON SHARE |
|
|
|
|
|
|
|
||
Basic |
|
$ |
(1.61 |
) |
|
|
$ |
(45.98 |
) |
Diluted |
|
$ |
(1.61 |
) |
|
|
$ |
(45.98 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
||
Basic |
|
|
38,883 |
|
|
|
|
91,409 |
|
Diluted |
|
|
38,883 |
|
|
|
|
91,409 |
|
About Non-GAAP Financial Measures
WHITING PETROLEUM CORPORATION Reconciliation of Net Loss to Adjusted Net Income (in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
June 30, 2021 |
|
March 31, 2021 |
||||
Net loss |
|
$ |
(61,489 |
) |
|
$ |
(946 |
) |
Adjustments: |
|
|
|
|
|
|
||
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
- |
|
Impairment expense |
|
|
1,250 |
|
|
|
1,441 |
|
Total measure of derivative loss reported under U.S. GAAP |
|
|
255,409 |
|
|
|
146,693 |
|
Total net cash settlements paid on commodity derivatives during the period |
|
|
(67,559 |
) |
|
|
(39,294 |
) |
Adjusted net income (1) |
|
$ |
117,501 |
|
|
$ |
107,894 |
|
Adjusted net income per share, basic (1) |
|
$ |
3.01 |
|
|
$ |
2.79 |
|
Adjusted net income per share, diluted (1) |
|
$ |
3.01 |
|
|
$ |
2.79 |
|
(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 U.S. GAAP and may not be comparable to other similarly titled measures of other companies. |
WHITING PETROLEUM CORPORATION Reconciliation of Net Loss to Adjusted Net Income (in thousands, except per share data) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Six Months Ended |
|
|
Six Months Ended |
||||
|
|
June 30, 2021 |
|
|
June 30, 2020 |
||||
Net loss |
|
$ |
(62,435 |
) |
|
|
$ |
(4,202,886 |
) |
Adjustments: |
|
|
|
|
|
|
|
||
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(3,945 |
) |
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
|
(353 |
) |
Impairment expense |
|
|
2,691 |
|
|
|
|
4,154,369 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(25,883 |
) |
Total measure of derivative (gain) loss reported under U.S. GAAP |
|
|
402,102 |
|
|
|
|
(224,739 |
) |
Total net cash settlements received (paid) on commodity derivatives during the period |
|
|
(106,853 |
) |
|
|
|
46,214 |
|
Reorganization items, net |
|
|
- |
|
|
|
|
41,813 |
|
Restructuring and other one-time costs (1) |
|
|
- |
|
|
|
|
26,884 |
|
Adjusted net income (loss) (2) |
|
$ |
225,395 |
|
|
|
$ |
(188,526 |
) |
Adjusted net income (loss) per share, basic (2) |
|
$ |
5.80 |
|
|
|
$ |
(2.06 |
) |
Adjusted net income (loss) per share, diluted (2) |
|
$ |
5.80 |
|
|
|
$ |
(2.06 |
) |
(1) |
Includes cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for chapter 11 bankruptcy and charges related to a legal settlement. |
|
(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 U.S. GAAP and may not be comparable to other similarly titled measures of other companies. |
WHITING PETROLEUM CORPORATION Reconciliation of Net Loss to Adjusted EBITDA and Adjusted EBITDAX (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
June 30, 2021 |
|
March 31, 2021 |
||||
Net loss |
|
$ |
(61,489 |
) |
|
$ |
(946 |
) |
Interest expense |
|
|
3,981 |
|
|
|
5,103 |
|
Interest income |
|
|
(1 |
) |
|
|
- |
|
Depreciation, depletion and amortization |
|
|
51,618 |
|
|
|
53,729 |
|
Total measure of derivative loss reported under U.S. GAAP |
|
|
255,409 |
|
|
|
146,693 |
|
Total cash settlements paid on commodity derivatives during the period |
|
|
(67,559 |
) |
|
|
(39,294 |
) |
Non-cash stock-based compensation |
|
|
2,455 |
|
|
|
2,309 |
|
Impairment expense |
|
|
1,250 |
|
|
|
1,441 |
|
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
- |
|
Adjusted EBITDA (1) |
|
|
175,554 |
|
|
|
169,035 |
|
Exploration expense |
|
|
797 |
|
|
|
1,181 |
|
Adjusted EBITDAX (1) |
|
$ |
176,351 |
|
|
$ |
170,216 |
|
(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 U.S. GAAP and may not be comparable to other similarly titled measures of other companies. |
WHITING PETROLEUM CORPORATION Reconciliation of Net Loss to Adjusted EBITDA and Adjusted EBITDAX (in thousands) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Six Months Ended |
|
|
Six Months Ended |
||||
|
|
June 30, 2021 |
|
|
June 30, 2020 |
||||
Net loss |
|
$ |
(62,435 |
) |
|
|
$ |
(4,202,886 |
) |
Interest expense |
|
|
9,084 |
|
|
|
|
61,675 |
|
Interest income |
|
|
(1 |
) |
|
|
|
- |
|
Income tax benefit |
|
|
- |
|
|
|
|
(1,028 |
) |
Depreciation, depletion and amortization |
|
|
105,347 |
|
|
|
|
267,517 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(3,945 |
) |
Total measure of derivative (gain) loss reported under U.S. GAAP |
|
|
402,102 |
|
|
|
|
(224,739 |
) |
Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs |
|
|
(106,853 |
) |
|
|
|
46,214 |
|
Non-cash stock-based compensation |
|
|
4,764 |
|
|
|
|
2,932 |
|
Impairment expense |
|
|
2,691 |
|
|
|
|
4,154,369 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(25,883 |
) |
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
|
(353 |
) |
Reorganization items, net |
|
|
- |
|
|
|
|
41,813 |
|
Restructuring and other one-time costs (1) |
|
|
- |
|
|
|
|
26,884 |
|
Adjusted EBITDA (2) |
|
|
344,589 |
|
|
|
|
142,570 |
|
Exploration expense |
|
|
1,978 |
|
|
|
|
20,244 |
|
Adjusted EBITDAX (2) |
|
$ |
346,567 |
|
|
|
$ |
162,814 |
|
(1) |
Includes cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for chapter 11 bankruptcy and charges related to a legal settlement. |
|
(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 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 Adjusted Free Cash Flow (in thousands) |
|||||||||
|
|
|
|
|
|
|
|||
|
|
Successor |
|||||||
|
|
Three Months Ended |
|||||||
|
|
June 30, 2021 |
March 31, 2021 |
||||||
Net cash provided by operating activities |
|
$ |
183,246 |
|
|
$ |
153,193 |
|
|
Changes in working capital |
|
|
(13,483 |
) |
|
|
10,653 |
|
|
Capital expenditures |
|
|
(58,468 |
) |
|
|
(55,602 |
) |
|
Adjusted free cash flow (1) |
|
$ |
111,295 |
|
|
$ |
108,244 |
|
|
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Six Months Ended |
|
|
Six Months Ended |
||||
|
|
June 30, 2021 |
|
|
June 30, 2020 |
||||
Net cash provided by operating activities |
|
$ |
336,439 |
|
|
|
$ |
67,262 |
|
Changes in working capital |
|
|
(2,830 |
) |
|
|
|
(8,553 |
) |
Capital expenditures |
|
|
(114,070 |
) |
|
|
|
(178,596 |
) |
Adjusted free cash flow (1) |
|
$ |
219,539 |
|
|
|
$ |
(119,887 |
) |
| (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 U.S. GAAP and may not be comparable to other similarly titled measures of other companies. The Company is unable to present a reconciliation of forward-looking adjusted free cash flow because components of the calculation, including fluctuations in working capital accounts, are inherently unpredictable. Moreover, estimating the most directly comparable GAAP measure with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. The Company believes that forward-looking estimates of adjusted free cash flow are important to investors because they assist in the analysis of its ability to generate cash from our operations. |
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 production, cash flows, revenues, costs, capital expenditures and debt levels, the effect of acquisitions and divestitures and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “guidance,” or 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 bankruptcy; declines in, or extended periods of low oil, NGL or natural gas prices; the occurrence of epidemic or pandemic diseases, including the coronavirus pandemic; actions of the Organization of Petroleum Exporting Countries and other oil exporting nations to set and maintain production levels; the potential shutdown of the Dakota Access Pipeline; our level of success in development and production activities; impacts resulting from the allocation of resources among our strategic opportunities; our ability to replace our oil and natural gas reserves; the geographic concentration of our operations; our inability to access oil and gas markets due to market conditions or operational impediments; market availability of, and risks associated with, transport of oil and gas; weakened differentials impacting the price we receive for oil and natural gas; our ability to successfully complete asset acquisitions and dispositions and the risks related thereto; the impacts of hedging on our results of operations; our ability to use net operating loss carryforwards in future periods; shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; the timing of our development expenditures; properties that we acquire may not produce as projected and may have unidentified liabilities; adverse weather conditions that may negatively impact development or production activities; we may incur substantial losses and be subject to liability claims as a result of our oil and gas operations, including uninsured or underinsured losses resulting from our oil and gas operations; lack of control over non-operated properties; unforeseen underperformance of or liabilities associated with acquired properties or other strategic partnerships or investments; competition in the oil and gas industry; cybersecurity attacks or failures of our telecommunication and other information technology infrastructure; our ability to comply with debt covenants, periodic redeterminations of the borrowing base under 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; 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; impacts to financial statements as a result of impairment write-downs and other cash and noncash charges; the impact of negative shifts in investor sentiment towards the oil and gas industry; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; the Biden administration could enact regulations that impose more onerous permitting and other costly environmental health and safety requirements; 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 perception of our industry and corporate governance standards; negative impacts from litigation and 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, 2020. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.
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