Exploration & Production | Quarterly / Earnings Reports | Second Quarter (2Q) Update

Whiting Continues to Edit Completion Strategies at Major Projects

Share Print Bookmark    |    Thursday,July 31,2014

Whiting Petroleum Corporation’s production in the second quarter of 2014 totaled a record 10.0 million barrels of oil equivalent (MMBOE), of which 88% was crude oil/natural gas liquids (NGLs).

The production total exceeded the high end of our guidance and equates to an average production rate of 109,760 barrels of oil equivalent per day (BOE/d), which represents a sequential increase of 9.7% over the first quarter 2014 average of 100,065 BOE/d. With our record production, we generated record discretionary cash flow of $556.2 million for the quarter.

Highlights:

• Record Production Reaches 109,760 BOE/d in Q2 2014, Up 9.7% Over Q1 2014, Exceeds High End of Guidance
• Record Bakken/Three Forks Production of 80,195 BOE/d in Q2 2014, Up 33% Over Q2 2013
• Redtail Niobrara Production of 7,235 BOE/d in Q2 2014, Up 59% Over Q1 2014
• Tarpon Well Completed in 2nd Bench of Three Forks Flowing 6,071 BOE/d
• Raising Mid-Point of 2014 Production Guidance to 20% Over 2013
• Q2 2014 Net Income Available to Common Shareholders of $151.4 Million or $1.26 per Diluted Share and Adjusted Net Income of $167.9 Million or $1.40 per Diluted Share
• Q2 2014 Discretionary Cash Flow Totals a Record $556.2 Million

James J. Volker, Whiting’s Chairman and CEO, commented, "Our double-play in the Bakken and Niobrara continued in the second quarter with record production and cash flow. We believe we have plenty of running room in the Williston Basin, particularly in light of our new completion techniques and downspacing programs. Our net production from the Bakken/Three Forks in the second quarter reached a record 80,195 BOE/d, representing a 33% increase over the second quarter of 2013. In the Niobrara, our net production of 7,235 BOE/d in the second quarter represented a sequential 59% increase over the first quarter of 2014.

"Based on our mid-year reserve estimates, the EURs associated with our well completions that used cemented liners and plug-and-perf technology were approximately 23% higher than wells completed with uncemented liners and sliding sleeve completion technology. We believe there could be additional upside from the use of coiled tubing and slickwater frac technologies. Our first slickwater frac, the Sundheim 21-27-1H, achieved a first 120-day production rate that was 44% greater than the offsetting well, which was completed using an uncemented liner and sliding sleeve technology. We plan to utilize more coiled tubing fracs and slickwater fracs in the third quarter of 2014."

Operational Highlights

Whiting has updated both its Bakken/Three Forks and Denver-Julesberg Basin E&P segments, which can be accessed below:

Whiting's Cemented Liner Completions Boost Bakken Results

Whiting Unveils High Density Pilot at Niobrara Redtail Project

Operated Drilling Rig Count

As of July 15, 2014, 18 operated drilling rigs were active on our properties. The breakdown of our operated rigs was as follows:

Operating and Financial Results

The following table summarizes the second quarter operating and financial results for 2014 and 2013:

Capital Budget / Production Guidance

Due to better than expected well results and a higher level of non-operated drilling activity, we are raising our 2014 production guidance and capital budget. We are increasing our capital budget to $2.8 billion from $2.7 billion primarily to reflect the increase in non-operated drilling activity. We are also making a corresponding increase in our 2014 production guidance to a mid-point of 20% over 2013, up from a mid-point of 18% over 2013.

Outlook for 3Q and Full-Year 2014

The following table provides guidance for the third quarter and full-year 2014 based on current forecasts, including Whiting’s full-year 2014 capital budget of $2.8 billion.