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Whiting Petroleum Corporation Announces Third Quarter 2012 Financial And Operating Results

Whiting Petroleum Corporation’s (NYSE: WLL) production in the third quarter of 2012 totaled 7.60 million barrels of oil equivalent (MMBOE), of which 86% were crude oil/natural gas liquids (NGLs). This third quarter 2012 production total equates to a daily average production rate of 82,615 barrels of oil equivalent (BOE), representing a 17% increase over the third quarter 2011 average daily rate of 70,675 BOE per day. We exited the month of September 2012 producing 84,550 BOE per day.

Production in the first nine months of 2012 totaled 22.29 MMBOE or 81,360 BOE per day. This represents a 22% increase over total production of 18.28 MMBOE or 66,950 BOE per day in the first nine months of 2011.

Effective October 19, 2012, Whiting Oil and Gas entered into an amendment to its existing credit agreement that increased the Company’s borrowing base under the facility from $1.5 billion to $2.5 billion. At Whiting’s request, to reduce fees its lenders will initially commit $2.0 billion of the $2.5 billion. All other terms of the credit agreement remain unchanged.

James J. Volker, Whiting’s Chairman and CEO, commented, “We are pleased to report that our active drilling program is on track for 20% to 23% production growth in 2012. We continue to post some of the best drilling results from the Bakken and Three Forks formations in the Williston Basin. According to the North Dakota Industrial Commission, Whiting’s average well drilled across the Williston Basin remains the most productive over the first 12 months of production of all operators in the Basin. In addition, our Niobrara project in the DJ Basin has scored impressive new well results.”

Mr. Volker continued, “Our Bakken crude is currently trading at a slight premium to NYMEX crude prices as take-away capacity from the Williston Basin continues to expand. The narrower basis differential added to our discretionary cash flow in the third quarter and should have a greater impact in the fourth quarter. For example, on October 15 th our crude oil price was as follows:”

  NYMEX     $ 91.85
Clearbrook Differential $ 1.25
Gathering and Transportation $ (6.34 )
Wellhead Price $ 86.76  
Oct. 15 th Bakken Differential to NYMEX $ (5.09 )
 

Operating and Financial Results

The following table summarizes the third quarter operating and financial results for 2012 and 2011:

 

Three Months Ended September 30,

 

2012

 

2011

 

Change

Production (MBOE/d) 82.62 70.67 17

 %

Discretionary Cash Flow-MM$ (1) 343.4 316.5 8

 %

Realized Price ($/BOE) 67.99 71.80 (5

)%

Total Revenues-MM$ 530.5 487.6 9

 %

Net Income Available to Common Shareholders-MM$ (2) 82.9 206.0 (60

)%

Per Basic Share $ 0.70 $ 1.75 (60

)%

Per Diluted Share $ 0.70 $ 1.74 (60

)%

Adjusted Net Income Available to Common Shareholders-MM$ (3) 86.9 112.9 (23

)%

Per Basic Share $ 0.74 $ 0.96 (23

)%

Per Diluted Share   $ 0.73   $ 0.95   (23

)%

 

Nine Months Ended September 30,

 

2012

 

2011

 

Change

Production (MBOE/d) 81.36 66.95 22

 %

Discretionary Cash Flow-MM$ (1) 1,005.8 913.9 10

 %

Realized Price ($/BOE) 69.41 73.45 (6

)%

Total Revenues-MM$ 1,596.4 1,401.0 14

 %

Net Income Available to Common Shareholders-MM$ (2) 331.7 428.0 (23

)%

Per Basic Share $ 2.82 $ 3.65 (23

)%

Per Diluted Share $ 2.79 $ 3.62 (23

)%

Adjusted Net Income Available to Common Shareholders-MM$ (3) 295.7 332.9 (11

)%

Per Basic Share $ 2.51 $ 2.84 (12

)%

Per Diluted Share   $ 2.49   $ 2.81   (11

)%

(1)   A reconciliation of discretionary cash flow to net cash provided by operating activities is included later in this news release.
(2) For the three and nine months ended September 30, 2011, net income available to common shareholders included $142.5 million and $151.0 million of pre-tax non-cash hedging gains, respectively.
(3) A reconciliation of adjusted net income available to common shareholders to net income available to common shareholders is included later in this news release.
 

Operations Update

Core Development Areas

Bakken and Three Forks Development Sanish Field.

Whiting’s net production from the Sanish field averaged 31,400 BOE per day in the third quarter of 2012. Whiting is generating excellent results from its recent Three Forks drilling operations as it moves into development mode in the central and western portions of the Sanish field. We expect our development plans at Sanish to extend at least through 2014. Highlighting recent results was the completion of the Mildred Roggenbuck 41-24TFX. This cross-unit well was completed on August 28, 2012 flowing 1,695 BOE per day from a 10,005-foot lateral in the Three Forks. This well, which was fracture stimulated in 30 stages, was drilled on the western side of the Sanish field.

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