Whiting Petroleum Provides Preliminary Fourth Quarter 2020 Results and Oil and Gas Reserves, Discloses Executive Compensation Framework and Schedules Fourth Quarter 2020 Conference Call
3 Months Ended |
12 Months Ended |
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Average Daily Volumes |
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Oil Production (MBO/d) |
55.5 |
60.5 |
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Total Production (MBOE/d) |
91.7 |
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98.6 |
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Oil % |
61% |
61% |
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Product Price Received (before hedging) |
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Crude oil ($/Bbl) |
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NGL Price ($/Bbl) |
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Natural Gas ($/Mcf) |
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Differentials |
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NYMEX WTI ($/Bbl) |
( |
( |
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Natural Gas Liquids (% of WTI) |
18% |
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16% |
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NYMEX Henry Hub ($/Mcf) |
( |
( |
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Expenses ($MM) |
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Lease Operating Expense |
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Transportation, Gathering Compression and other Expense |
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General and Administrative |
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Activity Summary |
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Capital Expenditures ($MM) |
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Operated Wells Drilled (Gross/Net) |
0 / 0.0 |
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35 / 24.0 |
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Operated Wells Completed (Gross/Net) |
4 / 2.6 |
45 / 29.0 |
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Operated Wells Turned in-line (Gross/Net) |
5 / 3.9 |
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48 / 29.6 |
For the fourth quarter of 2020, oil production exceeded the high end of the Company’s guidance as it was positively impacted by a higher oil percentage from wells turned in line during the quarter, as well as a slightly lower decline rate on base production. The Company also benefited from mild weather allowing for continuous workover activity.
Lease operating expense was lower than guidance primarily due to less well repair activity, primarily related to extended ESP run times. Capital expenditures were also slightly lower than expected due to the timing of some facility expenditures and completion activity. The Company continues to benefit in both areas from its cost-cutting measures and renegotiated contract terms.
General and administrative expenses included restructuring and related non-recurring costs totaling approximately
Proved Reserves
As of
The following table summarizes by area, 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 |
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NGLs |
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Gas |
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Total |
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% |
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Value (2) |
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Area |
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(MMBbl) |
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(MMBbl) |
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(Bcf) |
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(MMBOE) |
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Oil |
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(in millions) |
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154.2 |
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44.7 |
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281.1 |
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245.8 |
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63 |
% |
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$ |
1,113 |
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9.0 |
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1.7 |
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22.5 |
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14.4 |
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63 |
% |
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84 |
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Total |
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163.2 |
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46.4 |
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303.6 |
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260.2 |
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63 |
% |
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$ |
1,197 |
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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 |
Executive Compensation
Whiting also announced recent changes to its executive compensation program which are designed to implement an industry-leading compensation structure that aligns earned payments with shareholder interests. Relative to historical industry practice, the new structure prioritizes greater alignment with absolute returns to shareholders and places a greater emphasis on free cash flow.
Key features of the new compensation structure include:
- Short-term incentive metrics focused on returns and long-term cash generation;
- Mandatory stock settlement for our CEO, CFO and COO of any portion of the short-term incentive paid above target;
- Long-term incentives heavily weighted toward performance-based awards (70% for our CEO, 60% for our CFO and COO);
- Use of absolute total stockholder return as the sole performance metric for a significant portion of our performance-based long-term incentives;
- In the event of a change in control, payment of one third of the CEO severance will be in stock with a mandatory post-termination holding period.
Management Comment
Reflecting on the recent increase in oil prices Peterson noted, “Using an oil price of
Other Business
On
Conference Call
WLL will host a conference call on
To participate in this call please dial:
International Dial-in Number: (412) 317-5422
Webcast URL: https://dpregister.com/sreg/10152247/e26abb863d
Replay Information:
Conference ID #: 10152247
Replay Dial-In (Toll Free US &
Replay Dial-In (International): (412) 317-0088
Expiration Date:
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 revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.
These risks and uncertainties include, but are not limited to: risks associated with our emergence from bankruptcy; declines in, or extended periods of low oil, NGL or natural gas prices; the occurrence of epidemic or pandemic diseases, including the COVID-19 pandemic; actions of
View source version on businesswire.com: https://www.businesswire.com/news/home/20210216006142/en/
Investor Relations Manager
303-837-1661
Brandond@whiting.com
Source: