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November 5, 2020 at 4:01 PM EST

Whiting Petroleum Reports Third Quarter Financial and Operating Results

DENVER--(BUSINESS WIRE)--Nov. 5, 2020-- Whiting Petroleum Corporation (NYSE: WLL) (“Whiting” or the “Company”) today announced third quarter 2020 results.

Third Quarter 2020 Highlights

  • Revenue was $184 million for the quarter ending September 30, 2020
  • Net income was $278 million, or $7.30 per diluted share for the quarter ending September 30, 2020
  • Adjusted EBITDAX was $100 million for the quarter ending September 30, 2020 (see further discussion regarding the presentation of adjusted EBITDAX in "About Non-GAAP Financial Measures" below)
  • Emerged from bankruptcy with a strong balance sheet and liquidity position

On September 1, 2020 (the “Emergence Date”) the Company emerged from voluntary bankruptcy under Chapter 11 of the Bankruptcy Code. Beginning on the Emergence Date, the Company applied fresh start accounting, which resulted in a new basis of accounting, and became a new entity for financial reporting purposes. As a result of the application of fresh start accounting and the effects of the implementation of the Company’s chapter 11 plan of reorganization, the consolidated financial statements after September 1, 2020 are not comparable with the consolidated financial statements on or prior to that date. References to “Successor” refer to the Whiting entity after emergence from bankruptcy on the Emergence Date. References to “Predecessor” refer to the Whiting entity prior to emergence from bankruptcy. References to “Successor Period” refer to the period from September 1, 2020 through September 30, 2020. References to “Current Predecessor Quarter” and “Current Predecessor YTD Period” refer to the periods from July 1, 2020 through August 31, 2020 and January 1, 2020 through August 31, 2020, respectively. References to “Prior Predecessor Quarter” and “Prior Predecessor YTD Period” refer to the three and nine months ended September 30, 2019, respectively.

Although GAAP requires that we report on results for the Successor Period and the Current Predecessor Quarter and Current Predecessor YTD Period separately, our operating results are discussed below for the three and nine months ended September 30, 2020 by combining the results of the applicable Predecessor and Successor periods in order to provide the most meaningful comparison of our current results to prior periods. Accordingly, references to “Combined Current Quarter” and “Combined Current YTD Period” refer to the three and nine months ended September 30, 2020, respectively.

Revenue for the Combined Current Quarter decreased $192 million to $184 million when comparing to the quarter ending September 30, 2019. A decrease in total production accounted for approximately $111 million of the change in revenue and decreases in commodity prices realized accounted for approximately $81 million of the change in revenue between periods.

Net income for the Combined Current Quarter was $278 million, or $7.30 per share, as compared to a net loss of $19 million, or $0.21 per share, in the quarter ended September 30, 2019. Adjusted net loss for the Combined Current Quarter was $13 million or $0.34 per share.

Adjusted EBITDAX for the Combined Current Quarter was $100 million compared to $236 million for the quarter ended September 30, 2019.

 

 

 

 

 

 

 

 

 

Non-GAAP

 

Predecessor

 

 

Combined Three
Months Ended
September 30, 2020

 

Three Months
Ended
September 30, 2019

Selected operating statistics:

 

 

 

 

 

 

Production

 

 

 

 

 

 

Oil (MBbl)

 

 

5,209

 

 

 

7,441

 

NGLs (MBbl)

 

 

1,641

 

 

 

1,830

 

Natural gas (MMcf)

 

 

10,737

 

 

 

12,536

 

Total production (MBOE)

 

 

8,639

 

 

 

11,361

 

Average prices

 

 

 

 

 

 

Oil (per Bbl):

 

 

 

 

 

 

Price received

 

$

34.05

 

 

$

49.71

 

Effect of crude oil hedging (1)

 

 

0.01

 

 

 

1.41

 

Realized price (3)

 

$

34.06

 

 

$

51.12

 

Weighted average NYMEX price (per Bbl) (4)

 

$

40.92

 

 

$

56.43

 

NGLs (per Bbl):

 

 

 

 

 

 

Realized price

 

$

6.48

 

 

$

3.07

 

Natural gas (per Mcf):

 

 

 

 

 

 

Price received

 

$

(0.41

)

 

$

0.03

 

Effect of natural gas hedging (2)

 

 

0.03

 

 

 

-

 

Realized price

 

$

(0.38

)

 

$

0.03

 

Weighted average NYMEX price (per MMBtu) (4)

 

$

1.90

 

 

$

2.29

 

Selected operating metrics

 

 

 

 

 

 

Sales price, net of hedging ($ per BOE)

 

$

21.29

 

 

$

34.01

 

Lease operating ($ per BOE)

 

 

5.92

 

 

 

7.51

 

Transportation, gathering, compression and other ($ per BOE)

 

 

0.72

 

 

 

0.98

 

Depreciation, depletion and amortization ($ per BOE)

 

 

10.57

 

 

 

18.58

 

General and administrative ($ per BOE)

 

 

3.11

 

 

 

2.63

 

Production and ad valorem taxes (% of sales revenue)

 

 

9

%

 

 

9

%

_________________________________

(1)

Whiting received $0.04 million and $10 million in pre-tax cash settlements on crude oil hedges during the three months ended September 30, 2020 and 2019, respectively. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release.

(2)

Whiting received $0.3 million in pre-tax cash settlements on natural gas hedges during the three months ended September 30, 2020. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release.

(3)

Whiting’s realized prices were reduced by $2.38 per Bbl during the three months ended September 30, 2019 due deficiency payments under a contract in our Redtail field. This contract ended in April 2020.

(4)

Average NYMEX prices weighted for monthly production volumes.

Liquidity

Since emergence, the Company paid down approximately $25 million on its revolver. As of September 30, 2020, the Company had $400 million outstanding on its revolver and $14 million in cash resulting in total liquidity of $364 million. Whiting expects to fund its operations fully within operating cash flow through at least 2021.

Commodity Price Hedging

Whiting uses commodity hedges in order to reduce the effects of commodity price volatility and to adhere to the requirements of its credit facility. As of October 30, 2020, the Company has approximately 1.9 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2020, approximately 8.8 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2021 and approximately 3.5 million Bbls of oil hedged at a weighted-average floor price of approximately $38 per Bbl in 2022. Additionally, the Company has approximately 2.2 billion British thermal units (“Bbtu”) of natural gas hedged at a weighted-average floor price of $2.36 per million British thermal units (“MMbtu”) in 2020, approximately 23.5 Bbtu of natural gas hedged at a weighted-average floor price of $2.65 per MMbtu in 2021 and approximately 12.1 Bbtu of natural gas hedged at a weighted-average floor price of $2.38 per MMbtu in 2022. These floor prices are the weighted-average of swaps and the floors of collared transactions.

G & A

G&A expenses decreased to $27 million in the Combined Current Quarter, which includes $15 million of specific costs related to restructuring. This compares to $28 million in the second quarter 2020 and $30 million in the third quarter 2019, which included $11 million and $8 million of non-recurring items, respectively.

Operations

During the second quarter, the Company filed for bankruptcy, at which time all operations were suspended, except for workover operations. This suspension of operations clearly resulted in a steep decline in production over the past two quarters. During the third quarter of 2020, total production averaged 93.9 thousand barrels of oil equivalent per day (“MBOE/d”), of which 60% was crude oil, a decrease of 5% from the second quarter of 2020. Production for the same period of 2019 was 123 MBOE/d.

During the third quarter the Company turned seven wells to production in the Williston Basin. In the fourth quarter of 2020, Whiting expects to turn five additional wells to production as well as commence completion operations on another five wells at year end that will impact 2021 production. The Company expects capital expenditures of $27 million during the fourth quarter, bringing full year capital expenditures to the midpoint of guidance. Due to the timing of wells put on production during the third and fourth quarters, combined with completion work being done near the end of the year, we anticipate fourth quarter production will decline from the third quarter.

LOE declined to $51 million in the Combined Current Quarter from $53 million in the second quarter of 2020. This 4% decrease is primarily due to the company’s focus on saltwater disposal optimization, lower non-op spending and improved rental agreements. This also marked a 40% decrease from the same period in 2019. Whiting continues to focus on costs to improve margins during the current price environment.

Whiting has consistently outperformed the NDIC requirement for gas capture since the regulatory requirement began. In September, Whiting captured 96% of its gas and continues to explore new technologies to reduce overall emissions.

Outlook for Full-Year 2020

The following table provides guidance for the full-year 2020 based on current forecasts.

 

 

 

 

 

Full-Year Guidance

 

 

2020

Production (MBOE/d)

 

98 - 99

Percent Oil

 

60%

Capital Expenditures (MM)

 

$ 213 - $ 218

Lease operating expense (MM)

 

$ 238 - $ 242

Management Comment

Lynn A. Peterson, President and CEO of WLL commented, "The past quarter saw the Company complete its restructuring work and emerge from bankruptcy in September. The Whiting team remained extremely focused during the process and I commend all of our staff for their efforts.”

Peterson added, “We are in a challenging and volatile commodity price environment and we will continue to prioritize cash flow generation. As we look ahead at consensus commodity prices in 2021, our goals will be 1) to maintain production levels near our 2020 exit rate, and 2) operate within internally generated cash flow, which in combination should produce an attractive free cash flow yield. We anticipate holding 2021 spending levels in the same range as our 2020 capital expenditures to achieve these goals. We believe this strategy will create value for the Company's stakeholders while always operating in a safe environment." 

Conference Call

WLL will host a conference call on Friday, November 6, 2020 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time) to discuss the results. The call will be conducted by President and CEO Lynn A. Peterson, CFO James Henderson, COO Charles J. Rimer and IR Manager Brandon Day. A Q&A session will immediately follow the discussion of the results for the quarter.

To participate in this call please dial:
Domestic Dial-in Number: (877) 328-5506
International Dial-in Number: (412) 317-5422
Webcast URL: https://dpregister.com/sreg/10149456/dc153f7610

Replay Information:
Conference ID #: 10149456
Replay Dial-In (Toll Free US & Canada): (877) 344-7529 (U.S.), (855) 669-9658 (Canada)
Replay Dial-In (International): (412) 317-0088
Expiration Date: Friday, November 13, 2020

Selected Operating and Financial Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September
30, 2020

 

 

Eight Months
Ended August
31, 2020

 

Combined
Nine Months
Ended
September 30,
2020

 

Nine Months
Ended
September 30,
2019

Selected operating statistics:

 

 

 

 

 

 

 

 

 

 

 

 

 

Production

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (MBbl)

 

 

1,746

 

 

 

 

15,273

 

 

 

17,020

 

 

 

22,435

 

NGLs (MBbl)

 

 

559

 

 

 

 

4,522

 

 

 

5,081

 

 

 

5,709

 

Natural gas (MMcf)

 

 

3,631

 

 

 

 

29,667

 

 

 

33,299

 

 

 

38,167

 

Total production (MBOE)

 

 

2,910

 

 

 

 

24,740

 

 

 

27,650

 

 

 

34,506

 

Average prices

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (per Bbl):

 

 

 

 

 

 

 

 

 

 

 

 

 

Price received

 

$

34.58

 

 

 

$

28.86

 

 

$

29.45

 

 

$

50.51

 

Effect of crude oil hedging (1)

 

 

0.28

 

 

 

 

3.00

 

 

 

2.72

 

 

 

0.66

 

Realized price (3)

 

$

34.86

 

 

 

$

31.86

 

 

$

32.17

 

 

$

51.17

 

Weighted average NYMEX price (per Bbl) (4)

 

$

39.63

 

 

 

$

38.23

 

 

$

38.37

 

 

$

56.99

 

NGLs (per Bbl):

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized price

 

$

3.19

 

 

 

$

4.45

 

 

$

4.31

 

 

$

6.09

 

Natural gas (per Mcf):

 

 

 

 

 

 

 

 

 

 

 

 

 

Price received

 

$

(0.30

)

 

 

$

(0.06

)

 

$

(0.09

)

 

$

0.62

 

Effect of natural gas hedging (2)

 

 

0.15

 

 

 

 

(0.01

)

 

 

0.01

 

 

 

-

 

Realized price

 

$

(0.15

)

 

 

$

(0.07

)

 

$

(0.08

)

 

$

0.62

 

Weighted average NYMEX price (per MMBtu) (4)

 

$

2.24

 

 

 

$

1.76

 

 

$

1.81

 

 

$

2.62

 

Selected operating metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price, net of hedging ($ per BOE)

 

$

21.34

 

 

 

$

20.39

 

 

$

20.49

 

 

$

34.96

 

Lease operating ($ per BOE)

 

 

6.37

 

 

 

 

6.40

 

 

 

6.39

 

 

 

7.43

 

Transportation, gathering, compression and other ($ per BOE)

 

 

0.68

 

 

 

 

0.90

 

 

 

0.88

 

 

 

0.93

 

Depreciation, depletion and amortization ($ per BOE)

 

 

6.91

 

 

 

 

13.69

 

 

 

12.98

 

 

 

17.74

 

General and administrative ($ per BOE)

 

 

3.55

 

 

 

 

3.71

 

 

 

3.69

 

 

 

2.82

 

Production and ad valorem taxes (% of sales revenue)

 

 

10

%

 

 

 

9

%

 

 

9

%

 

 

9

%

_________________________________

(1)

Whiting received $46 million and $15 million in pre-tax cash settlements on crude oil hedges during the nine months ended September 30, 2020 and 2019, respectively. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” earlier in this release.

(2)

Whiting received $0.3 million in pre-tax cash settlements on natural gas hedges during the nine months ended September 30, 2020. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” earlier in this release.

(3)

Whiting’s realized prices were reduced by $1.42 and $2.05 per Bbl during the nine months ended September 30, 2020 and 2019, respectively, due to the Redtail deficiency payments. This contract ended in April 2020.

(4)

Average NYMEX prices weighted for monthly production volumes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month
Ended
September
30, 2020

 

 

Two Months
Ended August
31, 2020

 

Combined
Three Months
Ended
September 30,
2020

 

Three Months
Ended
September 30,
2019

Selected financial data:

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating revenues

 

$

61,084

 

 

$

122,558

 

 

$

183,642

 

 

$

375,891

 

Total operating expenses

 

 

30,877

 

 

 

188,471

 

 

 

219,348

 

 

 

351,253

 

Total other (income) expense, net

 

 

2,122

 

 

 

(247,992

)

 

 

(245,870

)

 

 

43,705

 

Net income (loss)

 

 

40,270

 

 

 

237,425

 

 

 

277,695

 

 

 

(19,067

)

Per basic share (1)

 

 

1.06

 

 

 

2.60

 

 

 

7.30

 

 

 

(0.21

)

Per diluted share (1)

 

 

1.06

 

 

 

2.60

 

 

 

7.30

 

 

 

(0.21

)

Adjusted net income (loss) (2)

 

 

8,250

 

 

 

(21,130

)

 

 

(12,880

)

 

 

(35,148

)

Per basic share (1)

 

 

0.22

 

 

 

(0.23

)

 

 

(0.34

)

 

 

(0.38

)

Per diluted share (1)

 

 

0.22

 

 

 

(0.23

)

 

 

(0.34

)

 

 

(0.38

)

Adjusted EBITDAX (2)

 

 

34,689

 

 

 

64,838

 

 

 

99,527

 

 

 

235,663

 

_________________________________

(1)

For the combined three months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

(2)

Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month
Ended
September
30, 2020

 

 

Eight Months
Ended August
31, 2020

 

Combined
Nine Months
Ended
September 30,
2020

 

Nine Months
Ended
September 30,
2019

Selected financial data:

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating revenues

 

$

61,084

 

 

$

459,004

 

 

$

520,088

 

 

$

1,191,644

 

Total operating expenses

 

 

30,877

 

 

 

4,651,298

 

 

 

4,682,175

 

 

 

1,147,122

 

Total other (income) expense, net

 

 

2,122

 

 

 

(170,459

)

 

 

(168,337

)

 

 

139,574

 

Net income (loss)

 

 

40,270

 

 

 

(3,965,461

)

 

 

(3,925,191

)

 

 

(93,679

)

Per basic share (1)

 

 

1.06

 

 

 

(43.37

)

 

 

(103.16

)

 

 

(1.03

)

Per diluted share (1)

 

 

1.06

 

 

 

(43.37

)

 

 

(103.16

)

 

 

(1.03

)

Adjusted net income (loss) (2)

 

 

8,250

 

 

 

(209,656

)

 

 

(201,406

)

 

 

(57,821

)

Per basic share (1)

 

 

0.22

 

 

 

(2.29

)

 

 

(5.29

)

 

 

(0.63

)

Per diluted share (1)

 

 

0.22

 

 

 

(2.29

)

 

 

(5.29

)

 

 

(0.63

)

Adjusted EBITDAX (2)

 

 

34,689

 

 

 

227,580

 

 

 

262,269

 

 

 

738,176

 

_________________________________

(1)

For the combined nine months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

(2)

Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release.

Third Quarter and First Nine Month 2020 Costs and Margins

A summary of cash revenues and cash costs on a per BOE basis is as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September
30, 2020

 

 

Two Months
Ended
August 31,
2020

 

Combined
Three Months Ended

September 30,
2020

 

Three Months
Ended
September 30,
2019

Sales price, net of hedging

 

$

20.99

 

 

$

21.39

 

 

$

21.26

 

$

34.01

Gain (loss) on hedging activities

 

 

0.35

 

 

 

(0.13

)

 

 

0.03

 

 

-

Lease operating expense

 

 

6.37

 

 

 

5.70

 

 

 

5.92

 

 

7.51

Transportation, gathering, compression and other

 

 

0.68

 

 

 

0.74

 

 

 

0.72

 

 

0.98

Production and ad valorem tax

 

 

2.03

 

 

 

1.81

 

 

 

1.88

 

 

3.10

Cash general & administrative 

 

 

3.55

 

 

 

2.74

 

 

 

3.02

 

 

2.94

Exploration

 

 

1.45

 

 

 

0.47

 

 

 

0.80

 

 

0.73

Cash interest expense

 

 

0.60

 

 

 

1.33

 

 

 

1.09

 

 

3.56

Cash income tax expense

 

 

0.80

 

 

 

-

 

 

 

0.27

 

 

-

Cash reorganization items

 

 

-

 

 

 

5.32

 

 

 

3.53

 

 

-

 

 

$

5.86

 

 

$

3.15

 

 

$

4.06

 

$

15.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September
30, 2020

 

 

Eight Months
Ended
August 31,
2020

 

Combined
Nine Months
Ended September 30,
2020

 

Nine Months
Ended
September 30,
2019

Sales price, net of hedging

 

$

20.99

 

 

$

18.55

 

$

18.81

 

$

34.96

Gain (loss) on hedging activities

 

 

0.35

 

 

 

1.84

 

 

1.68

 

 

-

Lease operating expense

 

 

6.37

 

 

 

6.40

 

 

6.39

 

 

7.43

Transportation, gathering, compression and other

 

 

0.68

 

 

 

0.90

 

 

0.88

 

 

0.93

Production and ad valorem tax

 

 

2.03

 

 

 

1.67

 

 

1.70

 

 

2.98

Cash general & administrative 

 

 

3.55

 

 

 

3.56

 

 

3.56

 

 

2.68

Exploration

 

 

1.45

 

 

 

0.93

 

 

0.98

 

 

0.82

Cash interest expense

 

 

0.60

 

 

 

2.41

 

 

2.22

 

 

3.52

Cash income tax expense

 

 

0.80

 

 

 

0.11

 

 

0.18

 

 

-

Cash reorganization items

 

 

-

 

 

 

2.31

 

 

2.07

 

 

-

 

 

$

5.86

 

 

$

2.10

 

$

2.51

 

$

16.60

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 September 30, 2020 to be filed with the Securities and Exchange Commission.

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

 

September 30,

 

 

December 31,

 

 

2020

 

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,702

 

 

 

$

8,652

 

Restricted cash

 

 

13,233

 

 

 

 

-

 

Accounts receivable trade, net

 

 

128,577

 

 

 

 

308,249

 

Prepaid expenses and other

 

 

22,056

 

 

 

 

14,082

 

Total current assets

 

 

177,568

 

 

 

 

330,983

 

Property and equipment:

 

 

 

 

 

 

 

Oil and gas properties, successful efforts method

 

 

1,829,472

 

 

 

 

12,812,007

 

Other property and equipment

 

 

72,856

 

 

 

 

178,689

 

Total property and equipment

 

 

1,902,328

 

 

 

 

12,990,696

 

Less accumulated depreciation, depletion and amortization

 

 

(19,447

)

 

 

 

(5,735,239

)

Total property and equipment, net

 

 

1,882,881

 

 

 

 

7,255,457

 

Other long-term assets

 

 

38,007

 

 

 

 

50,281

 

TOTAL ASSETS

 

$

2,098,456

 

 

 

$

7,636,721

 

 

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

 

 

 

Successor

 

 

Predecessor

 

 

September 30,

 

 

December 31,

 

 

2020

 

 

2019

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable trade

 

$

44,171

 

 

$

80,100

 

Revenues and royalties payable

 

 

146,767

 

 

 

202,010

 

Accrued capital expenditures

 

 

14,809

 

 

 

64,263

 

Accrued liabilities and other

 

 

63,987

 

 

 

85,007

 

Accrued lease operating expenses

 

 

23,757

 

 

 

38,262

 

Accrued interest

 

 

1,432

 

 

 

53,928

 

Taxes payable

 

 

16,985

 

 

 

26,844

 

Total current liabilities

 

 

311,908

 

 

 

550,414

 

Long-term debt

 

 

400,328

 

 

 

2,799,885

 

Asset retirement obligations

 

 

119,262

 

 

 

131,208

 

Operating lease obligations

 

 

17,749

 

 

 

31,722

 

Deferred income taxes

 

 

-

 

 

 

73,593

 

Other long-term liabilities

 

 

19,723

 

 

 

24,928

 

Total liabilities

 

 

868,970

 

 

 

3,611,750

 

Commitments and contingencies

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

Predecessor common stock, $0.001 par value, 225,000,000 shares authorized; 91,743,571 issued and 91,326,469 outstanding as of December 31, 2019

 

 

-

 

 

 

92

 

Successor common stock, $0.001 par value, 500,000,000 shares authorized; 38,051,210 issued and outstanding as of September 30, 2020

 

 

38

 

 

 

-

 

Additional paid-in capital

 

 

1,189,178

 

 

 

6,409,991

 

Accumulated earnings (deficit)

 

 

40,270

 

 

 

(2,385,112

)

Total equity

 

 

1,229,486

 

 

 

4,024,971

 

TOTAL LIABILITIES AND EQUITY

 

$

2,098,456

 

 

$

7,636,721

 

 

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month
Ended
September 30,
2020

 

 

Two Months
Ended
August 31,
2020

 

Combined
Three Months
Ended
September 30,
2020

 

Three Months
Ended
September 30,
2019

OPERATING REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, NGL and natural gas sales

 

$

61,084

 

 

 

$

122,558

 

 

$

183,642

 

 

$

375,891

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

 

18,526

 

 

 

 

32,646

 

 

 

51,172

 

 

 

85,320

 

Transportation, gathering, compression and other

 

 

1,980

 

 

 

 

4,259

 

 

 

6,239

 

 

 

11,176

 

Production and ad valorem taxes

 

 

5,908

 

 

 

 

10,362

 

 

 

16,270

 

 

 

35,220

 

Depreciation, depletion and amortization

 

 

20,110

 

 

 

 

71,240

 

 

 

91,350

 

 

 

211,025

 

Exploration and impairment

 

 

4,207

 

 

 

 

10,217

 

 

 

14,424

 

 

 

10,890

 

General and administrative

 

 

10,345

 

 

 

 

16,513

 

 

 

26,858

 

 

 

29,890

 

Derivative (gain) loss, net

 

 

(30,594

)

 

 

 

43,125

 

 

 

12,531

 

 

 

(30,597

)

Loss on sale of properties

 

 

395

 

 

 

 

1,280

 

 

 

1,675

 

 

 

595

 

Amortization of deferred gain on sale

 

 

-

 

 

 

 

(1,171

)

 

 

(1,171

)

 

 

(2,266

)

Total operating expenses

 

 

30,877

 

 

 

 

188,471

 

 

 

219,348

 

 

 

351,253

 

INCOME FROM OPERATIONS

 

 

30,207

 

 

 

 

(65,913

)

 

 

(35,706

)

 

 

24,638

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,128

)

 

 

 

(11,379

)

 

 

(13,507

)

 

 

(48,447

)

Gain (loss) on extinguishment of debt

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

4,598

 

Interest income and other

 

 

6

 

 

 

 

139

 

 

 

145

 

 

 

144

 

Reorganization items

 

 

-

 

 

 

 

259,232

 

 

 

259,232

 

 

 

-

 

Total other income (expense)

 

 

(2,122

)

 

 

 

247,992

 

 

 

245,870

 

 

 

(43,705

)

INCOME (LOSS) BEFORE INCOME TAXES

 

 

28,085

 

 

 

 

182,079

 

 

 

210,164

 

 

 

(19,067

)

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

2,316

 

 

 

 

-

 

 

 

2,316

 

 

 

-

 

Deferred

 

 

(14,501

)

 

 

 

(55,346

)

 

 

(69,847

)

 

 

-

 

Total income tax benefit

 

 

(12,185

)

 

 

 

(55,346

)

 

 

(67,531

)

 

 

-

 

NET INCOME (LOSS)

 

$

40,270

 

 

 

$

237,425

 

 

$

277,695

 

 

$

(19,067

)

INCOME (LOSS) PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.06

 

 

 

$

2.60

 

 

$

7.30

 

 

$

(0.21

)

Diluted

 

$

1.06

 

 

 

$

2.60

 

 

$

7.30

 

 

$

(0.21

)

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

38,051

 

 

 

 

91,464

 

 

 

38,051

 

 

 

91,299

 

Diluted

 

 

38,051

 

 

 

 

91,464

 

 

 

38,051

 

 

 

91,299

 

 

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month
Ended
September 30,
2020

 

 

Eight Months
Ended
August 31,
2020

 

Combined
Nine Months
Ended
September 30,
2020

 

Nine Months
Ended
September 30,
2019

OPERATING REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, NGL and natural gas sales

 

$

61,084

 

 

 

$

459,004

 

 

$

520,088

 

 

$

1,191,644

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

 

18,526

 

 

 

 

158,228

 

 

 

176,754

 

 

 

256,384

 

Transportation, gathering, compression and other

 

 

1,980

 

 

 

 

22,266

 

 

 

24,246

 

 

 

32,145

 

Production and ad valorem taxes

 

 

5,908

 

 

 

 

41,204

 

 

 

47,112

 

 

 

102,796

 

Depreciation, depletion and amortization

 

 

20,110

 

 

 

 

338,757

 

 

 

358,867

 

 

 

612,166

 

Exploration and impairment

 

 

4,207

 

 

 

 

4,184,830

 

 

 

4,189,037

 

 

 

44,045

 

General and administrative

 

 

10,345

 

 

 

 

91,816

 

 

 

102,161

 

 

 

97,437

 

Derivative (gain) loss, net

 

 

(30,594

)

 

 

 

(181,614

)

 

 

(212,208

)

 

 

7,431

 

Loss on sale of properties

 

 

395

 

 

 

 

927

 

 

 

1,322

 

 

 

1,681

 

Amortization of deferred gain on sale

 

 

-

 

 

 

 

(5,116

)

 

 

(5,116

)

 

 

(6,963

)

Total operating expenses

 

 

30,877

 

 

 

 

4,651,298

 

 

 

4,682,175

 

 

 

1,147,122

 

INCOME FROM OPERATIONS

 

 

30,207

 

 

 

 

(4,192,294

)

 

 

(4,162,087

)

 

 

44,522

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(2,128

)

 

 

 

(73,054

)

 

 

(75,182

)

 

 

(145,274

)

Gain (loss) on extinguishment of debt

 

 

-

 

 

 

 

25,883

 

 

 

25,883

 

 

 

4,598

 

Interest income and other

 

 

6

 

 

 

 

211

 

 

 

217

 

 

 

1,102

 

Reorganization items

 

 

-

 

 

 

 

217,419

 

 

 

217,419

 

 

 

-

 

Total other income (expense)

 

 

(2,122

)

 

 

 

170,459

 

 

 

168,337

 

 

 

(139,574

)

INCOME (LOSS) BEFORE INCOME TAXES

 

 

28,085

 

 

 

 

(4,021,835

)

 

 

(3,993,750

)

 

 

(95,052

)

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

2,316

 

 

 

 

2,718

 

 

 

5,034

 

 

 

-

 

Deferred

 

 

(14,501

)

 

 

 

(59,092

)

 

 

(73,593

)

 

 

(1,373

)

Total income tax benefit

 

 

(12,185

)

 

 

 

(56,374

)

 

 

(68,559

)

 

 

(1,373

)

NET INCOME (LOSS)

 

$

40,270

 

 

 

$

(3,965,461

)

 

$

(3,925,191

)

 

$

(93,679

)

INCOME (LOSS) PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.06

 

 

 

$

(43.37

)

 

$

(103.16

)

 

$

(1.03

)

Diluted

 

$

1.06

 

 

 

$

(43.37

)

 

$

(103.16

)

 

$

(1.03

)

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

38,051

 

 

 

 

91,423

 

 

 

38,051

 

 

 

91,274

 

Diluted

 

 

38,051

 

 

 

 

91,423

 

 

 

38,051

 

 

 

91,274

 

 

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September 30,
2020

 

 

Two Months
Ended
August 31,
2020

 

Combined
Three Months
Ended
September 30,
2020

 

Three Months
Ended
September 30,
2019

Net income (loss)

 

$

40,270

 

 

 

$

237,425

 

 

$

277,695

 

 

$

(19,067

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred gain on sale

 

 

-

 

 

 

 

(1,171

)

 

 

(1,171

)

 

 

(2,266

)

Loss on sale of properties

 

 

395

 

 

 

 

1,280

 

 

 

1,675

 

 

 

595

 

Impairment expense

 

 

-

 

 

 

 

7,516

 

 

 

7,516

 

 

 

2,550

 

(Gain) loss on extinguishment of debt

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

(4,598

)

Total measure of derivative (gain) loss reported under U.S. GAAP

 

 

(30,594

)

 

 

 

43,125

 

 

 

12,531

 

 

 

(30,597

)

Total net cash settlements received (paid) on commodity derivatives during the period

 

 

1,031

 

 

 

 

(731

)

 

 

300

 

 

 

10,454

 

Reorganization items, net

 

 

-

 

 

 

 

(259,232

)

 

 

(259,232

)

 

 

-

 

Restructuring and other one-time costs (1)

 

 

9,333

 

 

 

 

6,004

 

 

 

15,337

 

 

 

7,781

 

Tax impact of basis difference for Whiting Canadian Holding Company ULC

 

 

(12,185

)

 

 

 

(55,346

)

 

 

(67,531

)

 

 

-

 

Adjusted net income (loss) (2)

 

$

8,250

 

 

 

$

(21,130

)

 

$

(12,880

)

 

$

(35,148

)

Adjusted net income (loss) per share, basic (3)

 

$

0.22

 

 

 

$

(0.23

)

 

$

(0.34

)

 

$

(0.38

)

Adjusted net income (loss) per share, diluted (3)

 

$

0.22

 

 

 

$

(0.23

)

 

$

(0.34

)

 

$

(0.38

)

_________________________________

(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020 and 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 it provides useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that adjusted net income (loss) 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.

(3)

For the combined three months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September 30,
2020

 

 

Eight Months
Ended
August 31,
2020

 

Combined
Nine Months
Ended
September 30,
2020

 

Nine Months
Ended
September 30,
2019

Net income (loss)

 

$

40,270

 

 

 

$

(3,965,461

)

 

$

(3,925,191

)

 

$

(93,679

)

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred gain on sale

 

 

-

 

 

 

 

(5,116

)

 

 

(5,116

)

 

 

(6,963

)

Loss on sale of properties

 

 

395

 

 

 

 

927

 

 

 

1,322

 

 

 

1,681

 

Impairment expense

 

 

-

 

 

 

 

4,161,885

 

 

 

4,161,885

 

 

 

15,729

 

(Gain) loss on extinguishment of debt

 

 

-

 

 

 

 

(25,883

)

 

 

(25,883

)

 

 

(4,598

)

Total measure of derivative (gain) loss reported under U.S. GAAP

 

 

(30,594

)

 

 

 

(181,614

)

 

 

(212,208

)

 

 

7,431

 

Total net cash settlements received (paid) on commodity derivatives during the period

 

 

1,031

 

 

 

 

45,483

 

 

 

46,514

 

 

 

14,797

 

Reorganization items, net

 

 

-

 

 

 

 

(217,419

)

 

 

(217,419

)

 

 

-

 

Restructuring and other one-time costs (1)

 

 

9,333

 

 

 

 

32,888

 

 

 

42,221

 

 

 

7,781

 

Tax impact of basis difference for Whiting Canadian Holding Company ULC

 

 

(12,185

)

 

 

 

(55,346

)

 

 

(67,531

)

 

 

-

 

Adjusted net income (loss) (2)

 

$

8,250

 

 

 

$

(209,656

)

 

$

(201,406

)

 

$

(57,821

)

Adjusted net income (loss) per share, basic (3)

 

$

0.22

 

 

 

$

(2.29

)

 

$

(5.29

)

 

$

(0.63

)

Adjusted net income (loss) per share, diluted (3)

 

$

0.22

 

 

 

$

(2.29

)

 

$

(5.29

)

 

$

(0.63

)

_________________________________

(1)

  Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement.

(2)

  Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. Management believes it provides useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that adjusted net income (loss) 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.

(3)

  For the combined nine months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September 30,
2020

 

 

Two Months
Ended
August 31,
2020

 

Combined
Three Months
Ended
September 30,
2020

 

Three Months
Ended
September 30,
2019

Net income (loss)

 

$

40,270

 

 

 

$

237,425

 

 

$

277,695

 

 

$

(19,067

)

Interest expense

 

 

2,128

 

 

 

 

11,379

 

 

 

13,507

 

 

 

48,447

 

Interest income

 

 

(6

)

 

 

 

(139

)

 

 

(145

)

 

 

-

 

Income tax expense (benefit)

 

 

(12,185

)

 

 

 

(55,346

)

 

 

(67,531

)

 

 

-

 

Depreciation, depletion and amortization

 

 

20,110

 

 

 

 

71,240

 

 

 

91,350

 

 

 

211,025

 

Amortization of deferred gain on sale

 

 

-

 

 

 

 

(1,171

)

 

 

(1,171

)

 

 

(2,266

)

Total measure of derivative (gain) loss reported under U.S. GAAP

 

 

(30,594

)

 

 

 

43,125

 

 

 

12,531

 

 

 

(30,597

)

Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs

 

 

1,031

 

 

 

 

(731

)

 

 

300

 

 

 

10,454

 

Non-cash stock-based compensation

 

 

-

 

 

 

 

787

 

 

 

787

 

 

 

(3,531

)

(Gain) loss on extinguishment of debt

 

 

-

 

 

 

 

-

 

 

 

-

 

 

 

(4,598

)

Loss on sale of properties

 

 

395

 

 

 

 

1,280

 

 

 

1,675

 

 

 

595

 

Reorganization items, net

 

 

-

 

 

 

 

(259,232

)

 

 

(259,232

)

 

 

-

 

Restructuring and other one-time costs (1)

 

 

9,333

 

 

 

 

6,004

 

 

 

15,337

 

 

 

14,311

 

Adjusted EBITDA (2)

 

 

30,482

 

 

 

 

54,621

 

 

 

85,103

 

 

 

224,773

 

Exploration and impairment expense

 

 

4,207

 

 

 

 

10,217

 

 

 

14,424

 

 

 

10,890

 

Adjusted EBITDAX (2)

 

$

34,689

 

 

 

$

64,838

 

 

$

99,527

 

 

$

235,663

 

_________________________________

(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020 and directors and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in “non-cash stock-based compensation.”

(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 U.S. GAAP and may not be comparable to other similarly titled measures of other companies.

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

Non-GAAP

 

Predecessor

 

 

Month Ended
September 30,
2020

 

 

Eight Months
Ended
August 31,
2020

 

Combined
Nine Months
Ended
September 30,
2020

 

Nine Months
Ended
September 30,
2019

Net income (loss)

 

$

40,270

 

 

 

$

(3,965,461

)

 

$

(3,925,191

)

 

$

(93,679

)

Interest expense

 

 

2,128

 

 

 

 

73,054

 

 

 

75,182

 

 

 

145,274

 

Interest income

 

 

(6

)

 

 

 

(211

)

 

 

(217

)

 

 

(2

)

Income tax expense (benefit)

 

 

(12,185

)

 

 

 

(56,374

)

 

 

(68,559

)

 

 

(1,373

)

Depreciation, depletion and amortization

 

 

20,110

 

 

 

 

338,757

 

 

 

358,867

 

 

 

612,166

 

Amortization of deferred gain on sale

 

 

-

 

 

 

 

(5,116

)

 

 

(5,116

)

 

 

(6,963

)

Total measure of derivative (gain) loss reported under U.S. GAAP

 

 

(30,594

)

 

 

 

(181,614

)

 

 

(212,208

)

 

 

7,431

 

Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs

 

 

1,031

 

 

 

 

45,483

 

 

 

46,514

 

 

 

14,797

 

Non-cash stock-based compensation

 

 

-

 

 

 

 

3,719

 

 

 

3,719

 

 

 

5,086

 

(Gain) loss on extinguishment of debt

 

 

-

 

 

 

 

(25,883

)

 

 

(25,883

)

 

 

(4,598

)

Loss on sale of properties

 

 

395

 

 

 

 

927

 

 

 

1,322

 

 

 

1,681

 

Reorganization items, net

 

 

-

 

 

 

 

(217,419

)

 

 

(217,419

)

 

 

-

 

Restructuring and other one-time costs (1)

 

 

9,333

 

 

 

 

32,888

 

 

 

42,221

 

 

 

14,311

 

Adjusted EBITDA (2)

 

 

30,482

 

 

 

 

(3,957,250

)

 

 

(3,926,768

)

 

 

694,131

 

Exploration and impairment expense

 

 

4,207

 

 

 

 

4,184,830

 

 

 

4,189,037

 

 

 

44,045

 

Adjusted EBITDAX (2)

 

$

34,689

 

 

 

$

227,580

 

 

$

262,269

 

 

$

738,176

 

_________________________________

(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in “non-cash stock-based compensation.”

(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 U.S. GAAP and may not be comparable to other similarly titled measures of other companies.

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 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 the chapter 11 bankruptcy; declines in, or extended periods of low oil, NGL or natural gas prices; our level of success in exploration, development and production activities; risks related to our level of indebtedness, our ability to comply with debt covenants, periodic redeterminations of the borrowing base under the Exit 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; our ability to obtain external capital to finance exploration and development operations; negative impacts from outbreaks of communicable diseases, including the COVID-19 pandemic; our inability to access oil and gas markets due to market conditions or operational impediments, including any court rulings which may result in the inability to transport oil on the Dakota Access Pipeline; negative impacts from litigation and legal proceedings, including ongoing claims in connection with the chapter 11 bankruptcy; the impact of negative shifts in investor sentiment towards the oil and gas industry; impacts resulting from the allocation of resources among our strategic opportunities; the geographic concentration of our operations; impacts to financial statements as a result of impairment write-downs and other cash and noncash charges; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; 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; the timing of our exploration and development expenditures; risks relating to decreases in our credit rating; market availability of, and risks associated with, transport of oil and gas; our ability to successfully complete asset dispositions and the risks related thereto; our ability to drill producing wells on undeveloped acreage prior to its lease expiration; shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; weakened differentials impacting the price we receive for oil and natural gas; risks relating to any unforeseen liabilities of ours; the impacts of hedging on our results of operations; adverse weather conditions that may negatively impact development or production activities; uninsured or underinsured losses resulting from our oil and gas operations; lack of control over non-operated properties; failure of our properties to yield oil or gas in commercially viable quantities; 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 public perception of our industry and corporate governance standards; our ability to replace our oil and natural gas reserves; unforeseen underperformance of or liabilities associated with acquired properties or other strategic partnerships or investments; competition in the oil and gas industry; any loss of our senior management or technical personnel; cybersecurity attacks or failures of our telecommunication and other information technology infrastructure; and other risks described under the caption “Risk Factors” in Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and our Annual Report on Form 10‑K for the period ended December 31, 2019. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.

Company Contact: Brandon Day 
Title: Investor Relations Manager 
Phone: 303‑837‑1661
Email: Brandond@whiting.com

Source: Whiting Petroleum Corporation