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