Whiting to Reduce Bakken Rig Count

Whiting Bakken Acreage Map
Whiting Bakken Acreage Map

In its fourth quarter earning report, Whiting Petroleum announced a record 2014 and revealed a 2015 spending plan that includes reducing Bakken rig count.

In spite of low crude prices, Whiting ended the year with a Q4 profit of $58 million with cash flows totalling $419 million. Oil production was at record numbers for both the quarter (up 13%) and the entire year, which averaged 41.8 MMBOE and was up 22% over 2013.

Related: Whiting Bakken Production Hits Record Levels in Second Quarter

In July of 2014, Whiting Petroleum announced plans to acquire Kodiak Oil & Gas for $3.8 billion. The deal made the combined company the largest Bakken/Three Forks producer, unseating Harold Hamm’s Continental Resources from the top spot.

Read more: Whiting Petroleum Acquires Kodiak Oil & Gas – $3.8 Billion

James J. Volker, Whiting’s Chairman, President and CEO, commented, “2014 was a strong year for Whiting. We set records in production, proved reserves and discretionary cash flow. In the wake of our acquisition of Kodiak Oil & Gas, we became the largest Bakken/Three Forks producer in the Williston Basin.Our 2015 capital budget of $2.0 billion reflects a disciplined approach to maintaining our financial strength while preserving our long-term growth plans.

2015 Spending Plan

Looking to the new year, Whiting plans for the following:

  • Reduce its capital budget to $2 billion
  • $1.8 billion of the 2015 capital budget will go towards exploration and development activity
  • $59 million is allocated for land and $123 million for facilities
  • Production forecast of 59.0 MMBOE, an increase of 42% over 2014
  • Reducing Bakken rig count from 16 to 10
  • Completed well cost in the Bakken will average $7 million, down from $8.5 million in 2014

Read the full report at whiting.com