Whiting Petroleum Reports Fourth Quarter and Full Year 2020 Financial and Operating Results
Fourth Quarter and Full-Year 2020 Highlights
-
Revenue was
$212 million and$732 million for the quarter and year endingDecember 31, 2020 , respectively -
Net loss was
$1.2 million or$0.03 per diluted share for the quarter endingDecember 31, 2020 -
Adjusted EBITDAX was
$120 million and$382 million for the quarter and year endingDecember 31, 2020 , respectively (see further discussion regarding the calculation of adjusted EBITDAX in "About Non-GAAP Financial Measures" below)
On
Although GAAP requires that the Company report on results for the Successor Period and Current Predecessor YTD Period separately, our operating results are discussed below for the year ended
Revenue for the fourth quarter of 2020 decreased
Net loss for the fourth quarter of 2020 was
Adjusted EBITDAX for the fourth quarter of 2020 was
Selected Operating and Financial Statistics
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Successor |
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Predecessor |
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Three Months
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Three Months
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Selected operating statistics: |
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Production |
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|
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Oil (MBbl) |
|
|
5,110 |
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|
|
|
7,376 |
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NGLs (MBbl) |
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|
1,546 |
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|
|
1,886 |
|
Natural gas (MMcf) |
|
|
10,709 |
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|
|
|
12,316 |
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Total production (MBOE) |
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|
8,441 |
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|
11,315 |
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Average prices |
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Oil (per Bbl): |
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Price received |
|
$ |
37.89 |
|
|
|
$ |
48.67 |
|
Effect of crude oil hedging (1) |
|
|
(0.55 |
) |
|
|
|
1.36 |
|
Realized price (2) |
|
$ |
37.34 |
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|
|
$ |
50.03 |
|
Weighted average NYMEX price (per Bbl) (3) |
|
$ |
42.59 |
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|
$ |
56.93 |
|
NGLs (per Bbl): |
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Realized price |
|
$ |
6.88 |
|
|
|
$ |
8.79 |
|
Natural gas (per Mcf): |
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Price received |
|
$ |
0.75 |
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|
|
$ |
0.41 |
|
Effect of natural gas hedging (4) |
|
|
(0.20 |
) |
|
|
|
- |
|
Realized price |
|
$ |
0.55 |
|
|
|
$ |
0.41 |
|
Weighted average NYMEX price (per MMBtu) (3) |
|
$ |
2.51 |
|
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|
$ |
2.44 |
|
Selected operating metrics |
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Sales price, net of hedging ($ per BOE) |
|
$ |
24.56 |
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$ |
34.53 |
|
Lease operating ($ per BOE) |
|
|
6.57 |
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|
|
|
6.37 |
|
Transportation, gathering, compression and other ($ per BOE) |
|
|
0.72 |
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|
|
|
0.91 |
|
Depreciation, depletion and amortization ($ per BOE) |
|
|
6.80 |
|
|
|
|
18.06 |
|
General and administrative ($ per BOE) |
|
|
1.35 |
|
|
|
|
3.11 |
|
Production and ad valorem taxes (% of sales revenue) |
|
|
9 |
% |
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|
9 |
% |
__________ |
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(1) |
Whiting paid |
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(2) |
Whiting’s price received for oil was reduced by |
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(3) |
Average NYMEX prices weighted for monthly production volumes. |
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(4) |
Whiting paid |
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Successor |
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Predecessor |
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Non-GAAP |
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Predecessor |
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Four Months
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Eight Months
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Combined
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Year Ended
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Selected operating statistics: |
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Production |
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Oil (MBbl) |
|
|
6,857 |
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|
15,273 |
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|
22,130 |
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|
|
29,811 |
|
NGLs (MBbl) |
|
|
2,104 |
|
|
|
|
4,522 |
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|
|
6,626 |
|
|
|
7,596 |
|
Natural gas (MMcf) |
|
|
14,340 |
|
|
|
|
29,667 |
|
|
|
44,007 |
|
|
|
50,483 |
|
Total production (MBOE) |
|
|
11,351 |
|
|
|
|
24,740 |
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|
36,091 |
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|
45,820 |
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Average prices |
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Oil (per Bbl): |
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Price received |
|
$ |
37.05 |
|
|
|
$ |
28.86 |
|
|
$ |
31.40 |
|
|
$ |
50.06 |
|
Effect of crude oil hedging (1) |
|
|
(0.34 |
) |
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|
|
3.00 |
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|
|
1.96 |
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|
|
0.83 |
|
Realized price (2) |
|
$ |
36.71 |
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$ |
31.86 |
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|
$ |
33.36 |
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$ |
50.89 |
|
Weighted average NYMEX price (per Bbl) (3) |
|
$ |
41.84 |
|
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|
$ |
38.23 |
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$ |
39.35 |
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|
$ |
56.97 |
|
NGLs (per Bbl): |
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|
|
|
|
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|
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Realized price |
|
$ |
5.90 |
|
|
|
$ |
4.45 |
|
|
$ |
4.91 |
|
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$ |
6.76 |
|
Natural gas (per Mcf): |
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Price received |
|
$ |
0.48 |
|
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|
$ |
(0.06 |
) |
|
$ |
0.11 |
|
|
$ |
0.57 |
|
Effect of natural gas hedging (4) |
|
|
(0.11 |
) |
|
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
- |
|
Realized price |
|
$ |
0.37 |
|
|
|
$ |
(0.07 |
) |
|
$ |
0.07 |
|
|
$ |
0.57 |
|
Weighted average NYMEX price (per MMBtu) (3) |
|
$ |
2.44 |
|
|
|
$ |
1.76 |
|
|
$ |
1.98 |
|
|
$ |
2.58 |
|
Selected operating metrics |
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Sales price, net of hedging ($ per BOE) |
|
$ |
23.74 |
|
|
|
$ |
20.39 |
|
|
$ |
21.44 |
|
|
$ |
34.86 |
|
Lease operating ($ per BOE) |
|
|
6.52 |
|
|
|
|
6.40 |
|
|
|
6.43 |
|
|
|
7.17 |
|
Transportation, gathering, compression and other ($ per BOE) |
|
|
0.71 |
|
|
|
|
0.90 |
|
|
|
0.84 |
|
|
|
0.93 |
|
Depreciation, depletion and amortization ($ per BOE) |
|
|
6.83 |
|
|
|
|
13.69 |
|
|
|
11.53 |
|
|
|
17.82 |
|
General and administrative ($ per BOE) |
|
|
1.91 |
|
|
|
|
3.71 |
|
|
|
3.15 |
|
|
|
2.89 |
|
Production and ad valorem taxes (% of sales revenue) |
|
|
9 |
% |
|
|
|
9 |
% |
|
|
9 |
% |
|
|
9 |
% |
____________ | ||
(1) |
Whiting received |
|
(2) |
Whiting’s realized oil prices were reduced by |
|
(3) |
Average NYMEX prices weighted for monthly production volumes. |
|
(4) |
Whiting paid |
Liquidity
As of
Commodity Price Hedging
Whiting currently has approximately 70% of its forecasted crude oil production and 75% of its natural gas production hedged for 2021. The Company uses commodity hedges in order to reduce the effects of commodity price volatility and to adhere to the requirements of its credit facility. The following table summarizes Whiting’s hedging positions as of
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Weighted Average Prices |
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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 |
|
Swap Price |
|
Floor |
|
Ceiling |
Crude Oil |
|
|
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|
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|
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2021(1) |
|
NYMEX WTI |
|
Fixed Price Swaps |
|
5,523 |
|
MBbl |
|
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|
- |
|
- |
2021(1) |
|
NYMEX WTI |
|
Two-way Collars |
|
6,212 |
|
MBbl |
|
- |
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|
|
|
2022 |
|
NYMEX WTI |
|
Fixed Price Swaps |
|
630 |
|
MBbl |
|
|
|
- |
|
- |
2022 |
|
NYMEX WTI |
|
Two-way Collars |
|
8,460 |
|
MBbl |
|
- |
|
|
|
|
2023(2) |
|
NYMEX WTI |
|
Two-way Collars |
|
1,980 |
|
MBbl |
|
- |
|
|
|
|
|
|
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Total |
|
22,805 |
|
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|
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|
|
Natural Gas |
|
|
|
|
|
|
|
|
|
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|
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|
2021(3) |
|
NYMEX Henry Hub |
|
Fixed Price Swaps |
|
16,290 |
|
BBtu |
|
|
|
- |
|
- |
2021(3) |
|
NYMEX Henry Hub |
|
Two-way Collars |
|
9,180 |
|
BBtu |
|
- |
|
|
|
|
2022 |
|
NYMEX Henry Hub |
|
Fixed Price Swaps |
|
3,390 |
|
BBtu |
|
|
|
- |
|
- |
2022 |
|
NYMEX Henry Hub |
|
Two-way Collars |
|
10,720 |
|
BBtu |
|
- |
|
|
|
|
2023(2) |
|
NYMEX Henry Hub |
|
Two-way Collars |
|
1,800 |
|
BBtu |
|
- |
|
|
|
|
|
|
|
|
Total |
|
41,380 |
|
|
|
|
|
|
|
|
____________ | ||
(1) |
Includes settlement periods of February through |
|
(2) |
Includes settlement periods of January through |
|
(3) |
Includes settlement periods of March through |
Outlook for Full-Year 2021
The following table summarizes the Company’s previously provided 2021 guidance, which was based on
|
|
Full-Year 2021 Guidance |
Production (MBOE per day) |
|
82 - 88 |
Oil production (MBO per day) |
|
48 - 52 |
Capital expenditures (MM) |
|
|
Lease operating expense (MM) |
|
|
General and administrative cash expense (MM) |
|
|
The Company currently has one drilling rig operating in its
Management Comment
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://dpregister.com/sreg/10152247/e26abb863d
Replay Information:
Conference ID #: 10152247
Replay Dial-In (Toll Free
Replay Dial-In (International): (412) 317-0088
Expiration Date:
Selected Financial Data
For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation’s Annual Report on Form 10‑K for the year ended
|
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Successor |
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Predecessor |
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Three Months
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Three Months
|
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Selected financial data: |
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|
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(In thousands, except per share data) |
|
|
|
|
|
|
|
||
Total operating revenues |
|
$ |
212,274 |
|
|
|
$ |
380,601 |
|
Total operating expenses |
|
|
207,502 |
|
|
|
|
412,454 |
|
Total other expense, net |
|
|
5,822 |
|
|
|
|
42,041 |
|
Net loss |
|
|
(1,197 |
) |
|
|
|
(147,487 |
) |
Per basic share |
|
|
(0.03 |
) |
|
|
|
(1.62 |
) |
Per diluted share |
|
|
(0.03 |
) |
|
|
|
(1.62 |
) |
Adjusted net income (loss) (1) |
|
|
55,543 |
|
|
|
|
(20,414 |
) |
Per basic share |
|
|
1.46 |
|
|
|
|
(0.22 |
) |
Per diluted share |
|
|
1.46 |
|
|
|
|
(0.22 |
) |
Adjusted EBITDAX (1) |
|
|
119,825 |
|
|
|
|
240,872 |
|
____________ |
||
(1) |
Reconciliations of net loss to adjusted net income (loss) and adjusted EBITDAX are included later in this news release. |
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|||
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Successor |
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Predecessor |
|
Non-GAAP |
|
Predecessor |
|||||||
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
|
Year Ended
|
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Selected financial data: |
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|
|||
(In thousands, except per share data) |
|
|
|
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|
|
|
|
|
|
|
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|
|||
Total operating revenues |
|
$ |
273,358 |
|
|
$ |
459,004 |
|
|
$ |
732,362 |
|
|
$ |
1,572,245 |
|
Total operating expenses |
|
|
238,379 |
|
|
|
4,651,298 |
|
|
|
4,889,677 |
|
|
|
1,559,576 |
|
Total other (income) expense, net |
|
|
7,944 |
|
|
|
(170,459 |
) |
|
|
(162,515 |
) |
|
|
181,615 |
|
Net income (loss) |
|
|
39,073 |
|
|
|
(3,965,461 |
) |
|
|
(3,926,388 |
) |
|
|
(241,166 |
) |
Per basic share (1) |
|
|
1.03 |
|
|
|
(43.37 |
) |
|
|
(103.11 |
) |
|
|
(2.64 |
) |
Per diluted share (1) |
|
|
1.03 |
|
|
|
(43.37 |
) |
|
|
(103.11 |
) |
|
|
(2.64 |
) |
Adjusted net income (loss) (2) |
|
|
63,794 |
|
|
|
(209,656 |
) |
|
|
(145,862 |
) |
|
|
(78,236 |
) |
Per basic share (1) |
|
|
1.68 |
|
|
|
(2.29 |
) |
|
|
(3.83 |
) |
|
|
(0.86 |
) |
Per diluted share (1) |
|
|
1.67 |
|
|
|
(2.29 |
) |
|
|
(3.83 |
) |
|
|
(0.86 |
) |
Adjusted EBITDAX (2) |
|
|
154,521 |
|
|
|
227,580 |
|
|
|
382,101 |
|
|
|
979,048 |
|
____________ | ||
(1) |
For the combined year ended |
|
(2) |
Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release. |
|
|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
|||||||||
(in thousands, except share and per share data) |
|||||||||
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|
|
|
||
|
|
Successor |
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|
Predecessor |
||||
|
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|
||||
|
|
2020 |
|
|
2019 |
||||
ASSETS |
|
|
|
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|
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Current assets: |
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
25,607 |
|
|
|
$ |
8,652 |
|
Restricted cash |
|
|
2,760 |
|
|
|
|
- |
|
Accounts receivable trade, net |
|
|
142,830 |
|
|
|
|
308,249 |
|
Prepaid expenses and other |
|
|
19,224 |
|
|
|
|
14,082 |
|
Total current assets |
|
|
190,421 |
|
|
|
|
330,983 |
|
Property and equipment: |
|
|
|
|
|
|
|
||
Oil and gas properties, successful efforts method |
|
|
1,812,601 |
|
|
|
|
12,812,007 |
|
Other property and equipment |
|
|
74,064 |
|
|
|
|
178,689 |
|
Total property and equipment |
|
|
1,886,665 |
|
|
|
|
12,990,696 |
|
Less accumulated depreciation, depletion and amortization |
|
|
(73,869 |
) |
|
|
|
(5,735,239 |
) |
Total property and equipment, net |
|
|
1,812,796 |
|
|
|
|
7,255,457 |
|
Other long-term assets |
|
|
40,723 |
|
|
|
|
50,281 |
|
TOTAL ASSETS |
|
$ |
2,043,940 |
|
|
|
$ |
7,636,721 |
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
(in thousands, except share and per share data) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|||
|
|
|
|
|
|
|||
|
|
2020 |
|
|
2019 |
|||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable trade |
|
$ |
23,697 |
|
|
$ |
80,100 |
|
Revenues and royalties payable |
|
|
151,196 |
|
|
|
202,010 |
|
Accrued capital expenditures |
|
|
20,155 |
|
|
|
64,263 |
|
Accrued liabilities and other |
|
|
36,170 |
|
|
|
53,597 |
|
Accrued lease operating expenses |
|
|
23,457 |
|
|
|
38,262 |
|
Accrued interest |
|
|
476 |
|
|
|
53,928 |
|
Taxes payable |
|
|
11,997 |
|
|
|
26,844 |
|
Derivative liabilities |
|
|
49,485 |
|
|
|
10,285 |
|
Accrued employee compensation and benefits |
|
|
5,361 |
|
|
|
21,125 |
|
Total current liabilities |
|
|
321,994 |
|
|
|
550,414 |
|
Long-term debt |
|
|
360,000 |
|
|
|
2,799,885 |
|
Asset retirement obligations |
|
|
91,864 |
|
|
|
131,208 |
|
Operating lease obligations |
|
|
17,415 |
|
|
|
31,722 |
|
Deferred income taxes |
|
|
- |
|
|
|
73,593 |
|
Other long-term liabilities |
|
|
23,863 |
|
|
|
24,928 |
|
Total liabilities |
|
|
815,136 |
|
|
|
3,611,750 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Predecessor common stock, |
|
|
- |
|
|
|
92 |
|
Successor common stock, |
|
|
38 |
|
|
|
- |
|
Additional paid-in capital |
|
|
1,189,693 |
|
|
|
6,409,991 |
|
Accumulated earnings (deficit) |
|
|
39,073 |
|
|
|
(2,385,112 |
) |
Total equity |
|
|
1,228,804 |
|
|
|
4,024,971 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
2,043,940 |
|
|
$ |
7,636,721 |
|
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||||
(in thousands, except per share data) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Three Months
|
|
|
Three Months
|
||||
OPERATING REVENUES |
|
|
|
|
|
|
|
||
Oil, NGL and natural gas sales |
|
$ |
212,274 |
|
|
|
$ |
380,601 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||
Lease operating expenses |
|
|
55,455 |
|
|
|
|
72,043 |
|
Transportation, gathering, compression and other |
|
|
6,058 |
|
|
|
|
10,293 |
|
Production and ad valorem taxes |
|
|
18,242 |
|
|
|
|
35,416 |
|
Depreciation, depletion and amortization |
|
|
57,392 |
|
|
|
|
204,322 |
|
Exploration and impairment |
|
|
3,658 |
|
|
|
|
10,693 |
|
General and administrative |
|
|
11,389 |
|
|
|
|
35,172 |
|
Derivative loss, net |
|
|
55,308 |
|
|
|
|
46,338 |
|
Loss on sale of properties |
|
|
- |
|
|
|
|
283 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(2,106 |
) |
Total operating expenses |
|
|
207,502 |
|
|
|
|
412,454 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
4,772 |
|
|
|
|
(31,853 |
) |
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
||
Interest expense |
|
|
(5,952 |
) |
|
|
|
(45,773 |
) |
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
3,232 |
|
Interest income and other |
|
|
130 |
|
|
|
|
500 |
|
Reorganization items, net |
|
|
- |
|
|
|
|
- |
|
Total other income (expense) |
|
|
(5,822 |
) |
|
|
|
(42,041 |
) |
LOSS BEFORE INCOME TAXES |
|
|
(1,050 |
) |
|
|
|
(73,894 |
) |
INCOME TAX EXPENSE |
|
|
|
|
|
|
- |
|
|
Current |
|
|
147 |
|
|
|
|
- |
|
Deferred |
|
|
- |
|
|
|
|
73,593 |
|
Income tax expense |
|
|
147 |
|
|
|
|
73,593 |
|
NET LOSS |
|
$ |
(1,197 |
) |
|
|
$ |
(147,487 |
) |
LOSS PER COMMON SHARE |
|
|
|
|
|
|
|
||
Basic |
|
$ |
(0.03 |
) |
|
|
$ |
(1.62 |
) |
Diluted |
|
$ |
(0.03 |
) |
|
|
$ |
(1.62 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
||
Basic |
|
|
38,090 |
|
|
|
|
91,317 |
|
Diluted |
|
|
38,090 |
|
|
|
|
91,317 |
|
|
|||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
||||||||
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
|
Year Ended
|
||||||||
OPERATING REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil, NGL and natural gas sales |
|
$ |
273,358 |
|
|
|
$ |
459,004 |
|
|
$ |
732,362 |
|
|
$ |
1,572,245 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lease operating expenses |
|
|
73,981 |
|
|
|
|
158,228 |
|
|
|
232,209 |
|
|
|
328,427 |
|
Transportation, gathering, compression and other |
|
|
8,038 |
|
|
|
|
22,266 |
|
|
|
30,304 |
|
|
|
42,438 |
|
Production and ad valorem taxes |
|
|
24,150 |
|
|
|
|
41,204 |
|
|
|
65,354 |
|
|
|
138,212 |
|
Depreciation, depletion and amortization |
|
|
77,502 |
|
|
|
|
338,757 |
|
|
|
416,259 |
|
|
|
816,488 |
|
Exploration and impairment |
|
|
7,865 |
|
|
|
|
4,184,830 |
|
|
|
4,192,695 |
|
|
|
54,738 |
|
General and administrative |
|
|
21,734 |
|
|
|
|
91,816 |
|
|
|
113,550 |
|
|
|
132,609 |
|
Derivative (gain) loss, net |
|
|
24,714 |
|
|
|
|
(181,614 |
) |
|
|
(156,900 |
) |
|
|
53,769 |
|
Loss on sale of properties |
|
|
395 |
|
|
|
|
927 |
|
|
|
1,322 |
|
|
|
1,964 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(5,116 |
) |
|
|
(5,116 |
) |
|
|
(9,069 |
) |
Total operating expenses |
|
|
238,379 |
|
|
|
|
4,651,298 |
|
|
|
4,889,677 |
|
|
|
1,559,576 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
34,979 |
|
|
|
|
(4,192,294 |
) |
|
|
(4,157,315 |
) |
|
|
12,669 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(8,080 |
) |
|
|
|
(73,054 |
) |
|
|
(81,134 |
) |
|
|
(191,047 |
) |
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
25,883 |
|
|
|
25,883 |
|
|
|
7,830 |
|
Interest income and other |
|
|
136 |
|
|
|
|
211 |
|
|
|
347 |
|
|
|
1,602 |
|
Reorganization items, net |
|
|
- |
|
|
|
|
217,419 |
|
|
|
217,419 |
|
|
|
- |
|
Total other income (expense) |
|
|
(7,944 |
) |
|
|
|
170,459 |
|
|
|
162,515 |
|
|
|
(181,615 |
) |
INCOME (LOSS) BEFORE INCOME TAXES |
|
|
27,035 |
|
|
|
|
(4,021,835 |
) |
|
|
(3,994,800 |
) |
|
|
(168,946 |
) |
INCOME TAX EXPENSE (BENEFIT) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current |
|
|
2,463 |
|
|
|
|
2,718 |
|
|
|
5,181 |
|
|
|
- |
|
Deferred |
|
|
(14,501 |
) |
|
|
|
(59,092 |
) |
|
|
(73,593 |
) |
|
|
72,220 |
|
Income tax expense (benefit) |
|
|
(12,038 |
) |
|
|
|
(56,374 |
) |
|
|
(68,412 |
) |
|
|
72,220 |
|
NET INCOME (LOSS) |
|
$ |
39,073 |
|
|
|
$ |
(3,965,461 |
) |
|
$ |
(3,926,388 |
) |
|
$ |
(241,166 |
) |
INCOME (LOSS) PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
1.03 |
|
|
|
$ |
(43.37 |
) |
|
$ |
(103.11 |
) |
|
$ |
(2.64 |
) |
Diluted |
|
$ |
1.03 |
|
|
|
$ |
(43.37 |
) |
|
$ |
(103.11 |
) |
|
$ |
(2.64 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
38,080 |
|
|
|
|
91,423 |
|
|
|
38,080 |
|
|
|
91,285 |
|
Diluted |
|
|
38,119 |
|
|
|
|
91,423 |
|
|
|
38,080 |
|
|
|
91,285 |
|
About Non-GAAP Financial Measures
|
|||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) |
|||||||||
(in thousands, except per share data) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Three Months
|
|
|
Three Months
|
||||
Net loss |
|
$ |
(1,197 |
) |
|
|
$ |
(147,487 |
) |
Adjustments: |
|
|
|
|
|
|
|
||
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(2,106 |
) |
Loss on sale of properties |
|
|
- |
|
|
|
|
283 |
|
Impairment expense |
|
|
3,233 |
|
|
|
|
2,137 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(3,232 |
) |
Total measure of derivative loss reported under |
|
|
55,308 |
|
|
|
|
46,338 |
|
Total net cash settlements received (paid) on commodity derivatives during the period |
|
|
(4,973 |
) |
|
|
|
10,060 |
|
Restructuring and other significant cost drivers (1) |
|
|
3,025 |
|
|
|
|
- |
|
Tax impact of basis difference for |
|
|
147 |
|
|
|
|
73,593 |
|
Adjusted net income (loss) (2) |
|
$ |
55,543 |
|
|
|
$ |
(20,414 |
) |
Adjusted net income (loss) per share, basic |
|
$ |
1.46 |
|
|
|
$ |
(0.22 |
) |
Adjusted net income (loss) per share, diluted |
|
$ |
1.46 |
|
|
|
$ |
(0.22 |
) |
____________ |
||
(1) |
Includes charges related to a legal settlement as well as third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. |
|
(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 |
|
|||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) |
|||||||||||||||||
(in thousands, except per share data) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
||||||||
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
|
Year Ended
|
||||||||
Net income (loss) |
|
$ |
39,073 |
|
|
|
$ |
(3,965,461 |
) |
|
$ |
(3,926,388 |
) |
|
$ |
(241,166 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(5,116 |
) |
|
|
(5,116 |
) |
|
|
(9,069 |
) |
Loss on sale of properties |
|
|
395 |
|
|
|
|
927 |
|
|
|
1,322 |
|
|
|
1,964 |
|
Impairment expense |
|
|
3,233 |
|
|
|
|
4,161,885 |
|
|
|
4,165,118 |
|
|
|
17,866 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(25,883 |
) |
|
|
(25,883 |
) |
|
|
(7,830 |
) |
Total measure of derivative (gain) loss reported under |
|
|
24,714 |
|
|
|
|
(181,614 |
) |
|
|
(156,900 |
) |
|
|
53,769 |
|
Total net cash settlements received (paid) on commodity derivatives during the period |
|
|
(3,942 |
) |
|
|
|
45,483 |
|
|
|
41,541 |
|
|
|
24,857 |
|
Reorganization items, net |
|
|
- |
|
|
|
|
(217,419 |
) |
|
|
(217,419 |
) |
|
|
- |
|
Restructuring and other significant cost drivers (1) |
|
|
12,359 |
|
|
|
|
32,888 |
|
|
|
45,247 |
|
|
|
7,780 |
|
Tax impact of basis difference for |
|
|
(12,038 |
) |
|
|
|
(55,346 |
) |
|
|
(67,384 |
) |
|
|
73,593 |
|
Adjusted net income (loss) (2) |
|
$ |
63,794 |
|
|
|
$ |
(209,656 |
) |
|
$ |
(145,862 |
) |
|
$ |
(78,236 |
) |
Adjusted net income (loss) per share, basic (3) |
|
$ |
1.68 |
|
|
|
$ |
(2.29 |
) |
|
$ |
(3.83 |
) |
|
$ |
(0.86 |
) |
Adjusted net income (loss) per share, diluted (3) |
|
$ |
1.67 |
|
|
|
$ |
(2.29 |
) |
|
$ |
(3.83 |
) |
|
$ |
(0.86 |
) |
____________ |
||
(1) |
Includes severance and restructuring charges incurred during two separate company restructurings 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 (Loss) to Adjusted EBITDA and Adjusted EBITDAX |
|||||||||
(in thousands) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Three Months
|
|
|
Three Months
|
||||
Net loss |
|
$ |
(1,197 |
) |
|
|
$ |
(147,487 |
) |
Interest expense |
|
|
5,952 |
|
|
|
|
45,773 |
|
Interest income |
|
|
(2 |
) |
|
|
|
- |
|
Income tax expense |
|
|
147 |
|
|
|
|
73,593 |
|
Depreciation, depletion and amortization |
|
|
57,392 |
|
|
|
|
204,322 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(2,106 |
) |
Total measure of derivative loss reported under |
|
|
55,308 |
|
|
|
|
46,338 |
|
Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs |
|
|
(4,973 |
) |
|
|
|
10,060 |
|
Non-cash stock-based compensation |
|
|
515 |
|
|
|
|
2,635 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(3,232 |
) |
Loss on sale of properties |
|
|
- |
|
|
|
|
283 |
|
Impairment expense |
|
|
3,233 |
|
|
|
|
2,136 |
|
Restructuring and other significant cost drivers (1) |
|
|
3,025 |
|
|
|
|
- |
|
Adjusted EBITDA (2) |
|
|
119,400 |
|
|
|
|
232,315 |
|
Exploration expense |
|
|
425 |
|
|
|
|
8,557 |
|
Adjusted EBITDAX (2) |
|
$ |
119,825 |
|
|
|
$ |
240,872 |
____________ |
||
(1) |
Includes charges related to a legal settlement as well as third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. |
|
(2) |
Adjusted EBITDA and Adjusted EBITDAX are non-GAAP measures. Such measures are presented because management believes they provide useful information to investors for analysis of the Company’s ability to internally fund debt service, working capital requirements, acquisitions and exploration and development. 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 |
|
Predecessor |
||||||||
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
|
Year Ended
|
||||||||
Net income (loss) |
|
$ |
39,073 |
|
|
|
$ |
(3,965,461 |
) |
|
$ |
(3,926,388 |
) |
|
$ |
(241,166 |
) |
Interest expense |
|
|
8,080 |
|
|
|
|
73,054 |
|
|
|
81,134 |
|
|
|
191,047 |
|
Interest income |
|
|
(2 |
) |
|
|
|
(211 |
) |
|
|
(213 |
) |
|
|
(2 |
) |
Income tax expense (benefit) |
|
|
(12,038 |
) |
|
|
|
(56,374 |
) |
|
|
(68,412 |
) |
|
|
72,220 |
|
Depreciation, depletion and amortization |
|
|
77,502 |
|
|
|
|
338,757 |
|
|
|
416,259 |
|
|
|
816,488 |
|
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(5,116 |
) |
|
|
(5,116 |
) |
|
|
(9,069 |
) |
Total measure of derivative (gain) loss reported under |
|
|
24,714 |
|
|
|
|
(181,614 |
) |
|
|
(156,900 |
) |
|
|
53,769 |
|
Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs |
|
|
(3,942 |
) |
|
|
|
45,483 |
|
|
|
41,541 |
|
|
|
24,857 |
|
Non-cash stock-based compensation |
|
|
515 |
|
|
|
|
3,719 |
|
|
|
4,234 |
|
|
|
7,721 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(25,883 |
) |
|
|
(25,883 |
) |
|
|
(7,830 |
) |
Loss on sale of properties |
|
|
395 |
|
|
|
|
927 |
|
|
|
1,322 |
|
|
|
1,964 |
|
Impairment expense |
|
|
3,233 |
|
|
|
|
4,161,885 |
|
|
|
4,165,118 |
|
|
|
17,866 |
|
Reorganization items, net |
|
|
- |
|
|
|
|
(217,419 |
) |
|
|
(217,419 |
) |
|
|
- |
|
Restructuring and other significant cost drivers (1) |
|
|
12,359 |
|
|
|
|
32,888 |
|
|
|
45,247 |
|
|
|
14,311 |
|
Adjusted EBITDA (2) |
|
|
149,889 |
|
|
|
|
204,635 |
|
|
|
354,524 |
|
|
|
942,176 |
|
Exploration expense |
|
|
4,632 |
|
|
|
|
22,945 |
|
|
|
27,577 |
|
|
|
36,872 |
|
Adjusted EBITDAX (2) |
|
$ |
154,521 |
|
|
|
$ |
227,580 |
|
|
$ |
382,101 |
|
|
$ |
979,048 |
____________ |
||
(1) |
Includes severance and restructuring charges incurred during two separate company restructurings in |
|
(2) |
Adjusted EBITDA and Adjusted EBITDAX are non-GAAP measures. Such measures are presented because management believes they provide useful information to investors for analysis of the Company’s ability to internally fund debt service, working capital requirements, acquisitions and exploration and development. 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 Discretionary Cash Flow and |
|||||||||
Free Cash Flow |
|||||||||
(in thousands) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Three Months
|
|
|
Three Months
|
||||
Net cash provided by operating activities |
|
$ |
70,528 |
|
|
|
$ |
235,035 |
|
Changes in working capital |
|
|
39,314 |
|
|
|
|
(46,352 |
) |
Capital expenditures |
|
|
(20,504 |
) |
|
|
|
(102,702 |
) |
Free cash flow (1) |
|
$ |
89,338 |
|
|
|
$ |
85,981 |
|
|
|
Successor |
|
|
Predecessor |
|
Non-GAAP |
|
Predecessor |
||||||||
|
|
Four Months
|
|
|
Eight Months
|
|
Combined
|
|
Year Ended
|
||||||||
Net cash provided by operating activities |
|
$ |
82,168 |
|
|
|
$ |
112,613 |
|
|
$ |
194,781 |
|
|
$ |
755,960 |
|
Changes in working capital |
|
|
44,318 |
|
|
|
|
(59,815 |
) |
|
|
(15,497 |
) |
|
|
7,848 |
|
Capital expenditures |
|
|
(23,993 |
) |
|
|
|
(185,362 |
) |
|
|
(209,355 |
) |
|
|
(778,254 |
) |
Free cash flow (1) |
|
$ |
102,493 |
|
|
|
$ |
(132,564 |
) |
|
$ |
(30,071 |
) |
|
$ |
(14,446 |
) |
____________ |
||
(1) |
Free cash flow is a non-GAAP measure. Such 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. Such 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 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 coronavirus pandemic; actions of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20210224006049/en/
Company Contact:
Title: Investor Relations Manager
Phone: 303‑837‑1661
Email: Brandond@whiting.com
Source: