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4Q 2009 Financial and Operating Results – Whiting Petroleum Corp.

Whiting Petroleum Corp. · Feb 25, 2010 · 49 slides

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Slides

  1. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 1
    Whiting Petroleum Corporation 11-7H well (IP: 2,421 BOE/D) (Foreground) Pump installation on the Smith 11- Drilling operations on the TTT Ranch 11- 11-26H (foreground) (Background) Bakken production at the Abbott 11- 11-18H well…
  2. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 2
    Reserve and Resource Information Whiting uses in this presentation the terms proved, probable and possible reserves. Proved reserves are reserves which, by analysis of geoscience and engineering data, can be estimated with reasonable…
  3. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 3
    Company Overview Market Capitalization1 3.8 B Long-term Debt2 779.6 MM Shares Outstanding 50.8 MM Debt/Total Cap2 25.6% Proved reserves3 275.0 MMBOE % Oil 81% RP ratio4 13.6 years Drilling the Federal 397-3G-G1 discovery well…
  4. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 4
    Net Income and Discretionary Cash Flow for the Three Months Ended December 31, 2009 and 2008 Three Months Ended 12/31/09 12/31/08 (In millions, except per share data) Net Income (Loss) ( 11.2) ( 3.0) Net Income (Loss)Per Share (…
  5. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 5
    Consistently Strong Margins Consistently Delivering Strong EBITDA Margins (1) 69.06 65.00 56.35 53.57 55.00 50.52 Whiting Realized Prices(1) 48.13 44.70 45.10/65% 45.00 41.79 35.23 34.26/61% /BOE 31.29/58%…
  6. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 6
    Platform for Continued Growth Quarterly Average Daily Production Proved Reserves (12/31/2009) 3% 55.8 56.7 55.5 55.3 14% 55.0 54.3 Average Daily Production (MBOE/d) 3% 35% 50.5 50.0 44.2 45.0 45% 40.9 40.6 41.1 40.3…
  7. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 7
    Whiting a Top Oil Producer in Three States OKLAHOMA (1) NORTH DAKOTA (2) TEXAS (3) 5 5 17 Total Barrels: 1,469,014 Total Barrels: 7,274,702 Total Barrels: 3,179,800 (1) According to the Oklahoma Corporation Commission for the…
  8. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 8
    Map of Operations Proved Reserves at December 31, 2009 2009 (1) Pre-Tax Q4 2009 PV10% Average Daily Net Oil (2) Gas Total Value (1) Production Core Area (MMBbl) (Bcf) (MMBOE) Oil % (in millions) (MBOE/d) Permian Basin 112.3 66.2…
  9. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 9
    Our Formula for Success Long-lived properties Predictable performance High PDP content Multi-zone potential Permian Basin North Ward Estes field New Rockies exploration Anadarko Basin areas (Lewis & Clark) Postle field…
  10. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 10
    Whiting Total Reserves and Resources at Dec. 31, 2009(1) MBO MBNGL MBO MMCF MBOE % of MBOE PDP 104,286 11,916 116,202 156,867 142,347 18.5% PBP 2,228 390 2,618 13,497 4,867 0.6% PNP 22,589 3,404 25,993 8,418 27,396 3.6% PUD 64,190…
  11. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 11
    Major Fields with Probable and Possible Reserves at December 31, 2009 (1) (2) (3) Capex Region Field MMBOE MM Per BOE Permian North Ward Estes 124 647 5.22 Rockies Sanish 63 586 9.30 Rockies Sulphur Creek 28 328 11.71 Rockies…
  12. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 12
    Whiting Net Asset Value Calculation at Dec. 31, 2009 (1)(2) Using Prices of 75.00/Bbl and 6.00/Mcf Held Flat Oil & NGL Nat. Gas MBO MBNGL MBO MMCF MBOE PV10, M PPD 104,286 11,916 116,202 156,867 142,347 2,754,939 PBP 2,228 390 2,618…
  13. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 13
    Whiting Total Resource Potential at Dec. 31, 2009 (1)(2) Using Prices of 75.00/Bbl and 6.00/Mcf Held Flat Oil & NGL Nat. Gas MBO MBNGL MBO MMCF MBOE PV10, M Lewis & Clark ND 57,567 4,855 62,422 23,894 83,120 827,488 Sanish Field ND…
  14. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 14
    Finding Costs (in Thousands) 2004 2005 2006 2007 2008 2009 Six-Year Total/Avg. (2004 2009) Proved Acquisitions 525,563 906,208 29,778 8,128 294,056 78,800 1,842,533 Unproved Acquisitions 4,401 16,124 38,628 13,598 98,841 12,872…
  15. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 15
    Key Development Areas for 2010 ( in millions) Sanish Field Northern Northern Rockies Rockies Net Wells Capex Existing Properties 48 274 Sanish 2010 Capital Projects Parshall Lewis & Clark Lewis & Clark Net Wells Capex 9 62…
  16. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 16
    Reserve & Production Profiles Avg. Production By Proved Reserves Core Area As of Dec. 31, 2009 Q4 2009 275.0 MMBOE 56.7 MBOE/d 5% 6% 36% 16% 53% 64% 20% Developed Michigan Gulf Coast Undeveloped Mid-Continent…
  17. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 17
    2009 vs. 2010 Exploration & Development Expenditures By Reserve Category 2009 480 MM Actual (1) 2010 830 MM Budget 25% 21% 50% 44% 31% 29% Proved CO2 Recovery Projects (Proved) Non-Proved (1) This amount was not…
  18. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 18
    Whiting Developed & Undeveloped Acreage by Core Area 18
  19. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 19
    Whiting Williston Basin Bakken Activity Basin-wide stratigraphic trap in shale and dolomitic siltstone 192,889 gross; 88,048 net acres in Sanish and Parshall fields Average EUR 850 MBOE/well, average CWC of approximately…
  20. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 20
    Bakken Development in the Northern Rockies Sanish Field Operated; average WI of 62% for currently producing wells As of February 15, 2010, there were 117 producing wells in the Sanish field, of which 74 wells are Whiting operated.…
  21. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 21
    Bakken Development - Sanish and Parshall Fields Non-JV Whiting Units JV Units Drilled in 2009 21
  22. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 22
    Fully Fully Developed, Developed, WLL WLL Operated, Operated, Bakken Bakken and and Three Three Forks Forks Horizontal Horizontal Wells Wells in in Sanish Sanish Field Field Bakken Three Forks Total Current Producers 65 3…
  23. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 23
    30- and 60-day Average Production Rates for Whiting Operated Sanish Field Wells in 2008 Average 1st Average 1st Average 1st IP (BOE/d) 24-hr. 30 Days 60 Days 90 Days Well Name WI NRI Test Date Test (BOE/d) (BOE/d) (BOE/d) 1) McNamara…
  24. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 24
    (Continued) 30- and 60-day Average Production Rates for Whiting Operated Sanish Field Wells in 2009 Avg. 1st 30 Avg. 1st 60 Avg. 1st 90 Well Name WI NRI Test Date IP (BOE/d) 24-hr. Test Days (BOE/d) Days (BOE/d) Days (BOE/d) 1) Platt…
  25. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 25
    30- and 60-day Average Production Rates for Whiting Operated Sanish Field Wells in 2010 Average 1st Average 1st Average 1st IP (BOE/d) 24-hr. 30 Days 60 Days 90 Days Well Name WI NRI Test Date Test (BOE/d) (BOE/d) (BOE/d) 1) TTT…
  26. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 26
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  27. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 27
    Bakken Type Curve - East/Central Sanish (1) (2) Production Profiles in Oil Equivalents East/Central Sanish EUR - 950 MBOE, CAPEX 5.5MM Nymex oil price 60 70 80 10,000 ROI 5.0 6.2 7.3 IRR 154 233 349 Equivalent Daily…
  28. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 28
    Bakken Type Curve - West Sanish (1) (2) (3) Production Profiles in Oil Equivalents - West Sanish EUR - 650 MBOE , CAPEX 5.5MM 10,000 Nymex oil price 60 70 80 ROI 3.0 3.7 4.4 Proved Forecast Range IRR 41 63 87 Equivalent Daily…
  29. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 29
    Enbridge Pipeline Expansion Enbridge to add 30,000 Bbls/d take- Cromer away capacity in Q1 2011 and 85,000 Enbridge expanded its take-away Bbls/d take-away capacity 51,000 Bbls/d to 161,000 capacity in Q2 2013, Bbls/d in early 2010…
  30. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 30
    Finding Cost Comparison Barnett(1) Haynesville(1) Pinedale(2) Bakken(3) Gross EUR (BCFE) 2.65 6.5 5.7 5.1 Gross Well Cost (MM) 2.60 7.0 5.0 5.5 6:1 Conversion Net EUR (MBOE) 331 812 801 697 F&D Cost ( / BOE) 7.85 8.62 6.35 7.89 F&D…
  31. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 31
    Lewis & Clark Area 250 Units / 500 Potential Locations OBJECTIVE Upper Three Forks along pinch- out of the overlying Bakken Shale ACREAGE Buckhorn Buckhorn Ranch Ranch 31-16H 31-16H Whiting has assembled 319,971 3,757 3,757…
  32. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 32
    Sulphur Creek Field (Boies Ranch and Jimmy Gulch) Rio Blanco County, Colorado Whitings net production from the Sulphur Creek field in Rio Blanco County, Colorado, was 6.0 MMcf per day as of February 15, 2010 Whiting owns 10,196…
  33. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 33
    Flat Rock Field Uintah County, Utah 22,029 gross acres (11,454 net) 12.7 MMcfe of daily net production as of February 15, 2010 10 wells in the Entrada formation (11,500 feet) 25 wells in the Wasatch and Dakota formations 95% of…
  34. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 34
    Postle and North Ward Estes Fields Build in Core Areas (1) Postle Field Proved Reserve % Postle Production Forecast (2) Postle Total N. Ward 10.0 Whiting N. Ward Estes Whiting Estes 9.2 130 - 140 MMcf/d Current 8.5 8.5 CO2…
  35. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 35
    Total Postle, N. Ward Estes and Ancillary Properties Fully Developed Costs Per BOE Reserves or Acq. and Net Production Dev. Cost (MM) (Net MMBOE) (/BOE) Acquisition Purchase Price (effective 7/1/05) 802 Remaining Proved at…
  36. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 36
    Development Plans Postle Field Texas County, Oklahoma Total Remaining Capital Expenditures (1) HMU Ph-III Expansion (In Millions) PUMU Optimizations CapEx (2) Drilling, Completion, Workovers & Dry Trail Gas Plant Costs (thru…
  37. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 37
    Postle Quarter-End Net BOE/D Production Postle Field Dec. Production: 9,200 BOE/D 9400 8800 8200 Net boe/d 7600 7000 6400 5800 5200 4600 Apr-07 Apr-08 Apr-09 Jul-07 Oct-07 Jan-07 Jul-08 Oct-08…
  38. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 38
    Development Plans North Ward Estes Field Ward and Winkler Counties, Texas Project Timing and Net Reserves (1) Injection Other CO2 Project Start Date PVPD Proved P2 P3 Total Primary & WF 15 15 1 9 40 Phase 1 2007 - 2008 9 4 4 10…
  39. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 39
    Development Plans North Ward Estes Field Ward and Winkler Counties, Texas Injection CO2 Project Start Date Phase 1 2007 - 2008 Total 2010 - 2030 Remaining Phase 2 2009 - 2010 Capital Expenditures (1) (In Millions) Phase 3 2011 -…
  40. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 40
    North Ward Estes Quarter-End Net BOE/D Production North Ward Estes Field Dec. Production: 7,110 BOE/D 8200 Commencement of CO2 injection in Pilot in May 2007 at 2 7600 MMcf/d CO2 injection reaches 100 MMcf/d in Jan. 2008, Phase…
  41. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 41
    Estimated Oil Recovery Type Curve from CO2 Flood North Ward Estes 41
  42. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 42
    North Ward Estes and Postle Quarter-End Net BOE/D Production North Ward Estes & Postle Field Total Dec. Production: 16,310 BOE/D 18000 16000 Net boe/d 14000 12000 10000 8000 Apr-07 Apr-08 Apr-09 Jul-07…
  43. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 43
    Production Growth (in BOE/D) Net Production from Bakken, Postle and N. Ward Estes 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Bakken 15,300 14,250 15,850 17,300 18,625…
  44. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 44
    Disciplined Financial Approach Maintain conservative financial policy Debt/Capitalization target < 40% 25.6% at December 31, 2009 Utilize oil & gas hedges Hedged approximately 41% of December 2009 oil production (which equals…
  45. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 45
    Total Capitalization ( in thousands) As of December 31, 2009 Cash and Cash Equivalents 11,960 Long-Term Debt: Credit Agreement 160,000 Senior Subordinated Notes 619,585 Total Long-Term Debt 779,585 Stockholders Equity…
  46. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 46
    Disciplined Hedging Strategy Utilize hedges to manage exposure against potential commodity price declines while maintaining pricing upside Employ mix of contracts weighted toward the short-term Existing Crude Oil Hedge Positions…
  47. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 47
    Fixed-Price Marketing Contracts Existing Natural Gas Marketing Contracts (1) Contracted Volumes As a Percentage of Weighted Average Wellhead Price Period (Mcf per Month) December 2009 Production (/Mcf) Q1 2010 689,000 31.0% 5.36 Q2…
  48. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 48
    In Summary Geographically diversified, long- Five core regions; 13.6 (1) year R/P lived reserve base Grown proved reserves 284% from 71.7 MMBOE at Nov. 2003 IPO to 275.0 MMBOE at 12/31/09 Multi-year inventory of Grown production…
  49. 4Q 2009 Financial and Operating Results – Whiting Petroleum Corp. – slide 49
    Discretionary Cash Flow (1) Reconciliation of Net Cash Provided by Operating Activities to Discretionary Cash Flow (In Thousands) Three Months Ended December 31, 2009 2008 Net cash provided by operating activities....... 147,795…

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