Whiting Petroleum reports second quarter results

By Patrick C. Miller | August 01, 2017

Whiting Petroleum Corporation has reported on its financial and operating results for the second quarter.

CEO James Volker said the company plans to reduce capital expenditures to $950 million while increasing production 14 percent from the first quarter to the fourth. He credited this primarily to enhanced completions in the Williston Basin. On average, two pads completed by Whiting in Williams County are tracking above the 1 million barrels of oil equivalent type curve.

Whiting’s production in the second quarter 2017 totaled 10.3 million barrels of oil equivalent (MMBOE), comprised of 83 percent crude oil and natural gas liquids (NGL). Second quarter 2017 production averaged 112,660 barrels of oil equivalent per day (boepd). Ten out of 22 wells completed during the quarter commenced production in June. The production benefit of these wells is expected to be experienced mainly during the second half of 2017.

Whiting’s depreciation, depletion and amortization rate of $21.46 per boe came in below the low end of guidance for $22.25 --$23.25 per boe. The company said this reflects the impact of strong reserve bookings in the Williston Basin area where Whiting recorded a 59 mmboe increase in proved reserves from upward performance revisions, extensions and discoveries. All other metrics were within guidance.

“One of our priorities is to maintain a strong balance sheet while delivering high returns and sustainable growth to investors,” Volker said. “This is a testament to the high quality of our asset base, which is also evident in the strong 23 percent growth in proved reserves from year-end 2016 levels. A large component of this growth was driven by the effect of enhanced completions in the Williston Basin.”

Other Whiting highlights during the second quarter of 2017 included:

- Average production of 112,660 boepd

- Enhanced completions in Williams County exceeding the 1 mmboe type curve

- 69 enhanced completion wells drilled across the Williston Basin since January 2016 that exceed the 1mmboe type curve