Energy Prospectus

Whiting Petroleum Corporation Announces Fourth Quarter and Full-Year 2013 Financial and Operating Results


Record Production of 34.34 MMBOE (94,090 BOE/d) in 2013 Up 14% Over 30.21 MMBOE (82,540 BOE/d) in 2012 [Production more than 1,300 boepd above my forecast].

Year-Over-Year Production Up 21% Pro Forma the Postle Sale

Q4 2013 Production Tops the 100 MBOE/d Milestone; Up 9% Over Q3 2013; Exceeds High End of Guidance

Proved Reserves Increase 16% to a Record 438.5 MMBOE; Proved Reserves Up 31% Excluding Postle Sale Reserves; Company Achieves 402% Reserve Replacement

Q4 2013 Adjusted Net Income of $104.8 Million or $0.88 per Diluted Share

Q4 2013 Discretionary Cash Flow Totals a Record $457.6 Million [in-line with my forecast]

2014 Capital Budget of $2.7 Billion; Year-Over-Year Production Growth Guidance of +17% to +19% [Higher production than what I had in my 2014 forecast].

Whiting Petroleum (WLL): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

My Fair Value Estimate has been increased $10.50/share to $109.00.

Whiting now has over five years of 15% to 20% annual production growth locked in. CFPS for 2014 will be over $16.00 assuming $90/bbl WTI. Whiting has high btu gas that sells at a premium to NYMEX and close to 9,000 bpd of NGLs. This one is definitely a "keeper" for the Sweet 16.

WLL--Whiting Petroleum price target raised to $83 from $71 at RW Baird
Baird raised its price target on Whiting Petroleum following Q4 results. The firm cited better than expected guidance, expectations for upward earnings revisions, and key drilling catalysts over the coming quarters. Shares are Outperform rated.