Drilling & Completions | Quarterly / Earnings Reports | Second Quarter (2Q) Update | Drilling Activity

Whiting Ramps Up Williston Drilling in Q2; DJ Activity Drops Significantly YOY

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   |    Monday,August 05,2019

Whiting Petroleum Corp. reported its Q2 2019 results - here are the highlights from its report and call.

Whiting has been looking to cut its costs (similar to many E&Ps as private equity investors tighten the purse strings) and made several moves in an effort to improve its balance sheet in Q2:

The company sold off a few Williston properties for $53 million.

Additionally, Whiting announced that it downsized its workforce by 33%, eliminating 254 positions.

Q2 Summary

- Well Activity (gross): TIL 50 wells in Q2 - up +32% YOY

• All completions were in the Williston Basin - last year Whiting had 38 completions in Q2 2018 (22 Williston / 16 Niobrara). The company's Niobrara ops have seemingly been put on hold.
  

- Rigs: 5 rigs running in the Williston / None in DJ Basin - flat YOY

- Q2 D&C Spending: $232 million - up +14% YOY

- Q2 Production: Production averaged 127.1 MBOEPD - up only +1% YOY

• Williston: 113.2 MBOEPD - up +10% YOY

• DJ Basin: 13.1 MBOEPD - down -41% YOY

Back in Q2 2018 - Whiting saw an increase in DJ Basin output while production in the Williston decreased. This year, the company's production totals have flip-flopped with the Williston posting growth while DJ Basin output fell over 40%.

Operations Update - Williston Basin

Second quarter 2019 production averaged 127,090 BOE/d. Williston Basin production averaged 113,191 BOE/d. Redtail field production averaged 13,137 BOE/d. Second quarter oil production averaged 81,980 barrels of oil per day (Bbl/d). Infrastructure constraints and associated operating delays reduced this production by approximately 3,000 Bbl/d. These constraints are projected to persist through the remainder of 2019 as reflected in the Company's updated guidance.

In the Foreman Butte area, Whiting put its first 11 wells on production during the quarter. They produced an average of 910 Bbl/d per well over the first 30 days on production. This compares to historical results in the area that produced an average of 420 Bbl/d per well over a similar period. This 117% increase in productivity stems from the application of Whiting's proprietary completion process. Whiting purchased the Foreman Butte area, which encompasses 54,833 net acres, for $130 million in July of 2018. The property had 1,290 BOE/d at the time of purchase.