Whiting Plans to Drop Bakken Rigs

Whiting Petroleum: 2015 Q2
Whiting Petroleum: 2015 Q2

Whiting petroleum announced second quarter earnings this week that highlighted record production and plans to complete 40 to 50 wells in the Bakken.

Related: Whiting Announces Strong First Quarter

Whiting posted a record quarter with total production at 170,000 BOEs per day. Company operations in the Bakken/Three Forks region represented 80% of total production at 136,000 BOEs a day.

CEO James J. Volker said, “With the recent decline in commodity prices, we have elected to drop an additional three rigs in the second half of the year and run an eight-rig program. In 2016, at a $50 NYMEX oil price, our capital budget and cash flow should be equal, with a relatively flat production profile when compared to Q4 2015. Our budget is flexible. If oil prices are higher than anticipated later this year, we can ramp up and deliver even greater growth.

Other Q2 Highlights

  • Adjusted Net Income of $9.2 Million or $0.04 per Diluted Share
  • Q2 2015 Discretionary Cash Flow Totals $380.7 Million, a 53% Increase Over Q1 2015
  • Enhanced Completions Deliver 40% to 50% Production Increases Across Multiple Williston Basin Areas
  • Redtail Niobrara Field Production of 17,065 BOE/d in Q2 2015, Up 31% Over Q1 2015
  • $185 Million Additional Q2 2015 Non-Core Property Sales; $300 Million of Total Asset Sales in 1H 2015
  • 2015 Capital Budget Revised to $2.15 Billion for 6.5% Production Gro

Whiting Petroleum Corp.'s Stock Crashed 35% in July with analysts speculating that the company's profitability is very correlated to the price of crude.