0001255474--12-312021Q3false3912738938051125P1MP2YP3YP2Y0001255474us-gaap:CommonStockMember2020-09-010001255474us-gaap:AdditionalPaidInCapitalMember2020-09-010001255474srt:MinimumMember2021-01-012021-09-300001255474srt:MaximumMember2021-01-012021-09-300001255474wll:CashRetentionIncentivesMember2020-08-310001255474wll:ProvedPropertiesMemberus-gaap:MeasurementInputDiscountRateMember2021-09-142021-09-140001255474wll:ProvedPropertiesMemberus-gaap:MeasurementInputDiscountRateMember2020-07-012020-09-300001255474wll:ProvedPropertiesMemberus-gaap:MeasurementInputDiscountRateMember2020-01-012020-03-310001255474srt:MinimumMemberwll:PerformanceUnitsMember2021-01-012021-09-300001255474srt:MaximumMemberwll:PerformanceUnitsMember2021-01-012021-09-300001255474us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberwll:RedtailFieldDenverJulesburgBasinOfWeldCountyColoradoMember2021-09-230001255474wll:RatioOfOutstandingBorrowingsToBorrowingBaseOneMemberwll:CreditAgreementMember2021-09-150001255474wll:RatioOfOutstandingBorrowingsToBorrowingBaseTwoMemberwll:CreditAgreementMember2021-09-150001255474wll:CreditAgreementMember2021-09-140001255474wll:CashRetentionIncentivesMember2020-01-012020-03-310001255474us-gaap:CommonStockMember2021-04-012021-06-300001255474wll:GeneralUnsecuredClaimantsMember2021-02-012021-02-280001255474wll:SeniorNotesHoldersMember2020-09-012020-09-010001255474wll:SeniorNotesAggregateMember2020-09-012020-09-010001255474wll:ExistingStockholdersMember2020-09-012020-09-010001255474us-gaap:CommonStockMember2020-09-012020-09-010001255474us-gaap:RetainedEarningsMember2021-09-300001255474us-gaap:AdditionalPaidInCapitalMember2021-09-300001255474us-gaap:RetainedEarningsMember2021-06-300001255474us-gaap:AdditionalPaidInCapitalMember2021-06-3000012554742021-06-300001255474us-gaap:RetainedEarningsMember2021-03-310001255474us-gaap:AdditionalPaidInCapitalMember2021-03-3100012554742021-03-310001255474us-gaap:RetainedEarningsMember2020-12-310001255474us-gaap:AdditionalPaidInCapitalMember2020-12-310001255474us-gaap:RetainedEarningsMember2020-09-300001255474us-gaap:AdditionalPaidInCapitalMember2020-09-300001255474us-gaap:RetainedEarningsMember2020-08-310001255474us-gaap:AdditionalPaidInCapitalMember2020-08-310001255474us-gaap:RetainedEarningsMember2020-06-300001255474us-gaap:AdditionalPaidInCapitalMember2020-06-3000012554742020-06-300001255474us-gaap:RetainedEarningsMember2020-03-310001255474us-gaap:AdditionalPaidInCapitalMember2020-03-3100012554742020-03-310001255474us-gaap:RetainedEarningsMember2019-12-310001255474us-gaap:AdditionalPaidInCapitalMember2019-12-310001255474us-gaap:CommonStockMember2021-07-012021-09-300001255474us-gaap:CommonStockMember2021-01-012021-03-310001255474us-gaap:CommonStockMember2020-07-012020-08-310001255474us-gaap:CommonStockMember2020-01-012020-03-310001255474us-gaap:CommonStockMember2021-09-300001255474us-gaap:CommonStockMember2021-06-300001255474us-gaap:CommonStockMember2021-03-310001255474us-gaap:CommonStockMember2020-12-310001255474us-gaap:CommonStockMember2020-09-300001255474us-gaap:CommonStockMember2020-08-310001255474us-gaap:CommonStockMember2020-06-300001255474us-gaap:CommonStockMember2020-03-310001255474us-gaap:CommonStockMember2019-12-310001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2021-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2020-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2020-09-300001255474us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001255474wll:MarketBasedRestrictedStockMember2021-01-012021-09-300001255474wll:ServiceBasedRestrictedStockMember2021-09-300001255474wll:PerformanceUnitsMember2021-09-300001255474wll:MarketBasedRestrictedStockMember2021-09-300001255474wll:ServiceBasedRestrictedStockMember2020-12-310001255474wll:MarketBasedRestrictedStockMember2020-12-310001255474wll:ServiceBasedRestrictedStockMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2021-01-012021-09-300001255474wll:ServiceBasedRestrictedStockMembersrt:ExecutiveOfficerMember2021-01-012021-09-300001255474wll:PerformanceUnitsMemberwll:RelativeStockholderReturnPerformanceShareUnitsMember2021-01-012021-09-300001255474wll:PerformanceUnitsMemberwll:AbsoluteTotalStockholderReturnPerformanceShareUnitsMember2021-01-012021-09-300001255474wll:PerformanceUnitsMember2021-01-012021-09-300001255474wll:ServiceBasedRestrictedStockMember2020-09-012020-10-310001255474wll:MarketBasedRestrictedStockMember2020-09-012020-09-300001255474wll:RestrictedStockAndRestrictedStockUnitsMember2020-01-012020-08-310001255474wll:PerformanceSharesAndPerformanceUnitsMember2020-01-012020-08-310001255474us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-08-310001255474wll:ServiceBasedRestrictedStockMember2021-01-012021-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2021-01-012021-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-09-012020-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2020-09-012020-09-300001255474wll:MarketBasedRestrictedStockMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2020-09-012020-09-300001255474wll:VestingPeriodScenario3Memberwll:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2021-01-012021-09-300001255474wll:VestingPeriodScenario2Memberwll:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2021-01-012021-09-300001255474wll:VestingPeriodScenario1Memberwll:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2021-01-012021-09-300001255474srt:MinimumMemberwll:ServiceBasedRestrictedStockMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2021-01-012021-09-300001255474srt:MaximumMemberwll:ServiceBasedRestrictedStockMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2021-01-012021-09-300001255474wll:ServiceBasedRestrictedStockMembersrt:DirectorMember2021-01-012021-09-300001255474wll:RestrictedStockAndRestrictedStockUnitsMemberus-gaap:ShareBasedPaymentArrangementNonemployeeMember2021-01-012021-09-300001255474wll:PerformanceSharesAndPerformanceUnitsMember2021-01-012021-09-300001255474wll:WillistonBasinMember2021-01-012021-09-300001255474us-gaap:OilAndGasPurchasedMember2021-07-012021-09-300001255474us-gaap:OilAndGasExplorationAndProductionMember2021-07-012021-09-300001255474us-gaap:OilAndCondensateMember2021-07-012021-09-300001255474us-gaap:NaturalGasProductionMember2021-07-012021-09-300001255474us-gaap:OilAndGasPurchasedMember2021-01-012021-09-300001255474us-gaap:OilAndGasExplorationAndProductionMember2021-01-012021-09-300001255474us-gaap:OilAndCondensateMember2021-01-012021-09-300001255474us-gaap:NaturalGasProductionMember2021-01-012021-09-300001255474us-gaap:OilAndGasExplorationAndProductionMember2020-09-012020-09-300001255474us-gaap:OilAndCondensateMember2020-09-012020-09-300001255474us-gaap:NaturalGasProductionMember2020-09-012020-09-300001255474us-gaap:OilAndGasExplorationAndProductionMember2020-07-012020-08-310001255474us-gaap:OilAndCondensateMember2020-07-012020-08-310001255474us-gaap:NaturalGasProductionMember2020-07-012020-08-310001255474us-gaap:OilAndGasExplorationAndProductionMember2020-01-012020-08-310001255474us-gaap:OilAndCondensateMember2020-01-012020-08-310001255474us-gaap:NaturalGasProductionMember2020-01-012020-08-310001255474us-gaap:OneTimeTerminationBenefitsMember2020-09-012020-09-300001255474wll:ProvedPropertiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001255474wll:ProvedPropertiesMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-09-300001255474wll:ProvedPropertiesMember2020-06-300001255474wll:ProvedPropertiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-03-310001255474wll:ProvedPropertiesMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-03-310001255474wll:ProvedPropertiesMember2020-03-310001255474wll:ProvedPropertiesMemberus-gaap:FairValueMeasurementsNonrecurringMember2019-12-310001255474us-gaap:RetainedEarningsMember2021-07-012021-09-300001255474us-gaap:RetainedEarningsMember2021-04-012021-06-300001255474us-gaap:RetainedEarningsMember2021-01-012021-03-310001255474us-gaap:RetainedEarningsMember2020-09-012020-09-300001255474us-gaap:RetainedEarningsMember2020-07-012020-08-310001255474us-gaap:RetainedEarningsMember2020-04-012020-06-300001255474us-gaap:RetainedEarningsMember2020-01-012020-03-310001255474us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberwll:MckenzieMountrailAndWilliamsCountiesMember2020-01-092020-01-090001255474wll:CreditAgreementMember2021-01-012021-09-300001255474wll:CreditAgreementMember2020-09-012020-09-300001255474wll:CreditAgreementMember2020-01-012020-08-310001255474us-gaap:LineOfCreditMember2020-01-012020-08-3100012554742020-06-012020-06-300001255474wll:CreditAgreementMember2020-12-310001255474us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-08-310001255474us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-06-300001255474wll:CreditAgreementMember2020-09-012020-09-010001255474us-gaap:LetterOfCreditMember2021-09-300001255474wll:CreditAgreementMember2021-09-150001255474us-gaap:LetterOfCreditMember2021-09-150001255474wll:CreditAgreementMember2020-09-010001255474country:CA2020-09-012020-09-300001255474country:CA2020-01-012020-08-3100012554742020-08-312020-08-310001255474srt:MinimumMemberwll:MarketBasedRestrictedStockMember2020-09-012020-09-300001255474srt:MaximumMemberwll:MarketBasedRestrictedStockMember2020-09-012020-09-3000012554742020-01-012020-09-300001255474us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberwll:RedtailFieldDenverJulesburgBasinOfWeldCountyColoradoMember2021-09-232021-09-230001255474wll:NaturalGasBasisMemberwll:DerivativeMaturitiesFor2022Memberus-gaap:SwapMember2021-10-310001255474us-gaap:PublicUtilitiesInventoryPropaneMemberwll:DerivativeMaturitiesFor2022Memberwll:MontBelvieuIndexSwapMember2021-10-310001255474us-gaap:PublicUtilitiesInventoryPropaneMemberwll:DerivativeMaturitiesFor2022Memberwll:ConwayIndexSwapMember2021-10-310001255474srt:NaturalGasPerThousandCubicFeetMemberwll:DerivativeMaturitiesFor2022Memberus-gaap:SwapMember2021-10-310001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2022Memberus-gaap:SwapMember2021-10-310001255474wll:NaturalGasBasisMember2021-10-310001255474us-gaap:PublicUtilitiesInventoryPropaneMember2021-10-310001255474srt:NaturalGasPerThousandCubicFeetMember2021-10-310001255474srt:CrudeOilMember2021-10-310001255474wll:NaturalGasBasisMemberwll:DerivativeMaturitiesFor2023Memberus-gaap:SwapMember2021-09-300001255474wll:NaturalGasBasisMemberwll:DerivativeMaturitiesFor2022Memberus-gaap:SwapMember2021-09-300001255474wll:NaturalGasBasisMemberwll:DerivativeMaturitiesFor2021Memberus-gaap:SwapMember2021-09-300001255474wll:CrudeOilDifferentialsMemberwll:DerivativeMaturitiesFor2021Memberus-gaap:SwapMember2021-09-300001255474us-gaap:PublicUtilitiesInventoryPropaneMemberwll:DerivativeMaturitiesFor2022Memberwll:MontBelvieuIndexSwapMember2021-09-300001255474us-gaap:PublicUtilitiesInventoryPropaneMemberwll:DerivativeMaturitiesFor2022Memberwll:ConwayIndexSwapMember2021-09-300001255474us-gaap:PublicUtilitiesInventoryPropaneMemberwll:DerivativeMaturitiesFor2021Memberwll:MontBelvieuIndexSwapMember2021-09-300001255474us-gaap:PublicUtilitiesInventoryPropaneMemberwll:DerivativeMaturitiesFor2021Memberwll:ConwayIndexSwapMember2021-09-300001255474srt:NaturalGasPerThousandCubicFeetMemberwll:DerivativeMaturitiesFor2022Memberus-gaap:SwapMember2021-09-300001255474srt:NaturalGasPerThousandCubicFeetMemberwll:DerivativeMaturitiesFor2021Memberus-gaap:SwapMember2021-09-300001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2022Memberus-gaap:SwapMember2021-09-300001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2021Memberus-gaap:SwapMember2021-09-300001255474wll:NaturalGasBasisMember2021-09-300001255474wll:CrudeOilDifferentialsMember2021-09-300001255474us-gaap:PublicUtilitiesInventoryPropaneMember2021-09-300001255474srt:NaturalGasPerThousandCubicFeetMember2021-09-300001255474srt:CrudeOilMember2021-09-300001255474us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMember2021-09-300001255474us-gaap:CommodityContractMember2021-09-300001255474us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMember2020-12-310001255474us-gaap:CommodityContractMember2020-12-310001255474us-gaap:FairValueInputsLevel2Member2021-09-300001255474us-gaap:FairValueInputsLevel2Member2020-12-3100012554742020-04-012020-04-300001255474wll:LongTermDerivativeLiabilitiesMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-09-300001255474us-gaap:OtherCurrentLiabilitiesMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-09-300001255474wll:LongTermDerivativeLiabilitiesMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001255474us-gaap:OtherCurrentLiabilitiesMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2022Memberwll:TwoWayCollarsMember2021-10-310001255474srt:NaturalGasPerThousandCubicFeetMemberwll:DerivativeMaturitiesFor2023Memberwll:TwoWayCollarsMember2021-09-300001255474srt:NaturalGasPerThousandCubicFeetMemberwll:DerivativeMaturitiesFor2022Memberwll:TwoWayCollarsMember2021-09-300001255474srt:NaturalGasPerThousandCubicFeetMemberwll:DerivativeMaturitiesFor2021Memberwll:TwoWayCollarsMember2021-09-300001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2023Memberwll:TwoWayCollarsMember2021-09-300001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2022Memberwll:TwoWayCollarsMember2021-09-300001255474srt:CrudeOilMemberwll:DerivativeMaturitiesFor2021Memberwll:TwoWayCollarsMember2021-09-300001255474us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-09-300001255474us-gaap:OtherNoncurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-09-300001255474us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-09-300001255474us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001255474us-gaap:OtherNoncurrentAssetsMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001255474us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001255474wll:CreditAgreementMember2021-09-300001255474wll:ConvertibleSeniorNotes1.25PercentDueTwoThousandTwentyMember2020-03-310001255474wll:ConvertibleSeniorNotes1.25PercentDueTwoThousandTwentyMember2020-09-300001255474wll:SeniorNotes6.625PercentDueTwoThousandTwentySixMember2020-08-310001255474wll:SeniorNotes6.25PercentDueTwoThousandTwentyThreeMember2020-08-310001255474wll:SeniorNotes5.75PercentDueTwoThousandTwentyOneMember2020-08-310001255474wll:ConvertibleSeniorNotes1.25PercentDueTwoThousandTwentyMember2020-08-310001255474srt:MinimumMemberwll:CreditAgreementMemberus-gaap:EurodollarMember2020-09-012020-09-010001255474srt:MinimumMemberwll:CreditAgreementMemberus-gaap:BaseRateMember2020-09-012020-09-010001255474srt:MaximumMemberwll:CreditAgreementMemberus-gaap:EurodollarMember2020-09-012020-09-010001255474srt:MaximumMemberwll:CreditAgreementMemberus-gaap:BaseRateMember2020-09-012020-09-010001255474wll:CreditAgreementMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-012020-09-010001255474wll:CreditAgreementMemberus-gaap:FederalFundsEffectiveSwapRateMember2020-09-012020-09-0100012554742020-07-012020-09-3000012554742020-09-010001255474wll:GeneralUnsecuredClaimantsMember2021-09-300001255474wll:GeneralUnsecuredClaimantsMember2020-09-010001255474srt:MaximumMemberwll:SeriesWarrantsMember2020-09-010001255474srt:MaximumMemberwll:SeriesBWarrantMember2020-09-010001255474wll:SeriesWarrantsMember2020-09-010001255474wll:SeriesBWarrantMember2020-09-0100012554742020-09-3000012554742020-08-3100012554742019-12-310001255474wll:WillistonBasinMember2021-09-142021-09-140001255474wll:GeneralUnsecuredClaimantsMember2021-02-280001255474wll:UsGovernmentMember2020-10-012020-10-010001255474wll:ArguelloAndFreeportMcmoranOilGasMember2020-10-012020-10-010001255474wll:UnprovedPropertiesMember2021-07-012021-09-300001255474wll:UnprovedPropertiesMember2021-01-012021-09-300001255474wll:UnprovedPropertiesMember2020-07-012020-08-310001255474wll:ProvedPropertiesMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-01-012020-09-300001255474wll:UnprovedPropertiesMember2020-01-012020-08-310001255474wll:ProvedPropertiesMember2020-01-012020-06-300001255474wll:ProvedPropertiesMemberus-gaap:FairValueMeasurementsNonrecurringMember2020-01-012020-03-310001255474wll:ProvedPropertiesMember2020-01-012020-03-310001255474wll:MarketBasedRestrictedStockMember2021-07-012021-09-300001255474wll:ContingentlyIssuableSharesMember2021-07-012021-09-300001255474wll:MarketBasedRestrictedStockMember2021-01-012021-09-300001255474wll:ContingentlyIssuableSharesMember2021-01-012021-09-300001255474wll:ServiceBasedRestrictedStockMember2020-09-012020-09-300001255474wll:MarketBasedRestrictedStockMember2020-09-012020-09-300001255474wll:ContingentlyIssuableSharesMember2020-09-012020-09-300001255474wll:RestrictedStockAndRestrictedStockUnitsMember2020-07-012020-08-310001255474us-gaap:EmployeeStockOptionMember2020-07-012020-08-310001255474wll:RestrictedStockAndRestrictedStockUnitsMember2020-01-012020-08-310001255474us-gaap:EmployeeStockOptionMember2020-01-012020-08-3100012554742020-09-012020-09-3000012554742020-01-012020-08-310001255474us-gaap:AdditionalPaidInCapitalMember2020-09-012020-09-0100012554742020-09-012020-09-010001255474us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000012554742020-04-012020-06-300001255474wll:ConvertibleSeniorNotes1.25PercentDueTwoThousandTwentyMember2020-03-012020-03-310001255474us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-3000012554742021-07-012021-09-300001255474us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000012554742021-04-012021-06-300001255474us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100012554742021-01-012021-03-310001255474us-gaap:AdditionalPaidInCapitalMember2020-07-012020-08-3100012554742020-07-012020-08-310001255474us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100012554742020-01-012020-03-3100012554742021-09-3000012554742020-12-310001255474wll:WillistonBasinMember2021-09-1400012554742021-11-0100012554742021-01-012021-09-30xbrli:shareswll:itemiso4217:USDiso4217:USDxbrli:sharesxbrli:pureiso4217:USDwll:itemwll:areawll:D

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

or

        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission file number: 001-31899

Graphic

WHITING PETROLEUM CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

    

20-0098515

(State or other jurisdiction
of incorporation or organization)

(I.R.S. Employer
Identification No.)

1700 Lincoln Street, Suite 4700
Denver, Colorado

80203-4547

(Address of principal executive offices)

(Zip code)

(303) 837-1661

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, $0.001 par value

WLL

New York Stock Exchange

(Title of each class)

(Trading symbol)

(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes      No  

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Smaller reporting company

Accelerated filer

Emerging growth company

Non-accelerated filer

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes      No  

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.   Yes      No  

Number of shares of the registrant’s common stock outstanding at November 1, 2021: 39,133,637 shares.

TABLE OF CONTENTS

Glossary of Certain Definitions

1

PART I – FINANCIAL INFORMATION

Item 1.

Condensed Consolidated Financial Statements (Unaudited)

5

Condensed Consolidated Balance Sheets

5

Condensed Consolidated Statements of Operations

6

Condensed Consolidated Statements of Cash Flows

8

Condensed Consolidated Statements of Equity

10

Notes to Condensed Consolidated Financial Statements

11

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

32

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

49

Item 4.

Controls and Procedures

50

PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

50

Item 1A.

Risk Factors

50

Item 6.

Exhibits

50

Table of Contents

GLOSSARY OF CERTAIN DEFINITIONS

Unless the context otherwise requires, the terms “we,” “us,” “our” or “ours” when used in this Quarterly Report on Form 10-Q refer to Whiting Petroleum Corporation, together with its consolidated subsidiaries.  When the context requires, we refer to these entities separately.

We have included below the definitions for certain terms used in this report:

“ASC” Accounting Standards Codification.

“Bankruptcy Code” Title 11 of the United States Code.

“Bankruptcy Court” United States Bankruptcy Court for the Southern District of Texas.

“basis swap” or “differential swap” A derivative instrument that guarantees a fixed price differential to NYMEX at a specified delivery point.  We receive the difference between the floating market price differential and the fixed price differential from the counterparty if the floating market differential is greater than the fixed price differential for the hedged commodity.  We pay the difference between the floating market price differential and the fixed price differential to the counterparty if the fixed price differential is greater than the floating market differential for the hedged commodity.

“Bbl” One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to oil, NGLs and other liquid hydrocarbons.

“Bcf” One billion cubic feet, used in reference to natural gas.

“BOE” One stock tank barrel of oil equivalent, computed on an approximate energy equivalent basis that one Bbl of crude oil equals six Mcf of natural gas and one Bbl of crude oil equals one Bbl of natural gas liquids.

“Btu” or “British thermal unit” The quantity of heat required to raise the temperature of one pound of water one degree Fahrenheit.

“completion” The process of preparing an oil and gas wellbore for production through the installation of permanent production equipment, as well as perforation and fracture stimulation to optimize production.

“deterministic method” The method of estimating reserves or resources using a single value for each parameter (from the geoscience, engineering or economic data) in the reserves calculation.

“development well” A well drilled within the proved area of an oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.

“differential” The difference between a benchmark price of oil and natural gas, such as the NYMEX crude oil spot price, and the wellhead price received.

“FASB” Financial Accounting Standards Board.

“field” An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature and/or stratigraphic condition.  There may be two or more reservoirs in a field that are separated vertically by intervening impervious strata, or laterally by local geologic barriers, or both.  Reservoirs that are associated by being in overlapping or adjacent fields may be treated as a single or common operational field.  The geological terms “structural feature” and “stratigraphic condition” are intended to identify localized geological features as opposed to the broader terms of basins, trends, provinces, plays, areas of interest, etc.

“GAAP” Generally accepted accounting principles in the United States of America.

“gross acres” or “gross wells” The total acres or wells, as the case may be, in which a working interest is owned.

1

Table of Contents

“ISDA” International Swaps and Derivatives Association, Inc.

“lease operating expense” or “LOE” The expenses of lifting oil or gas from a producing formation to the surface, constituting part of the current operating expenses of a working interest, and also including labor, superintendence, supplies, repairs, short-lived assets, maintenance, allocated overhead costs and other expenses incidental to production, but not including lease acquisition or drilling or completion expenses.

“LIBOR” London interbank offered rate.

“MBbl” One thousand barrels of oil, NGLs or other liquid hydrocarbons.

“MBbl/d” One MBbl per day.

“MBOE” One thousand BOE.

“MBOE/d” One MBOE per day.

“Mcf” One thousand cubic feet, used in reference to natural gas.

“MMBbl” One million barrels of oil, NGLs or other liquid hydrocarbons.

“MMBOE” One million BOE.

“MMBtu” One million British Thermal Units, used in reference to natural gas.

“MMcf” One million cubic feet, used in reference to natural gas.

“MMcf/d” One MMcf per day.

“net acres” or “net wells” The sum of the fractional working interests owned in gross acres or wells, as the case may be.

“net production” The total production attributable to our fractional working interest owned.

“NGL” Natural gas liquid.

“NYMEX” The New York Mercantile Exchange.

“plugging and abandonment” Refers to the sealing off of fluids in the strata penetrated by a well so that the fluids from one stratum will not escape into another or to the surface.  Regulations of most states legally require plugging of abandoned wells.

“probabilistic method” The method of estimating reserves using the full range of values that could reasonably occur for each unknown parameter (from the geoscience and engineering data) to generate a full range of possible outcomes and their associated probabilities of occurrence.

“proved developed reserves” Proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well.

“proved reserves” Those reserves which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs and under existing economic conditions, operating methods and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.  The project to extract the hydrocarbons must have commenced, or the operator must be reasonably certain that it will commence the project, within a reasonable time.

2

Table of Contents

The area of the reservoir considered as proved includes all of the following:

a.The area identified by drilling and limited by fluid contacts, if any, and
b.Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.

Reserves that can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when both of the following occur:

a.Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based, and
b.The project has been approved for development by all necessary parties and entities, including governmental entities.

Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined.  The price shall be the average price during the 12-month period before the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.

“proved undeveloped reserves” or “PUDs” Proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.  Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.  Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless specific circumstances justify a longer time.  Under no circumstances shall estimates of proved undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty.

“reasonable certainty” If deterministic methods are used, reasonable certainty means a high degree of confidence that the quantities will be recovered.  If probabilistic methods are used, there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the estimate.  A high degree of confidence exists if the quantity is much more likely to be achieved than not, and, as changes due to increased availability of geoscience (geological, geophysical and geochemical) engineering, and economic data are made to estimated ultimate recovery with time, reasonably certain estimated ultimate recovery is much more likely to increase or remain constant than to decrease.

“reserves” Estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations.  In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project.

“reservoir” A porous and permeable underground formation containing a natural accumulation of producible crude oil and/or natural gas that is confined by impermeable rock or water barriers and is individual and separate from other reservoirs.

“resource play” An expansive contiguous geographical area with known accumulations of crude oil or natural gas reserves that has the potential to be developed uniformly with repeatable commercial success due to advancements in horizontal drilling and completion technologies.

“royalty” The amount or fee paid to the owner of mineral rights, expressed as a percentage or fraction of gross income from crude oil or natural gas produced and sold, unencumbered by expenses relating to the drilling, completing or operating of the affected well.

3

Table of Contents

“SEC” The United States Securities and Exchange Commission.

“turn-in-line” or “TIL” To turn a drilled and completed well online to begin sales.

“two-way collar” An option position where the proceeds from the sale of a call option at its inception fund the purchase of a put option at its inception.  

“working interest” The interest in a crude oil and natural gas property (normally a leasehold interest) that gives the owner the right to drill, produce and conduct operations on the property and to a share of production, subject to all royalties, overriding royalties and other burdens and to all costs of exploration, development and operations and all associated risks.

“workover” Operations on a producing well to restore or increase production.

4

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1.    Condensed Consolidated Financial Statements

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except share and per share data)

Successor

September 30,

December 31,

2021

2020

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$

12,909

$

28,367

Accounts receivable trade, net

217,698

142,830

Prepaid expenses and other

14,325

19,224

Total current assets

244,932

190,421

Property and equipment:

Oil and gas properties, successful efforts method

2,166,379

1,812,601

Other property and equipment

45,671

74,064

Total property and equipment

2,212,050

1,886,665

Less accumulated depreciation, depletion and amortization

(203,628)

(73,869)

Total property and equipment, net

2,008,422

1,812,796

Other long-term assets

37,883

40,723

TOTAL ASSETS

$

2,291,237

$

2,043,940

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable trade

$

57,518

$

23,697

Revenues and royalties payable

193,474

151,196

Accrued capital expenditures

38,255

20,155

Accrued liabilities and other

35,572

42,007

Accrued lease operating expenses

22,730

23,457

Taxes payable

16,744

11,997

Derivative liabilities

299,602

49,485

Total current liabilities

663,895

321,994

Long-term debt

72,000

360,000

Asset retirement obligations

85,120

91,864

Operating lease obligations

15,550

17,415

Long-term derivative liabilities

83,355

9,750

Other long-term liabilities

2,159

14,113

Total liabilities

922,079

815,136

Commitments and contingencies

Equity:

Successor common stock, $0.001 par value, 500,000,000 shares authorized; 39,127,389 issued and outstanding as of September 30, 2021 and 38,051,125 issued and outstanding as of December 31, 2020

39

38

Additional paid-in capital

1,194,319

1,189,693

Accumulated earnings

174,800

39,073

Total equity

1,369,158

1,228,804

TOTAL LIABILITIES AND EQUITY

$

2,291,237

$

2,043,940

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

Successor

Predecessor

Three Months Ended September 30, 2021

One Month Ended September 30, 2020

 

  

Two Months Ended August 31, 2020

OPERATING REVENUES

Oil, NGL and natural gas sales

$

394,333

$

61,084

$

122,558

Purchased gas sales

6,704

-

-

Total operating revenues

401,037

61,084

122,558

OPERATING EXPENSES

Lease operating expenses

56,562

18,526

32,646

Transportation, gathering, compression and other

8,835

1,980

4,259

Purchased gas expense

5,496

-

-

Production and ad valorem taxes

28,712

5,908

10,362

Depreciation, depletion and amortization

51,927

20,110

71,240

Exploration and impairment

3,446

4,207

10,217

General and administrative

11,961

10,345

16,513

Derivative (gain) loss, net

122,559

(30,594)

43,125

(Gain) loss on sale of properties

(90,194)

395

1,280

Amortization of deferred gain on sale

-

-

(1,171)

Total operating expenses

199,304

30,877

188,471

INCOME (LOSS) FROM OPERATIONS

201,733

30,207

(65,913)

OTHER INCOME (EXPENSE)

Interest expense

(3,871)

(2,128)

(11,379)

Other income

300

6

139

Reorganization items, net

-

-

259,232

Total other income (expense)

(3,571)

(2,122)

247,992

INCOME BEFORE INCOME TAXES

198,162

28,085

182,079

INCOME TAX EXPENSE (BENEFIT)

Current

-

2,316

-

Deferred

-

(14,501)

(55,346)

Total income tax benefit

-

(12,185)

(55,346)

NET INCOME

$

198,162

$

40,270

$

237,425

INCOME PER COMMON SHARE

Basic

$

5.07

$

1.06

$

2.60

Diluted

$

5.00

$

1.06

$

2.60

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

39,121

38,051

91,464

Diluted

39,622

38,051

91,464

(Continued)

6

Table of Contents

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

Successor

Predecessor

Nine Months Ended September 30, 2021

One Month Ended September 30, 2020

 

  

Eight Months Ended August 31, 2020

OPERATING REVENUES

Oil, NGL and natural gas sales

$

1,048,995

$

61,084

$

459,004

Purchased gas sales

11,079

-

-

Total operating revenues

1,060,074

61,084

459,004

OPERATING EXPENSES

Lease operating expenses

180,083

18,526

158,228

Transportation, gathering, compression and other

23,306

1,980

22,266

Purchased gas expense

8,576

-

-

Production and ad valorem taxes

78,531

5,908

41,204

Depreciation, depletion and amortization

157,274

20,110

338,757

Exploration and impairment

8,115

4,207

4,184,830

General and administrative

34,247

10,345

91,816

Derivative (gain) loss, net

524,661

(30,594)

(181,614)

(Gain) loss on sale of properties

(100,304)

395

927

Amortization of deferred gain on sale

-

-

(5,116)

Total operating expenses

914,489

30,877

4,651,298

INCOME (LOSS) FROM OPERATIONS

145,585

30,207

(4,192,294)

OTHER INCOME (EXPENSE)

Interest expense

(12,955)

(2,128)

(73,054)

Gain on extinguishment of debt

-

-

25,883

Interest income and other

3,097

6

211

Reorganization items, net

-

-

217,419

Total other income (expense)

(9,858)

(2,122)

170,459

INCOME (LOSS) BEFORE INCOME TAXES

135,727

28,085

(4,021,835)

INCOME TAX EXPENSE (BENEFIT)

Current

-

2,316

2,718

Deferred

-

(14,501)

(59,092)

Total income tax benefit

-

(12,185)

(56,374)

NET INCOME (LOSS)

$

135,727

$

40,270

$

(3,965,461)

INCOME (LOSS) PER COMMON SHARE

Basic

$

3.48

$

1.06

$

(43.37)

Diluted

$

3.44

$

1.06

$

(43.37)

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

38,963

38,051

91,423

Diluted

39,479

38,051

91,423

The accompanying notes are an integral part of these condensed consolidated financial statements.

(Concluded)

7

Table of Contents

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

Successor

Predecessor

   

Nine Months Ended September 30, 2021

  

One Month Ended September 30, 2020

 

  

Eight Months Ended August 31, 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

$

135,727

$

40,270

$

(3,965,461)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation, depletion and amortization

157,274

20,110

338,757

Deferred income tax benefit

-

(14,501)

(59,092)

Amortization of debt issuance costs, debt discount and debt premium

2,660

371

13,535

Stock-based compensation

7,508

-

4,188

Amortization of deferred gain on sale

-

-

(5,116)

(Gain) loss on sale of properties

(100,304)

395

927

Oil and gas property impairments

5,130

-

4,161,885

Gain on extinguishment of debt

-

-

(25,883)

Non-cash derivative (gain) loss

326,395

(29,563)

(136,131)

Non-cash reorganization items, net

-

-

(274,588)

Other, net

(6,103)

(438)

(223)

Changes in current assets and liabilities:

Accounts receivable trade, net

(73,198)

7,752

181,416

Prepaid expenses and other

4,351

1,133

(5,491)

Accounts payable trade and accrued liabilities

26,455

(18,163)

(46,734)

Revenues and royalties payable

35,452

1,261

(56,504)

Taxes payable

4,982

3,013

(12,872)

Net cash provided by operating activities

526,329

11,640

112,613

CASH FLOWS FROM INVESTING ACTIVITIES

Drilling and development capital expenditures

(151,394)

(9,040)

(238,456)

Acquisition of oil and gas properties

(272,043)

(162)

(493)

Other property and equipment

(3,539)

56

(1,072)

Proceeds from sale of properties

179,680

532

29,273

Net cash used in investing activities

(247,296)

(8,614)

(210,748)

CASH FLOWS FROM FINANCING ACTIVITIES

Borrowings under Credit Agreement

1,262,000

75,000

425,328

Repayments of borrowings under Credit Agreement

(1,550,000)

(100,000)

-

Borrowings under Predecessor Credit Agreement

-

-

1,185,000

Repayments of borrowings under Predecessor Credit Agreement

-

-

(1,402,259)

Repurchase of 1.25% Convertible Senior Notes due 2020

-

-

(52,890)

Debt issuance costs

-

-

(12,784)

Principal payments on finance lease obligations

(3,610)

(498)

(3,198)

Restricted stock used for tax withholdings

(2,881)

-

(307)

Net cash provided by (used in) financing activities

$

(294,491)

$

(25,498)

$

138,890

(Continued)

8

Table of Contents

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

Successor

Predecessor

   

Nine Months Ended September 30, 2021

  

One Month Ended September 30, 2020

 

  

Eight Months Ended August 31, 2020

NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH

$

(15,458)

$

(22,472)

$

40,755

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Beginning of period

28,367

49,407

8,652

End of period

$

12,909

$

26,935

$

49,407

SUPPLEMENTAL CASH FLOW DISCLOSURES

Interest paid, net of amounts capitalized

$

8,739

$

301

$

80,220

Cash paid for reorganization items

$

396

$

14,353

$

33,238

NONCASH INVESTING ACTIVITIES

Accrued capital expenditures and accounts payable related to property additions

$

42,606

$

23,245

$

26,796

NONCASH FINANCING ACTIVITIES

Derivative termination settlement payments used to repay borrowings under Predecessor Credit Agreement

$

-

$

-

$

157,741

The accompanying notes are an integral part of these condensed consolidated financial statements.

(Concluded)

9

Table of Contents

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (unaudited)

(in thousands)

Additional

Accumulated

Common Stock

Paid-in

Earnings

Total

Shares

Amount

Capital

(Deficit)

Equity

BALANCES - January 1, 2020 (Predecessor)

91,744

$

92

$

6,409,991

$

(2,385,112)

$

4,024,971

Net loss

-

-

-

(3,628,571)

(3,628,571)

Adjustment to equity component of Convertible Senior Notes upon extinguishment

-

-

(3,461)

-

(3,461)

Restricted stock issued

185

-

-

-

-

Restricted stock forfeited

(238)

-

-

-

-

Restricted stock used for tax withholdings

(54)

-

(304)

-

(304)

Stock-based compensation

-

-

2,068

-

2,068

BALANCES - March 31, 2020 (Predecessor)

91,637

92

6,408,294

(6,013,683)

394,703

Net loss

-

-

-

(574,315)

(574,315)

Stock-based compensation

-

-

1,333

-

1,333

BALANCES - June 30, 2020 (Predecessor)

91,637

92

6,409,627

(6,587,998)

(178,279)

Net income

-

-

-

237,425

237,425

Restricted stock issued

9

-

-

-

-

Restricted stock used for tax withholdings

(4)

-

(4)

-

(4)

Stock-based compensation

-

-

787

-

787

Cancellation of Predecessor equity

(91,642)

(92)

(6,410,410)

6,350,573

(59,929)

BALANCES - August 31, 2020 (Predecessor)

-

$

-

$

-

$

-

$

-

Issuance of Successor equity

38,051

$

38

$

1,159,818

$

-

$

1,159,856

Issuance of Successor warrants

-

-

29,360

-

29,360

BALANCES - September 1, 2020 (Successor)

38,051

38

1,189,178

-

1,189,216

Net income

-

-

-

40,270

40,270

BALANCES - September 30, 2020 (Successor)

38,051

$

38

$

1,189,178

$

40,270

$

1,229,486

BALANCES - January 1, 2021 (Successor)

38,051

$

38

$

1,189,693

$

39,073

$

1,228,804

Net loss

-

-

-

(946)

(946)

Common stock issued in settlement of bankruptcy claims

949

1

(1)

-

-

Restricted stock issued

95

-

-

-

-

Restricted stock used for tax withholdings

(41)

-

(1,357)

-

(1,357)

Stock-based compensation

-

-

2,309

-

2,309

BALANCES - March 31, 2021 (Successor)

39,054

39

1,190,644

38,127

1,228,810

Net loss

-

-

-

(61,489)

(61,489)

Restricted stock issued

37

-

-

-

-

Restricted stock used for tax withholdings

-

-

(4)

-

(4)

Stock-based compensation

-

-

2,455

-

2,455

BALANCES - June 30, 2021 (Successor)

39,091

39

1,193,095

(23,362)

1,169,772

Net income

-

-

-

198,162

198,162

Restricted stock issued

64

-

-

-

-

Restricted stock used for tax withholdings

(28)

-

(1,520)

-

(1,520)

Stock-based compensation

-

-

2,744

-

2,744

BALANCES - September 30, 2021 (Successor)

39,127

$

39

$

1,194,319

$

174,800

$

1,369,158

The accompanying notes are an integral part of these condensed consolidated financial statements.

10

Table of Contents

WHITING PETROLEUM CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1.          BASIS OF PRESENTATION

Description of Operations—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.  Unless otherwise specified or the context otherwise requires, all references in these notes to “Whiting” or the “Company” are to Whiting Petroleum Corporation, together with its consolidated subsidiaries, Whiting Oil and Gas Corporation (“Whiting Oil and Gas” or “WOG”), Whiting US Holding Company, Whiting Canadian Holding Company ULC, Whiting Resources LLC (“WRC,” formerly Whiting Resources Corporation) and Whiting Programs, Inc.  In September 2020, Whiting US Holding Company merged with and into WOG with WOG surviving, and WRC transferred all of its operating assets to WOG.  In November 2020, WRC, over a series of steps, was amalgamated with Whiting Canadian Holding Company ULC and subsequently dissolved.  When the context requires, the Company refers to these entities separately.  

Voluntary Reorganization under Chapter 11 of the Bankruptcy Code—On April 1, 2020 (the “Petition Date”), Whiting Petroleum Corporation, Whiting Oil and Gas, Whiting US Holding Company, Whiting Canadian Holding Company ULC and Whiting Resources Corporation (collectively, the “Debtors”) commenced voluntary cases (the “Chapter 11 Cases”) under chapter 11 of the Bankruptcy Code.  On June 30, 2020, the Debtors filed the Joint Chapter 11 Plan of Reorganization of Whiting Petroleum Corporation and its Debtor affiliates (as amended, modified and supplemented, the “Plan”).  On August 14, 2020, the Bankruptcy Court confirmed the Plan and on September 1, 2020 (the “Emergence Date”), the Debtors satisfied all conditions required for Plan effectiveness and emerged from the Chapter 11 Cases.  

Upon emergence, the Company adopted fresh start accounting in accordance with FASB ASC Topic 852 – Reorganizations (“ASC 852”), which specifies the accounting and financial reporting requirements for entities reorganizing through chapter 11 bankruptcy proceedings.  The application of fresh start accounting resulted in a new basis of accounting and the Company becoming a new entity for financial reporting purposes.  As a result of the implementation of the Plan and the application of fresh start accounting, the consolidated financial statements after the Emergence Date are not comparable to the consolidated financial statements before that date and the historical financial statements on or before the Emergence Date are not a reliable indicator of the Company’s financial condition and results of operations for any period after its adoption of fresh start accounting.  Refer to the “Fresh Start Accounting” footnote for more information.  References to “Successor” refer to the Company and its financial position and results of operations after the Emergence Date.  References to “Predecessor” refer to the Company and its financial position and results of operations on or before the Emergence Date.  References to “Current Successor Quarter” and “Current Successor YTD Period” relate to the three and nine months ended September 30, 2021, respectively.  References to “Prior Successor Period” relate to the period of September 1, 2020 through September 30, 2020.  References to “Predecessor Period” and “Predecessor YTD Period” relate to the periods of July 1, 2020 through August 31, 2020 and January 1, 2020 through August 31, 2020, respectively.  The Company previously evaluated the events between August 31, 2020 and September 1, 2020 and concluded that the use of an accounting convenience date of August 31, 2020 did not have a material impact on the Company’s financial position or results of operations.

During the Predecessor YTD Period, the Company applied ASC 852 in preparing the condensed consolidated financial statements, which requires distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business.  Accordingly, certain expenses, realized gains and losses and provisions for losses that were realized or incurred during the Chapter 11 Cases, including adjustments to the carrying value of certain indebtedness, were recorded as reorganization items, net in the condensed consolidated statements of operations for the Predecessor periods.  Refer to the “Chapter 11 Emergence” footnote for more information on the events of the bankruptcy proceedings as well as the accounting and reporting impacts of the reorganization during the Predecessor YTD Period.

Condensed Consolidated Financial Statements—The unaudited condensed consolidated financial statements include the accounts of Whiting Petroleum Corporation and its consolidated subsidiaries.  Investments in entities which give Whiting significant influence, but not control, over the investee are accounted for using the equity method.  Under the equity method, investments are stated at cost plus the Company’s equity in undistributed earnings and losses.  All intercompany balances and transactions have been eliminated upon consolidation.  These financial statements have been prepared in accordance with GAAP and the SEC rules and regulations for interim financial reporting.  In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim results.  However,

11

Table of Contents

operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year.  The condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with Whiting’s consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the period ended December 31, 2020.  Except as disclosed herein, there have been no material changes to the information disclosed in the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the period ending December 31, 2020.

ReclassificationsCertain prior period balances in the condensed consolidated balance sheets have been combined or reclassified to conform to current period presentation pursuant to Rule 10-01(a)(2) of Regulation S-X of the SEC. Such reclassifications had no impact on net income, cash flows or shareholders’ equity previously reported.

Cash, Cash Equivalents and Restricted CashCash equivalents consist of demand deposits and highly liquid investments which have an original maturity of three months or less.  Cash and cash equivalents potentially subject the Company to a concentration of credit risk as substantially all of its deposits held in financial institutions were in excess of the Federal Deposit Insurance Corporation insurance limits as of September 30, 2021 and December 31, 2020.  The Company maintains its cash and cash equivalents in the form of money market and checking accounts with financial institutions that are also lenders under its credit agreement.  The Company has not experienced any losses on its deposits of cash and cash equivalents.

Restricted cash as of December 31, 2020 consisted of funds remaining in a professional fee escrow account that were reserved to pay certain professional fees upon emergence from the Chapter 11 Cases.  

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and statements of cash flows (in thousands):

Successor

September 30,

December 31,

2021

2020

Cash and cash equivalents

$

12,909

$

25,607

Restricted cash

-

2,760