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Whiting Petroleum First Quarter 2022 Results

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Whiting Petroleum Corp. announced first quarter 2022 results.

First Quarter 2022 Financial Highlights:

• Revenue was $527 million for the quarter ending March 31, 2022
• Net loss (GAAP) was $37 million or $0.95 per diluted share
• Adjusted net income (non-GAAP) was $185 million or $4.61 per diluted share
• Adjusted EBITDAX (non-GAAP) was $248 million
• Net cash provided by operating activities (GAAP) was $209 million
• Adjusted free cash flow (non-GAAP) was $150 million
• March 31, 2022 debt was $50 million

Whiting and Oasis Merger Update

On March 7, 2022, Whiting and Oasis Petroleum Inc. ("Oasis") entered into an agreement to combine in a merger of equals transaction (the "proposed transaction"). This proposed transaction is expected to create a premier Williston Basin energy company with top-tier assets, significant scale and enhanced free cash flow generation to return capital to shareholders. The completion of the proposed transaction, which is expected to occur in the second half of 2022, remains subject to the approval of Whiting and Oasis stockholders and the satisfaction of other customary closing conditions.

First Quarter 2022 Results

Revenue for the first quarter of 2022 increased $53 million to $527 million when compared to the fourth quarter of 2021, primarily due to increased commodity prices between periods.

Net loss for the first quarter of 2022 was $37 million, or $0.95 per share, as compared to net income of $292 million, or $7.34 per share, for the fourth quarter of 2021. Adjusted net income (non-GAAP) for the first quarter of 2022 was $185 million, or $4.61 per diluted share, as compared to $168 million, or $4.23 per diluted share, for the fourth quarter of 2021. The primary difference between net income and adjusted net income for all 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 first quarter of 2022 was $248 million compared to $226 million for the fourth quarter of 2021. Net cash provided by operating activities was $209 million in the first quarter and adjusted free cash flow (non-GAAP) was $150 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 for the first quarter averaged 89.0 thousand barrels of oil equivalent per day (MBOE/d) compared to the previous quarter of 92.8 MBOE/d. The decrease was primarily due to transitory downstream impacts related to ethane recovery during the quarter. Oil production averaged 52.4 thousand barrels of oil per day (MBO/d) which remained consistent compared to 52.9 MBO/d in the fourth quarter 2021. Subsequent to the first quarter of 2022, adverse winter weather reduced the productive capacity of the Williston Basin. While the near-term impact on production is meaningful, the Company's previous 2022 annual guidance of 91.0 to 95.0 MBOE/d remains intact.

Capital expenditures in the first quarter of 2022 were $91 million compared to the fourth quarter 2021 spend of $66 million. During the quarter, the Company drilled 17 gross/12.4 net operated wells and turned in line 11 gross/6.6 net operated wells. As of March 31, 2022, the Company has 32 gross (22.8 net) drilled uncompleted wells.

Lease operating expense (LOE) for the first quarter of 2022 was $73 million compared to $62 million in the fourth quarter of 2021. The increase was primarily due to a combination of inflationary costs as well as more workovers. General and administrative expenses in the first quarter of 2022 were $19 million compared to $15 million in the fourth quarter of 2021. The first quarter of 2022 included approximately $6.1 million of costs related to the proposed merger with Oasis. The first quarter of 2022 and the fourth quarter of 2021 included approximately $4 million and $3 million, respectively, of non-cash stock compensation costs. Oil differentials as compared to WTI for the first quarter of 2022 were wider than expected due to prior period revenue adjustments related to the reallocation of leaseholds near the Missouri River. Whiting expects the oil differential to improve throughout the remainder of the year resulting in an annual average within the previous guidance.

Liquidity

As of December 31, 2021, the Company had a borrowing base of $750 million on its revolving credit facility with $50 million of borrowings and unrestricted cash of $0.2 million, resulting in total liquidity of $700 million, net of outstanding letters of credit. Whiting expects to continue to fund its 2022 operations and its dividend fully within operating cash flow.

Closing of Previously Announced Acquisition

On March 17, 2022, Whiting completed the previously announced acquisition of additional interests in oil and gas properties located in Mountrail County, North Dakota for an aggregate unadjusted purchase price of $240 million. This transaction was funded with cash on hand and borrowings under the Company's revolving credit facility.