DENVER--(BUSINESS WIRE)--Whiting Petroleum Corporation (NYSE: WLL) (“Whiting” or the “Company”) today announced second quarter 2021 results.
Second Quarter 2021 Highlights
- Revenue was $352 million for the quarter ending June 30, 2021
- Net loss (GAAP) was $62 million or $1.57 per diluted share
- Adjusted net income (non-GAAP) was $118 million or $3.01 per diluted share
- Adjusted EBITDAX (non-GAAP) was $176 million
- June 30, 2021 net debt of $98 million (non-GAAP)
Lynn A. Peterson, President and CEO commented, "Our team is delivering positive results and the economic conditions continue to be in our favor. We generated net cash provided by operating activities of $183 million and $111 million in adjusted free cash flow during the quarter and over $200 million through six months. We have reinvested approximately a third of our EBITDAX back into our operations with the balance used to rapidly reduce our debt position. Subsequent to the quarter, the Company announced the purchase of assets within our Sanish field in North Dakota and the divestiture of our Redtail assets in Colorado. These transactions will increase our inventory life with higher return locations and will better focus our asset portfolio. These transactions show the flexibility provided by Whiting’s balance sheet, liquidity and cash flow generation. With our operating results to date and our improving outlook for the year, we are updating our guidance for 2021 as discussed below. We have increased our expectations for production and cash flows, while maintaining our capex investments in 2021 at the higher end of our previous guidance.”
Second Quarter 2021 Results
Revenue for the second quarter of 2021 increased $44 million to $352 million when compared to the first quarter of 2021, primarily due to increased commodity prices between periods.
Net loss for the second quarter of 2021 was $62 million, or $1.57 per share, as compared to a net loss of $0.9 million, or $0.02 per share, for the first quarter of 2021. Adjusted net income (non-GAAP) for the second quarter of 2021 was $118 million, or $3.01 per share, as compared to $108 million, or $2.79 per share, for the first quarter of 2021. The primary difference between net loss and adjusted net income for both periods is non-cash expense related to the change in the value of the Company’s hedging portfolio.
The Company’s adjusted EBITDAX (non-GAAP) for the second quarter of 2021 was $176 million compared to $170 million for the first quarter of 2021. This resulted in net cash provided by operating activities of $183 million and adjusted free cash flow (non-GAAP) of $111 million.
Adjusted net income, adjusted net income per share, adjusted EBITDAX and adjusted free cash flow are non-GAAP financial measures. Please refer to the end of this release for disclosures and reconciliations regarding these measures.
Production averaged 92.6 thousand barrels of oil equivalent per day (MBOE/d) and oil production averaged 53.4 thousand barrels of oil per day (MBO/d). Total production benefited from better than forecasted well performance and increased ethane recoveries from our processed natural gas.
Capital expenditures in the second quarter of 2021 were $58 million compared to the first quarter 2021 spend of $56 million. During the quarter, the Company drilled 9 gross/5.6 net operated wells and turned in line 9 gross/5.4 net operated wells. The Company currently has one drilling rig and one completion crew operating in its Sanish Field in North Dakota.
Lease operating expense (LOE) for the second quarter of 2021 was $64 million compared to $59 million in the first quarter of 2021. The increase was primarily due to an increase in well workover costs and certain variable expenses associated with increased activity and production. General and administrative expenses in the second quarter of 2021 of $12 million was a slight increase from the first quarter of 2021 of $10 million. Both quarters included approximately $2.4 million of non-cash stock compensation costs.
During the second quarter, oil differentials improved reflecting a more certain expectation of continued DAPL operations during the EIS. Additionally, as basin total production levels remained relatively flat, there was decreased utilization of pipeline capacity further supporting narrowed differentials.
Full-Year 2021 Guidance
Based on the Company’s increased expectations for the remainder of the year along with the outperformance in the first half of 2021, Whiting adjusted its guidance parameters as shown in the following table. This guidance includes the effect of its previously announced acquisition and divestiture.
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Previous Guidance |
Updated Guidance |
Production (MBOE per day) |
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82 - 88 |
88 - 92 |
Oil production (MBO per day) |
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48 - 52 |
50 - 53 |
Capital expenditures (MM) |
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$ 228 - $ 252 |
$ 240 - $ 252 |
Lease operating expense (MM) |
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$ 220 - $ 245 |
$ 235 - $ 245 |
General and administrative cash expense (MM) (1) |
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$ 48 - $ 52 |
$ 41 - $ 45 |
Oil price wellhead differential to NYMEX per Bbl (2) |
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$ 6.00 - $ 8.00 |
$ 4.50 - $ 6.50 |
1) |
Net of allocations to LOE and reimbursable costs and excludes non-cash equity compensation expense |
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2) |
Includes gathering, transportation and compression |
As a result of this updated guidance along with WTI oil price of $60 per barrel, the Company now expects to generate over $700 million of EBITDAX and over $425 million of adjusted free cash flow in 2021.
Liquidity
As of June 30, 2021, the Company had a borrowing base of $750 million, borrowings of $115 million and unrestricted cash of $17 million, resulting in total liquidity of $650 million, net of outstanding letters of credit. Whiting expects to continue to fund its operations and its previously announced acquisition fully within operating cash flow and proceeds from its divestiture. Based on the above guidance, the Company forecasts to be in a positive net cash position with no outstanding balance on its credit facility by the end of the 2021.
Conference Call
Whiting will host a conference call on Thursday, August 5, 2021 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time) to discuss the second quarter 2021 results. The call will be conducted by President and Chief Executive Officer Lynn A. Peterson, Executive Vice President Finance and Chief Financial Officer James P. Henderson, Executive Vice President Operations and Chief Operating Officer Charles J. Rimer and Investor Relations Manager Brandon Day. A question and answer session will immediately follow the discussion of the results for the quarter.
To participate in this call please dial:
Domestic Dial-in Number (Toll Free U.S. & International): (877) 328-5506, (412) 317-5422 (International)
Webcast URL: https://dpregister.com/sreg/10158599/eb183f25dc
Replay Information:
Conference ID #: 10158599
Replay Dial-In (Toll Free U.S. & International): (877) 344-7529 (U.S.), (412) 317-0088 (International)
Expiration Date: August 13, 2021
Commodity Price Hedging
Whiting currently has approximately 74% of its forecasted crude oil production and 71% of its forecasted natural gas production hedged for the remainder of 2021. The Company uses commodity hedges in order to reduce the effects of commodity price volatility and to satisfy the requirements of its credit facility. The following table summarizes Whiting’s hedging positions as of July 31, 2021:
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Weighted Average |
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Settlement Period |
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Index |
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Derivative Instrument |
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Total Volumes |
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Units |
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Swap Price |
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Floor |
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Ceiling |
Crude Oil |
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2021(1) |
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NYMEX WTI |
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Fixed Price Swaps |
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3,588,000 |
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Bbl |
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$45.40 |
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- |
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- |
2021(1) |
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NYMEX WTI |
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Two-way Collars |
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3,162,000 |
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Bbl |
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- |
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$41.64 |
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$50.50 |
Q1 2022 |
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NYMEX WTI |
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Fixed Price Swaps |
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630,000 |
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Bbl |
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$54.30 |
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- |
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- |
2022 |
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NYMEX WTI |
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Two-way Collars |
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9,559,000 |
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Bbl |
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- |
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$43.22 |
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$53.70 |
Q1-Q3 2023 |
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NYMEX WTI |
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Two-way Collars |
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3,443,500 |
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Bbl |
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- |
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$47.87 |
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$62.53 |
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Total |
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20,382,500 |
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Crude Oil Differentials |
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2021(1) |
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UHC Clearbrook to NYMEX |
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Fixed Price Swaps |
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76,500 |
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Bbl |
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-$1.95 |
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- |
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- |
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Total |
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76,500 |
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Natural Gas |
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2021(1) |
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NYMEX Henry Hub |
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Fixed Price Swaps |
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8,970,000 |
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MMBtu |
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$2.81 |
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- |
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- |
2021(1) |
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NYMEX Henry Hub |
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Two-way Collars |
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5,520,000 |
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MMBtu |
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- |
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$2.60 |
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$2.79 |
Q1-Q3 2022 |
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NYMEX Henry Hub |
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Fixed Price Swaps |
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5,259,000 |
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MMBtu |
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$2.68 |
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- |
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- |
2022 |
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NYMEX Henry Hub |
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Two-way Collars |
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11,824,000 |
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MMBtu |
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- |
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$2.40 |
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$2.90 |
Q1-Q3 2023 |
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NYMEX Henry Hub |
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Two-way Collars |
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6,999,000 |
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MMBtu |
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- |
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$2.41 |
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$2.94 |
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Total |
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38,572,000 |
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Natural Gas Basis |
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2021(1) |
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NNG Ventura to NYMEX |
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Fixed Price Swaps |
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3,680,000 |
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MMBtu |
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-$0.18 |
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- |
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- |
Q1-Q2 2022 |
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NNG Ventura to NYMEX |
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Fixed Price Swaps |
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3,530,000 |
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MMBtu |
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$0.14 |
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- |
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- |
Q1-Q2 2023 |
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NNG Ventura to NYMEX |
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Fixed Price Swaps |
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4,740,000 |
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MMBtu |
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$0.07 |
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- |
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- |
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Total |
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11,950,000 |
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NGL - Propane |
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2021(1) |
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Mont Belvieu |
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Fixed Price Swaps |
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19,320,000 |
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Gallons |
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$0.78 |
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- |
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- |
Q1 2022 |
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Mont Belvieu |
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Fixed Price Swaps |
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3,780,000 |
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Gallons |
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$0.81 |
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- |
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- |
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Total |
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23,100,000 |
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(1) |
Includes settlement periods of July through December 2021. |
Selected Operating and Financial Statistics
References to “Successor” refer to Whiting and its financial position and results of operations after its emergence from reorganization under chapter 11 of the Bankruptcy Code. References to “Predecessor” refer to Whiting and its financial position and results of operations on or before the emergence date (September 1, 2020).
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Successor |
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Three Months Ended |
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June 30, 2021 |
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March 31, 2021 |
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Selected operating statistics: |
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Production |
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Oil (MBbl) |
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4,860 |
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4,822 |
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NGLs (MBbl) |
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1,793 |
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1,559 |
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Natural gas (MMcf) |
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10,666 |
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10,249 |
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Total production (MBOE) |
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8,431 |
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8,090 |
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Average prices |
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Oil (per Bbl): |
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Price received |
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$ |
63.46 |
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$ |
53.24 |
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Effect of crude oil hedging (1) |
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(13.64 |
) |
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(8.16 |
) |
Realized price |
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$ |
49.82 |
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$ |
45.08 |
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Weighted average NYMEX price (per Bbl) (2) |
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$ |
66.03 |
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$ |
57.83 |
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NGLs (per Bbl): |
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Price received |
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$ |
15.76 |
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$ |
17.28 |
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Effect of NGLs hedging (3) |
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(0.47 |
) |
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- |
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Realized price |
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$ |
15.29 |
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$ |
17.28 |
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Natural gas (per Mcf): |
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Price received |
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$ |
1.25 |
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$ |
2.05 |
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Effect of natural gas hedging (4) |
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(0.04 |
) |
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0.01 |
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Realized price |
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$ |
1.21 |
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$ |
2.06 |
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Weighted average NYMEX price (per MMBtu) (2) |
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$ |
2.74 |
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$ |
2.56 |
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Selected operating metrics |
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Sales price, net of hedging ($ per BOE) |
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$ |
33.50 |
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$ |
32.80 |
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Lease operating ($ per BOE) |
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7.61 |
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7.34 |
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Transportation, gathering, compression and other ($ per BOE) |
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0.88 |
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0.87 |
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Depreciation, depletion and amortization ($ per BOE) |
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6.12 |
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6.64 |
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General and administrative ($ per BOE) |
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1.42 |
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1.27 |
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Production and ad valorem taxes (% of sales revenue) |
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7 |
% |
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8 |
% |
(1) |
Whiting paid $66 million and $39 million in pre-tax cash settlements on crude oil hedges during the three months ended June 30, 2021 and March 31, 2021, respectively. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release. |
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(2) |
Average NYMEX prices weighted for monthly production volumes. |
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(3) |
Whiting paid $0.8 million in pre-tax cash settlements on NGL hedges during the three months ended June 30, 2021. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release. |
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(4) |
Whiting paid $0.4 million in pre-tax cash settlements on natural gas hedges during the three months ended June 30, 2021. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release. |
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Successor |
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Predecessor |
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Six Months Ended |
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Six Months Ended |
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June 30, 2021 |
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June 30, 2020 |
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Selected operating statistics: |
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Production |
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Oil (MBbl) |
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9,682 |
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11,811 |
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NGLs (MBbl) |
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3,353 |
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3,440 |
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Natural gas (MMcf) |
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20,916 |
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22,562 |
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Total production (MBOE) |
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16,521 |
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19,011 |
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Average prices |
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Oil (per Bbl): |
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Price received |
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$ |
58.37 |
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$ |
27.42 |
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Effect of crude oil hedging (1) |
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(10.91 |
) |
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|
3.91 |
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Realized price |
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$ |
47.46 |
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$ |
31.33 |
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Weighted average NYMEX price (per Bbl) (2) |
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$ |
61.95 |
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$ |
37.25 |
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NGLs (per Bbl): |
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Price received |
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$ |
16.47 |
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$ |
3.27 |
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Effect of NGLs hedging (3) |
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(0.26 |
) |
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- |
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Realized price |
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$ |
16.21 |
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$ |
3.27 |
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Natural gas (per Mcf): |
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Price received |
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$ |
1.64 |
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$ |
0.06 |
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Effect of natural gas hedging (4) |
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(0.02 |
) |
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|
- |
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Realized price |
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$ |
1.62 |
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$ |
0.06 |
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Weighted average NYMEX price (per MMBtu) (2) |
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$ |
2.65 |
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$ |
1.77 |
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Selected operating metrics |
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Sales price, net of hedging ($ per BOE) |
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$ |
33.16 |
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$ |
20.13 |
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Lease operating ($ per BOE) |
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|
7.48 |
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|
6.61 |
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Transportation, gathering, compression and other ($ per BOE) |
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|
0.88 |
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|
0.95 |
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Depreciation, depletion and amortization ($ per BOE) |
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|
6.38 |
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|
14.07 |
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General and administrative ($ per BOE) |
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|
1.35 |
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|
|
|
3.96 |
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Production and ad valorem taxes (% of sales revenue) |
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|
8 |
% |
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|
9 |
% |
(1) |
Whiting paid $106 million and received $46 million in pre-tax cash settlements on crude oil hedges during the six months ended June 30, 2021 and June 30, 2020, respectively. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release. |
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(2) |
Average NYMEX prices weighted for monthly production volumes. |
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(3) |
Whiting paid $0.8 million in pre-tax cash settlements on NGL hedges during the six months ended June 30, 2021. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release. |
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(4) |
Whiting paid $0.4 million in pre-tax cash settlements on natural gas hedges during the six months ended June 30, 2021. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release. |
Selected Financial Data
For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation’s Quarterly Report on Form 10‑Q for the quarter ended June 30, 2021 filed with the Securities and Exchange Commission.
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Successor |
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Three Months Ended |
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June 30, 2021 |
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March 31, 2021 |
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Selected financial data: |
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(In thousands, except per share data) |
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Total operating revenues |
|
$ |
351,646 |
|
|
$ |
307,391 |
|
Total operating expenses |
|
|
409,431 |
|
|
|
305,754 |
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Total other expense, net |
|
|
3,704 |
|
|
|
2,583 |
|
Net loss |
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|
(61,489 |
) |
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|
(946 |
) |
Per basic share |
|
|
(1.57 |
) |
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|
(0.02 |
) |
Per diluted share |
|
|
(1.57 |
) |
|
|
(0.02 |
) |
Adjusted net income (1) |
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|
117,501 |
|
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|
107,894 |
|
Per basic share |
|
|
3.01 |
|
|
|
2.79 |
|
Per diluted share |
|
|
3.01 |
|
|
|
2.79 |
|
Adjusted EBITDAX (1) |
|
|
176,351 |
|
|
|
170,216 |
|
Net cash provided by operating activities |
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|
183,246 |
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|
|
153,193 |
|
Adjusted free cash flow (1) |
|
|
111,295 |
|
|
|
108,244 |
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|
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Successor |
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Predecessor |
||||
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Six Months Ended |
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Six Months Ended |
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|
|
June 30, 2021 |
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|
June 30, 2020 |
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Selected financial data: |
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(In thousands, except per share data) |
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Total operating revenues |
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$ |
659,037 |
|
|
|
$ |
336,446 |
|
Total operating expenses |
|
|
715,185 |
|
|
|
|
4,462,827 |
|
Total other expense, net |
|
|
6,287 |
|
|
|
|
77,533 |
|
Net loss |
|
|
(62,435 |
) |
|
|
|
(4,202,886 |
) |
Per basic share |
|
|
(1.61 |
) |
|
|
|
(45.98 |
) |
Per diluted share |
|
|
(1.61 |
) |
|
|
|
(45.98 |
) |
Adjusted net income (loss) (1) |
|
|
225,395 |
|
|
|
|
(188,526 |
) |
Per basic share |
|
|
5.80 |
|
|
|
|
(2.06 |
) |
Per diluted share |
|
|
5.80 |
|
|
|
|
(2.06 |
) |
Adjusted EBITDAX (1) |
|
|
346,567 |
|
|
|
|
162,814 |
|
Net cash provided by operating activities |
|
|
336,439 |
|
|
|
|
67,262 |
|
Adjusted free cash flow (1) |
|
|
219,539 |
|
|
|
|
(119,887 |
) |
(1) | Reconciliations of net loss to adjusted net income (loss) and adjusted EBITDAX and net cash provided by operating activities to adjusted free cash flow are included later in this news release. |
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands, except share and per share data) |
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Successor |
||||||
|
|
June 30, |
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December 31, |
||||
|
|
2021 |
|
2020 |
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ASSETS |
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Current assets: |
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash |
|
$ |
19,053 |
|
|
$ |
28,367 |
|
Accounts receivable trade, net |
|
|
214,223 |
|
|
|
142,830 |
|
Prepaid expenses and other |
|
|
14,740 |
|
|
|
19,224 |
|
Total current assets |
|
|
248,016 |
|
|
|
190,421 |
|
Property and equipment: |
|
|
|
|
|
|
||
Oil and gas properties, successful efforts method |
|
|
1,929,550 |
|
|
|
1,812,601 |
|
Other property and equipment |
|
|
68,443 |
|
|
|
74,064 |
|
Total property and equipment |
|
|
1,997,993 |
|
|
|
1,886,665 |
|
Less accumulated depreciation, depletion and amortization |
|
|
(177,084 |
) |
|
|
(73,869 |
) |
Total property and equipment, net |
|
|
1,820,909 |
|
|
|
1,812,796 |
|
Other long-term assets |
|
|
39,189 |
|
|
|
40,723 |
|
TOTAL ASSETS |
|
$ |
2,108,114 |
|
|
$ |
2,043,940 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable trade |
|
$ |
51,786 |
|
|
$ |
23,697 |
|
Revenues and royalties payable |
|
|
191,248 |
|
|
|
151,196 |
|
Accrued capital expenditures |
|
|
22,877 |
|
|
|
20,155 |
|
Accrued liabilities and other |
|
|
35,143 |
|
|
|
42,007 |
|
Accrued lease operating expenses |
|
|
28,642 |
|
|
|
23,457 |
|
Taxes payable |
|
|
16,712 |
|
|
|
11,997 |
|
Derivative liabilities |
|
|
265,130 |
|
|
|
49,485 |
|
Total current liabilities |
|
|
611,538 |
|
|
|
321,994 |
|
Long-term debt |
|
|
115,000 |
|
|
|
360,000 |
|
Asset retirement obligations |
|
|
93,276 |
|
|
|
91,864 |
|
Operating lease obligations |
|
|
16,265 |
|
|
|
17,415 |
|
Long-term derivative liabilities |
|
|
89,354 |
|
|
|
9,750 |
|
Other long-term liabilities |
|
|
12,909 |
|
|
|
14,113 |
|
Total liabilities |
|
|
938,342 |
|
|
|
815,136 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Successor common stock, $0.001 par value, 500,000,000 shares authorized; 39,091,073 issued and outstanding as June 30, 2021 and 38,051,125 issued and outstanding as of December 31, 2020 |
|
|
39 |
|
|
|
38 |
|
Additional paid-in capital |
|
|
1,193,095 |
|
|
|
1,189,693 |
|
Accumulated earnings (deficit) |
|
|
(23,362 |
) |
|
|
39,073 |
|
Total equity |
|
|
1,169,772 |
|
|
|
1,228,804 |
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
2,108,114 |
|
|
$ |
2,043,940 |
|
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
June 30, 2021 |
|
March 31, 2021 |
||||
OPERATING REVENUES |
|
|
|
|
|
|
||
Oil, NGL and natural gas sales |
|
$ |
349,983 |
|
|
$ |
304,679 |
|
Purchased gas sales |
|
|
1,663 |
|
|
|
2,712 |
|
Total operating revenues |
|
|
351,646 |
|
|
|
307,391 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
||
Lease operating expenses |
|
|
64,182 |
|
|
|
59,339 |
|
Transportation, gathering, compression and other |
|
|
7,443 |
|
|
|
7,028 |
|
Purchased gas expense |
|
|
1,178 |
|
|
|
1,902 |
|
Production and ad valorem taxes |
|
|
25,669 |
|
|
|
24,150 |
|
Depreciation, depletion and amortization |
|
|
51,618 |
|
|
|
53,729 |
|
Exploration and impairment |
|
|
2,047 |
|
|
|
2,622 |
|
General and administrative |
|
|
11,995 |
|
|
|
10,291 |
|
Derivative loss, net |
|
|
255,409 |
|
|
|
146,693 |
|
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
- |
|
Total operating expenses |
|
|
409,431 |
|
|
|
305,754 |
|
INCOME (LOSS) FROM OPERATIONS |
|
|
(57,785 |
) |
|
|
1,637 |
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
||
Interest expense |
|
|
(3,981 |
) |
|
|
(5,103 |
) |
Other income |
|
|
277 |
|
|
|
2,520 |
|
Total other expense |
|
|
(3,704 |
) |
|
|
(2,583 |
) |
NET LOSS |
|
$ |
(61,489 |
) |
|
$ |
(946 |
) |
LOSS PER COMMON SHARE |
|
|
|
|
|
|
||
Basic |
|
$ |
(1.57 |
) |
|
$ |
(0.02 |
) |
Diluted |
|
$ |
(1.57 |
) |
|
$ |
(0.02 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
||
Basic |
|
|
39,067 |
|
|
|
38,698 |
|
Diluted |
|
|
39,067 |
|
|
|
38,698 |
|
WHITING PETROLEUM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share data) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Six Months Ended |
|
|
Six Months Ended |
||||
|
|
June 30, 2021 |
|
|
June 30, 2020 |
||||
OPERATING REVENUES |
|
|
|
|
|
|
|
||
Oil, NGL and natural gas sales |
|
$ |
654,662 |
|
|
|
$ |
336,446 |
|
Purchased gas sales |
|
|
4,375 |
|
|
|
|
- |
|
Total operating revenues |
|
|
659,037 |
|
|
|
|
336,446 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
||
Lease operating expenses |
|
|
123,521 |
|
|
|
|
125,582 |
|
Transportation, gathering, compression and other |
|
|
14,471 |
|
|
|
|
18,007 |
|
Purchased gas expense |
|
|
3,080 |
|
|
|
|
- |
|
Production and ad valorem taxes |
|
|
49,819 |
|
|
|
|
30,842 |
|
Depreciation, depletion and amortization |
|
|
105,347 |
|
|
|
|
267,517 |
|
Exploration and impairment |
|
|
4,669 |
|
|
|
|
4,174,613 |
|
General and administrative |
|
|
22,286 |
|
|
|
|
75,303 |
|
Derivative (gain) loss, net |
|
|
402,102 |
|
|
|
|
(224,739 |
) |
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
|
(353 |
) |
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(3,945 |
) |
Total operating expenses |
|
|
715,185 |
|
|
|
|
4,462,827 |
|
LOSS FROM OPERATIONS |
|
|
(56,148 |
) |
|
|
|
(4,126,381 |
) |
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
||
Interest expense |
|
|
(9,084 |
) |
|
|
|
(61,675 |
) |
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
25,883 |
|
Interest income and other |
|
|
2,797 |
|
|
|
|
72 |
|
Reorganization items |
|
|
- |
|
|
|
|
(41,813 |
) |
Total other expense |
|
|
(6,287 |
) |
|
|
|
(77,533 |
) |
LOSS BEFORE INCOME TAXES |
|
|
(62,435 |
) |
|
|
|
(4,203,914 |
) |
INCOME TAX EXPENSE (BENEFIT) |
|
|
|
|
|
|
|
||
Current |
|
|
- |
|
|
|
|
2,718 |
|
Deferred |
|
|
- |
|
|
|
|
(3,746 |
) |
Total income tax benefit |
|
|
- |
|
|
|
|
(1,028 |
) |
NET LOSS |
|
$ |
(62,435 |
) |
|
|
$ |
(4,202,886 |
) |
LOSS PER COMMON SHARE |
|
|
|
|
|
|
|
||
Basic |
|
$ |
(1.61 |
) |
|
|
$ |
(45.98 |
) |
Diluted |
|
$ |
(1.61 |
) |
|
|
$ |
(45.98 |
) |
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
|
|
|
||
Basic |
|
|
38,883 |
|
|
|
|
91,409 |
|
Diluted |
|
|
38,883 |
|
|
|
|
91,409 |
|
About Non-GAAP Financial Measures
WHITING PETROLEUM CORPORATION Reconciliation of Net Loss to Adjusted Net Income (in thousands, except per share data) |
||||||||
|
|
|
|
|
|
|
||
|
|
Successor |
||||||
|
|
Three Months Ended |
||||||
|
|
June 30, 2021 |
|
March 31, 2021 |
||||
Net loss |
|
$ |
(61,489 |
) |
|
$ |
(946 |
) |
Adjustments: |
|
|
|
|
|
|
||
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
- |
|
Impairment expense |
|
|
1,250 |
|
|
|
1,441 |
|
Total measure of derivative loss reported under U.S. GAAP |
|
|
255,409 |
|
|
|
146,693 |
|
Total net cash settlements paid on commodity derivatives during the period |
|
|
(67,559 |
) |
|
|
(39,294 |
) |
Adjusted net income (1) |
|
$ |
117,501 |
|
|
$ |
107,894 |
|
Adjusted net income per share, basic (1) |
|
$ |
3.01 |
|
|
$ |
2.79 |
|
Adjusted net income per share, diluted (1) |
|
$ |
3.01 |
|
|
$ |
2.79 |
|
(1) |
Adjusted net income and adjusted net income per share are non-GAAP measures. Management believes they provide useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that adjusted net income is widely used by professional research analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas exploration and production industry, and many investors use the published research of industry research analysts in making investment decisions. Adjusted net income and adjusted net income per share should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under U.S. GAAP and may not be comparable to other similarly titled measures of other companies. |
WHITING PETROLEUM CORPORATION Reconciliation of Net Loss to Adjusted Net Income (in thousands, except per share data) |
|||||||||
|
|
|
|
|
|
|
|
||
|
|
Successor |
|
|
Predecessor |
||||
|
|
Six Months Ended |
|
|
Six Months Ended |
||||
|
|
June 30, 2021 |
|
|
June 30, 2020 |
||||
Net loss |
|
$ |
(62,435 |
) |
|
|
$ |
(4,202,886 |
) |
Adjustments: |
|
|
|
|
|
|
|
||
Amortization of deferred gain on sale |
|
|
- |
|
|
|
|
(3,945 |
) |
Gain on sale of properties |
|
|
(10,110 |
) |
|
|
|
(353 |
) |
Impairment expense |
|
|
2,691 |
|
|
|
|
4,154,369 |
|
Gain on extinguishment of debt |
|
|
- |
|
|
|
|
(25,883 |
) |
Total measure of derivative (gain) loss reported under U.S. GAAP |
|
|
402,102 |
|
|
|
|
(224,739 |
) |
Total net cash settlements received (paid) on commodity derivatives during the period |
|
|
(106,853 |
) |
|
|
|
46,214 |
|
Reorganization items, net |
|
|
- |
|
|
|
|
41,813 |
|
Restructuring and other one-time costs (1) |
|
|
- |
|
|
|
|
26,884 |
|
Adjusted net income (loss) (2) |
|
$ |
225,395 |
|
|
|
$ |
(188,526 |
) |
Adjusted net income (loss) per share, basic (2) |
|
$ |
5.80 |
|
|
|
$ |
(2.06 |
) |
Adjusted net income (loss) per share, diluted (2) |
|
$ |
5.80 |
|
|
|
$ |
(2.06 |
) |
(1) |
Includes cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for chapter 11 bankruptcy and charges related to a legal settlement. |
|
(2) |
Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. Management believes they provide useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that adjusted net income (loss) is widely used by professional research analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas exploration and production industry, and many investors use the published research of industry research analysts in making investment decisions. Adjusted net income (loss) and adjusted net income (loss) per share should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under U.S. GAAP and may not be comparable to other similarly titled measures of other companies. |
Contacts
Company Contact: Brandon Day
Title: Investor Relations Manager
Phone: 303‑837‑1661
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
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