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2Q 2019 Earnings Presentation – Whiting Petroleum Corp.

Whiting Petroleum Corp. · Aug 1, 2019 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 1
    Second Quarter 2019 Financial and Operating Results August 2019 NYSE: WLL 1
  2. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 2
    Why Whiting Managing the Top-tier people in asset portfolio to A culture of Projecting long- A technology unconventional maximize capital Strong balance communication, term growth and leader in the E&P resource efficiency and…
  3. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 3
    Strategic Vision MAXIMIZE ECONOMIC RETURNS AT THE DRILLING SPACING UNIT LEVEL Strategic Initiatives 1 Industry-leading capital efficiency as measured by cost to add oil-weighted reserves and production Achieve Industry- REDUCE…
  4. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 4
    Implementing New Restructuring Plan to Transform Co. into a Leading, Value-Focused Developer of Unconventional Assets Executing new plan to align Whitings business with current operating environment and drive value The restructuring…
  5. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 5
    Significant Free Cash Flow Generation Free Cash Flow, Millions (1) 400 350 300 250 350 Million 200 Free cash flow generated since Q4 2017 150 100 50 0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 (1)…
  6. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 6
    Leading in Operating Cash Flow in Excess of Capex(1) 400 2018 Cash Flow From Operations Less Capital 260 218 200 28 0 (67) Expenditures (200) (137) (210) (248) (268) (400) (499) (600) (547) (554) (666) (800)…
  7. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 7
    Strong Initial 2019 Well Performance 20 Cum. Oil Production, MBBL/1,000' 18 16 14 12 10 8 6 4 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 Months of Production 2016 2017 2018 2019 Source: RS Energy, Prism. NYSE: WLL 8
  8. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 8
    WLL Lower Decline Provides Competitive Advantage Lower Decline Increases Free Cash Flow Potential Source: Macquarie Research February, 2019. NYSE: WLL 9
  9. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 9
    A Leader in Optimized Completions Generation 1.0 Generation 2.0 Generation 3.0 Generation 4.0 (2010 2012) (2013 2015) (2016 2017) (2018) 240 lbs/ft proppant 390 lbs/ft proppant 930 lbs/ft proppant 600 1,200 lbs/ft proppant 380 stage…
  10. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 10
    A Generation Ahead of the Competition High Intensity Near-Wellbore Completion: Concentrating more of the stimulation near Generation 5.0 the new infill well, lower sand loading, more entry points, more diversion techniques…
  11. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 11
    Capital Efficiency Through Smarter Completions Gen 1 & Gen 2 less effective because: Uncemented liners, one casing exit point per stage, limited fractures created. Resulting large feature fractures contacting water/H2S, poor…
  12. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 12
    Capital Efficiency Through Smarter Completions Gen 4 & Gen 5 Completions more effective because: Cemented liners, limited entry perforating, more perf clusters, diverters. Containing fractures within the productive zone more…
  13. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 13
    The Optimum Frac Design for Each Specific Area Differences in reservoir and mechanical properties exist Example of Multivariate Analysis across the Williston Basin. for a Specific Region Every area requires a customized completion…
  14. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 14
    Superior Completion Efficiency Monthly Pumping Hours Beating a Benchmark in Completion Execution 400 350 348 5% 365 300 29% In 2018 Whiting had 29% better pumping efficiency than the 250 269 Hours North Dakota industry…
  15. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 15
    Williston Basin Overview WILDROSE Asset Details CASSANDRA 2019 capital plan 800 840 million POLAR SANISH / PARSHALL EAST 788,391 gross acres (473,781 net acres) MISSOURI BREAKS Q2 production: 113,191 BOE/d 2019 Drilling…
  16. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 16
    East Williston Overview Asset Overview POD 9 PROJECT SANISH / 285,539 gross acres (163,054 net acres) PARSHALL POD 8 PROJECT 2 ND record wells drilled in EWB during 2Q19: 24,486 well drilled spud to TD in 8.38 days and 18,200 well…
  17. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 17
    McNamara Results a Catalyst for Future Development 2.0 MMBBLs produced in 700 days. Recovery factor of unit is projected to double. Pump-ins successful in protecting Bakken parent wells from negative impacts. Risk reduced on…
  18. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 18
    Pod 8 Three Forks Infill Well Outperform Parent Wells Project Goals Drill a Three Forks infill well and Additional 6 MBO complete utilizing Whiting optimized since infill well completions. Increase recovery from the DSU with 287%…
  19. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 19
    Pod 8 Bakken Infill Wells Outperform Parent Wells Project Goals Infill Wells (1) Drill Three Bakken infill wells and Parent Wells complete utilizing Whiting optimized Parent Well Pre-Infill Forecast completions. Maximize recovery…
  20. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 20
    Bartelson Generation 4 Wells Outperform Parent Well Bartelson Bakken wells demonstrate strong results on the western side of Whitings Sanish acreage. Additional 141 MBO since infill Cumulative Oil (MBbl) 315% Average…
  21. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 21
    North Williston Overview Asset Details 158,104 gross acres (88,084 net acres) WILDROSE Completed Ray Gas Plant buildout 2019 Drilling Catalysts CASSANDRA Cassandra well results PERIOT WELLS Generation 5.0 well results…
  22. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 22
    Cassandra Generation 4.0 Wells Outperform Offsets 200,000 Periot Bakken Well Periot wells are outperforming the nearby offset wells 180,000 Periot Three Forks Well completed by other operators in the area with similar Offset Bakken…
  23. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 23
    South Williston Overview Asset Overview EAST MISSOURI 235,305 gross acres (161,066 net acres) BREAKS Successful initial development in Foreman Butte adds 100+ net risked locations 2019 Drilling Catalysts Foreman Butte area…
  24. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 24
    Unlocking Value at Foreman Butte Acquisition Acquisition 130 million purchase price funded from free cash flow. Closed July 31, 2018. 54,833 net acres overlap in Hidden Bench and East Missouri Breaks acreage. 1,290 BOE/d of…
  25. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 25
    Foreman Butte Generation 5.0 Results Outperform Offsets 30,000 Foreman Butte Wells Foreman Butte Generation 5.0 Generation 5 Foreman Butter Generation 5 completion tests 25,000 outperform the parent wells. Proppant loading…
  26. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 26
    Generation 5.0 Completions Drive Stenehjem Performance 100,000 Stenehjem Wells Stenehjem Generation 5.0 90,000 Generation 5 Stenehjem Generation 5 completion tests outperform the parent wells. 80,000 Proppant loading optimized for…
  27. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 27
    Driving Cash Costs Down 20.00 18.73 18.00 3.80 16.28 16.00 15.47 14.65 Established pipe gathering systems for 13.65 14.00 4.83 produced water. 3.68 4.67 3.70 12.00 3.57 Renegotiated low rates for existing produced…
  28. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 28
    Continuous Improvement in Operations CONTINUALLY IMPROVING DRILLING EFFICIENCY Drilling 35 Industry leading in drilling performance with 64% reduction in SPUD to 30 TD since 2011. Spud to TD - Days 25 23.0 21.7 Utilizing the…
  29. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 29
    Optimization Efforts Lead to Decreased Downtime NORTHERN ROCKIES DOWNHOLE FAILURE CONTINUES TO DECREASE Optimizing Production and Reducing LOE 1.20 Implemented advanced well monitoring and intervention 1.04 techniques utilizing…
  30. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 30
    Why Whiting Managing the Top-tier people in asset portfolio to A culture of Projecting long- A technology unconventional maximize capital Strong balance communication, term growth and leader in the E&P resource efficiency and…
  31. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 31
    Appendix NYSE: WLL 32
  32. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 32
    Top Acreage Position Across the Core Williston Basin WILDROSE CASSANDRA Gross Net Net Wells POLAR SANISH / Area Acres(1) Acres (1) Drilled(2) PARSHALL EAST Cassandra 28,502 13,798 30 MISSOURI BREAKS East Missouri Breaks…
  33. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 33
    Hedge Position (1) Volumes Hedged by Month Contracted Crude Weighted Average As a Percentage of 1,600,000 Derivative Hedge (Average Bbls NYMEX Price June 2019 1,400,000 Instrument Period per Month) (Per Bbl) Oil Production Collars…
  34. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 34
    Strong Balance Sheet Liquidity and Financial Flexibility 1.75 billion of bank credit commitments on a 2.25 billion borrowing base. BOND MATURITY PROFILE AS OF 06/30/2019 ( MILLIONS) 40 million outstanding as of 06/30/2019. Bank…
  35. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 35
    Slower Activity Build Means Less Cost Pressure Change in Rig Count from January 1, 2016 80.0% North Dakota 60.0% Change in Rig Count from January 1, 2016 Texas 40.0% +42% 20.0% +4% 0.0% (20.0%) (40.0%) (60.0%)…
  36. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 36
    Strong Williston Basin Differentials Enhance Cash Flow Bakken Clearbrook Differential 10.00 5.00 Spot Differential per Barrel 0.00 (5.00) (10.00) (15.00) Bakken Clearbrook Spot Price Source: Bloomberg NYSE:…
  37. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 37
    Oil Takeaway Sufficient; Gas & NGL Outlook Improving Multiple New Processing Additions Expected to Alleviate Basin Constraints Source: EIA, North Dakota Pipeline Authority. NYSE: WLL 38
  38. 2Q 2019 Earnings Presentation – Whiting Petroleum Corp. – slide 38
    Reconciliation of Discretionary Cash Flow, Free Cash Flow and Operating Cash Flow in Excess of Capex Three Months Ended Dec. 31, Mar. 31, June 30, Sept. 30, Dec. 31, Mar. 31, Jun. 30 2017 2018 2018 2018 2018 2019 2019 Total Net…

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