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Whiting Petroleum First Quarter 2021 Results

Share Print Bookmark    |    Tuesday,May 11,2021

Whiting Petroleum Corp. announced first quarter 2021 results.

First Quarter 2021 Highlights:

• Revenue was $307 million for the quarter ending March 31, 2021
• Net loss (GAAP) was $0.9 million or $0.02 per diluted share
• Adjusted net income (non-GAAP) was $108 million or $2.79 per diluted share
• Adjusted EBITDAX (non-GAAP) was $170 million
• March 31, 2021 net debt of $220 million
• $750 million borrowing base reaffirmed

Lynn A. Peterson, President and CEO commented, "Our team executed and delivered great results during the first quarter, a quarter which provided its share of challenges through the continuing pandemic and the difficult working conditions brought on by the winter. The Company generated over $100 million in adjusted free cash flow during the first quarter, after reinvesting about a third of its EBITDA during the same period. The Company continues to reduce its debt, which was $170 million as of April 30, 2021. In the current commodity environment, we expect to pay down the Company's debt to zero by year-end 2021, putting the Company in an excellent financial position.

"With one quarter in the books, looking ahead at the full year while using a $55 WTI oil price, we expect to generate approximately $550 million in EBITDA and approximately $300 million of adjusted free cash flow, both after estimated hedge losses of $130 million."

First Quarter 2021 Results

Revenue for the first quarter of 2021 increased $95 million to $307 million when compared to the fourth quarter of 2020, primarily due to increased commodity prices between periods.

Net loss for the first quarter of 2021 was $0.9 million, or $0.02 per share, as compared to a net loss of $1.2 million, or $0.03 per share, for the fourth quarter of 2020. Adjusted net income (non-GAAP) for the first quarter of 2021 was $108 million, or $2.79 per share as compared to $55.5 million, or $1.46 per share, for the fourth quarter of 2020. The primary difference between net loss and adjusted net income for both periods is non-cash expense related to the change in value of the Company's hedging portfolio.

The Company's adjusted EBITDAX for the first quarter of 2021 was $170 million compared to $120 million for the fourth quarter of 2020. This resulted in net cash provided by operating activities of $153 million and adjusted free cash flow (non-GAAP) of $108 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 89.9 thousand barrels of oil equivalent per day (MBOE/d) and oil production averaged 53.5 thousand barrels of oil per day (MBO/d). As expected, the Company's production held consistent with levels at year-end 2020 despite winter conditions during the first quarter of 2021.

Capital expenditures in the first quarter of 2021 increased to $56 million compared to the fourth quarter 2020 spend of $21 million, as the Company resumed operations following an improvement in commodity prices in late 2020. During the quarter, the Company drilled 6 gross/4.5 net operated wells, completed 15 gross/10.6 net operated wells and turned in line 14 gross/9.8 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 first quarter 2021 increased by $4 million to $59 million when comparing to the fourth quarter 2020. The increase in LOE was driven by increased maintenance with additional workover rigs running due to expected winter conditions. General and administrative expenses of $10 million continued to reflect the effect of previous cost saving measures.

Borrowing Base Reaffirmation and Liquidity

On April 7, 2021, the Company's borrowing base and aggregate commitments under its revolving credit facility were reaffirmed at $750 million. As of March 31, 2021, the Company had borrowings of $245 million and unrestricted cash of $25 million, resulting in total liquidity of $528 million, net of outstanding letters of credit. Whiting expects to continue to fund its operations fully within operating cash flow and to have no outstanding balance on its credit facility by the end of the year.

Commodity Price Hedging

Whiting currently has approximately 71% of its forecasted crude oil production and 75% of its forecasted natural gas production hedged for 2021.