Whiting Petroleum Corporation’s (WLL) proved reserves, effective December 31, 2014, increased to an estimated 780 million barrels of oil equivalent (“MMBOE”) of which 83% were classified as oil and 90% were classified as oil and natural gas liquids. After replacing 2014 production, this represents a 29% increase over the year-end 2013 combined total for Whiting and Kodiak Oil & Gas Corp. (“Kodiak”) of 606 MMBOE. Whiting’s reserves, including those acquired in the Kodiak acquisition, were independently engineered by Cawley, Gillespie & Associates, Inc.
James J. Volker, Whiting’s Chairman, President and CEO, commented, “The 29% growth in our reserves underpins our strong financial position. Accordingly, on December 19, 2014 our bank syndicate increased our credit commitments to $4.5 billion reflecting our reserves and current market conditions. At year-end 2014, we estimate we will have approximately $1.4 billion drawn, leaving us $3.1 billion of liquidity. Another factor underpinning our solid outlook is the flexibility we have regarding our 2015 capital program. We intend to tailor our 2015 plans to maintain strong liquidity, keep a responsible debt to EBITDAX level and deliver moderate year over year production growth. We believe the company’s strong outlook is further reflected by Moody's Investors Service (Moody's) recent upgrade of Whiting Petroleum Corporation's corporate family rating to Ba1 from Ba2, just one notch below investment grade.”
Mr. Volker continued, “We are also pursuing monetization of select assets that would reduce debt and create up to $1 billion in additional liquidity. Given volatile oil prices, we intend to issue final 2015 guidance on our fourth quarter 2014 results call in February 2015.”
About Whiting
Whiting, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain and Permian Basin regions of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota, the Niobrara play in northeast Colorado and its Enhanced Oil Recovery (“EOR”) field in Texas. The Company trades publicly under the symbol “WLL” on the New York Stock Exchange. For further information, please visit http://www.whiting.com.
WLL
Re: WLL
NEW YORK (TheStreet) -- Shares of Whiting Petroleum Corp. (WLL) are up slightly up after Oppenheimer reiterated its "outperform" rating and $40 price target, while cutting its capital expenditure estimate.
"We are cutting our CAPEX and production estimates, which, along with updated oil prices, leads to lower EPS and cash flow estimates. However, we still see compelling valuation and maintain our rating and target," Oppenheimer said.
Whiting Petroleum intends to issue full guidance on the 4Q14 call in February. Analysts expect the company to cut its previous CAPEX outlook of $3.8 billion given current oil prices.
Oppenheiner believes the company can maintain flat production with $2 billion, but will look to balance liquidity with modest growth and therefore now model CAPEX of $2.8 billion and pro forma production growth of just under 10%.
Additionally, they believe the Denver-based oil and gas company will likely have to repurchase $1.55 billion in Kodiak notes at 101% of par in early January, while funding its capital program in the current environment.
"We are cutting our CAPEX and production estimates, which, along with updated oil prices, leads to lower EPS and cash flow estimates. However, we still see compelling valuation and maintain our rating and target," Oppenheimer said.
Whiting Petroleum intends to issue full guidance on the 4Q14 call in February. Analysts expect the company to cut its previous CAPEX outlook of $3.8 billion given current oil prices.
Oppenheiner believes the company can maintain flat production with $2 billion, but will look to balance liquidity with modest growth and therefore now model CAPEX of $2.8 billion and pro forma production growth of just under 10%.
Additionally, they believe the Denver-based oil and gas company will likely have to repurchase $1.55 billion in Kodiak notes at 101% of par in early January, while funding its capital program in the current environment.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: WLL
An updated Net Income & Cash Flow Forecast model for Whiting Petroleum as been posted under the Sweet 16 Tab.
My Fair Value Estimate has been lowered to $73.30/share because I have lowered my production forecast for 2015. This one is a bit more difficult to forecast because of the merger with KOG and the uncertainty of the non-core assets they will be selling. Regardless, WLL is a rock solid company and I think it is a heck of a buy at today's share price. First Call's Price Target is $66.68.
My valuation is 6X my 2015 cash flow per share forecast of $12.22.
My Fair Value Estimate has been lowered to $73.30/share because I have lowered my production forecast for 2015. This one is a bit more difficult to forecast because of the merger with KOG and the uncertainty of the non-core assets they will be selling. Regardless, WLL is a rock solid company and I think it is a heck of a buy at today's share price. First Call's Price Target is $66.68.
My valuation is 6X my 2015 cash flow per share forecast of $12.22.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group