Whiting Petroleum (WLL) Offers 2011 Year-End Reserves and Updates Guidance, Provides 2012 Production and Capital Spending Guidance
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Production taxes: 26.37M
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Financial Fact:
Production taxes: 26.37M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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As of December 31, 2011, Whiting Petroleum Corporation’s (NYSE: WLL) estimated proved reserves totaled 345.2 million barrels of oil equivalent (MMBOE), an increase of 13.2% over year-end 2010 proved reserves of 304.9 MMBOE.
Approximately 86% of the 2011 year-end reserves were classified as oil/natural gas liquids and 69% were classified as proved developed. The 40.3 MMBOE increase in proved reserves replaced 164% of the Company’s 2011 production of 24.8 MMBOE.
Outlook for Fourth Quarter and Full-Year 2011
We have adjusted our fourth quarter and 2011 production guidance to reflect later arrival dates in mid through late November of our increased number of service rigs. As noted in our third quarter 2011 financial and operating results news release on November 2, 2011, Whiting had 66 wells in the Sanish field area shut-in awaiting service work. We anticipated reducing this to 20 by December 31, 2011. Due to later service rig arrival dates in the fourth quarter, we reduced the number of shut-in wells to 44 as of December 31, 2011. Our production rate for December was 73,240 barrels of oil equivalent (BOE) per day.
As of January 31, 2012, we expect to have placed an additional 10 previously shut-in wells back on production. As we further reduce the remaining number of shut-in wells, we expect production to respond positively, consistent with our forecast for average 2012 full year production between 76,700 BOE – 80,500 BOE per day, an increase of 13% - 19% over the 2011 average of 67,890 BOE per day.
The following tables provide guidance for the fourth quarter and full-year 2011 and first quarter and full-year 2012 based on current forecasts, including Whiting’s full-year 2012 capital budget of $1,600 million.
Whiting forecasts a capital budget of $1,600 million in 2012, which should approximate its 2012 estimated discretionary cash flow. Whiting expects to allocate $1,236 million of the 2012 capital budget to exploration and development activity, $136 million for land, and $228 million for facilities. Based on this level of capital spending, we forecast production of 28.0 MMBOE - 29.5 MMBOE for 2012, an increase of 13% - 19% over our 2011 production of 24.8 MMBOE.
Approximately 86% of the 2011 year-end reserves were classified as oil/natural gas liquids and 69% were classified as proved developed. The 40.3 MMBOE increase in proved reserves replaced 164% of the Company’s 2011 production of 24.8 MMBOE.
Outlook for Fourth Quarter and Full-Year 2011
We have adjusted our fourth quarter and 2011 production guidance to reflect later arrival dates in mid through late November of our increased number of service rigs. As noted in our third quarter 2011 financial and operating results news release on November 2, 2011, Whiting had 66 wells in the Sanish field area shut-in awaiting service work. We anticipated reducing this to 20 by December 31, 2011. Due to later service rig arrival dates in the fourth quarter, we reduced the number of shut-in wells to 44 as of December 31, 2011. Our production rate for December was 73,240 barrels of oil equivalent (BOE) per day.
As of January 31, 2012, we expect to have placed an additional 10 previously shut-in wells back on production. As we further reduce the remaining number of shut-in wells, we expect production to respond positively, consistent with our forecast for average 2012 full year production between 76,700 BOE – 80,500 BOE per day, an increase of 13% - 19% over the 2011 average of 67,890 BOE per day.
The following tables provide guidance for the fourth quarter and full-year 2011 and first quarter and full-year 2012 based on current forecasts, including Whiting’s full-year 2012 capital budget of $1,600 million.
Whiting forecasts a capital budget of $1,600 million in 2012, which should approximate its 2012 estimated discretionary cash flow. Whiting expects to allocate $1,236 million of the 2012 capital budget to exploration and development activity, $136 million for land, and $228 million for facilities. Based on this level of capital spending, we forecast production of 28.0 MMBOE - 29.5 MMBOE for 2012, an increase of 13% - 19% over our 2011 production of 24.8 MMBOE.
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