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Press release from Business Wire

Whiting Petroleum Corporation Announces First Quarter 2013 Financial and Operating Results

<p class='bwalignc'> <b>Record Production of 89,135 BOE/d in Q1 2013 Up 4% Over 86,055 BOE/d in Q4 2012</b> </p> <p class='bwalignc'> <b>Q1 2013 Net Income Available to Common Shareholders of $86.0 Million or $0.72 per Diluted Share and Adjusted Net Income of $111.6 Million or $0.94 per Diluted Share</b> </p> <p class='bwalignc'> <b>Q1 2013 Discretionary Cash Flow Totals a Record $401.1 Million</b> </p> <p class='bwalignc'> <b>Niobrara Well in DJ Basin Completed Flowing 861 BOE/d</b> </p>

Wednesday, April 24, 2013

Whiting Petroleum Corporation Announces First Quarter 2013 Financial and Operating Results

16:00 EDT Wednesday, April 24, 2013

DENVER (Business Wire) -- Whiting Petroleum Corporation's (NYSE: WLL) production in the first quarter of 2013 totaled a record 8.022 million barrels of oil equivalent (MMBOE), of which 87% were crude oil/natural gas liquids (NGLs). This first quarter 2013 production total equates to a daily average production rate of 89,135 barrels of oil equivalent (BOE), representing a 10% increase over the first quarter 2012 average daily rate of 80,747 BOE per day and a 4% increase over the fourth quarter 2012 average daily rate of 86,055 BOE per day.

James J. Volker, Whiting's Chairman and CEO, commented, “We are off to a strong start in 2013, our 10 th year as a public company. Production in the first quarter of 2013 grew 4% sequentially over the fourth quarter of 2012, and we are on track to post a year-over-year production gain of between 12% and 16%. We are very pleased with our development plan at our Redtail Niobrara prospect in the DJ Basin where our most recent completion came in at 861 barrels of oil equivalent per day. We look forward to stepping up our activity there in the second half of this year.”

Mr. Volker added, “In the Williston Basin, drilling at our Sanish, Pronghorn, Hidden Bench and Tarpon fields continues to underpin our production increases. Recent well results at our Missouri Breaks prospect indicate that this area should also contribute significantly to future production growth.”

Operating and Financial Results

The following table summarizes the first quarter operating and financial results for 2013 and 2012:

Three Months Ended March 31,

      2013     2012     Change
Production (MBOE/d) 89.14 80.75 10 %
Discretionary Cash Flow-MM$ (1) 401.1 351.9 14 %
Realized Price ($/BOE) 74.77 74.17 1 %
Total Revenues-MM$ 613.4 563.7 9 %
Net Income Available to Common Shareholders-MM$ 86.0 98.2 (12)%
Per Basic Share $0.73 $0.84 (13)%
Per Diluted Share $0.72 $0.83 (13)%
Adjusted Net Income Available to Common Shareholders-MM$ (2) 111.6 122.6 (9)%
Per Basic Share $0.95 $1.04 (9)%
Per Diluted Share $0.94 $1.03 (9)%

(1)

  A reconciliation of discretionary cash flow to net cash provided by operating activities is included later in this news release.

(2)

A reconciliation of adjusted net income available to common shareholders to net income available to common shareholders is included later in this news release.
 

Operations Update

Core Development Areas

Williston Basin Development

In the Williston Basin, we control 1,111,802 gross (704,525 net) acres that target the Middle Bakken, Three Forks, Pronghorn Sand and Red River formations. Our average acreage cost in this area is $526 per net acre.

Western Williston Basin

The Western Williston Basin includes our Hidden Bench, Tarpon, Missouri Breaks and Cassandra prospects. These areas represent a total of 182,913 gross (114,454 net) acres. Production from the Western Williston Basin averaged 6,520 BOE per day in the first quarter of 2013, which represented a 27% increase over the 5,120 BOE per day average rate in the fourth quarter of 2012.

Missouri Breaks Prospect. We hold 95,803 gross (65,481 net) acres in the Missouri Breaks prospect, located in Richland County, Montana and McKenzie County, North Dakota. On March 12, 2013, we completed the Miller 34-8-1H in the Middle Bakken formation flowing 1,475 BOE per day, our best rate to date in the field. We have now drilled successful wells on the western, eastern and southern portions of our acreage.

Southern Williston Basin

The Southern Williston Basin encompasses our Pronghorn and Lewis & Clark prospects, which encompass a total of 396,482 gross (262,194 net) acres. First quarter 2013 production from this region averaged 13,800 BOE per day. This daily rate represents a 52% increase over the 9,055 BOE per day rate in the first quarter of 2012.

Sanish Field Area

Whiting's net production from the Sanish field averaged 33,300 BOE per day in the first quarter of 2013, an increase of 16% over the first quarter 2012 average of 28,790 BOE per day. Whiting continues to generate strong results from the field. Highlighting recent results was the completion of the Roggenbuck 21-25H, which was completed in the Middle Bakken formation flowing 2,053 BOE per day on April 3, 2013. This well was drilled on the western edge of the Sanish field. The well's 8,463-foot lateral was fracture stimulated in a total of 26 stages.

We plan to initiate a higher density pilot program in the Sanish field in the second quarter of 2013. If successful, this could add a total of 191 additional Middle Bakken locations. We also plan to refrac several wells at Sanish in 2013.

Red River Plays

Big Island. We currently hold 176,900 gross (125,530 net) acres in the Big Island prospect, which is located in Golden Valley County, North Dakota and Wibaux County, Montana. During the first quarter of 2013, we completed two successful vertical wells in the Upper Red River “D” zone at Big Island. The Stecker 32-9 was completed flowing 308 BOE per day on February 18, 2013, while the Davidson 13-19 flowed 226 BOE per day on March 6, 2013. We are now 11 out of 12 in this highly profitable play.

Starbuck Prospect. We have completed a 283-square-mile 3-D seismic shoot at our Starbuck prospect and are currently interpreting the data in order to identify seismic anomalies in the Upper Red River “D” zone. Our preliminary analysis indicates that there are similar seismic anomalies at Starbuck as our Big Island prospect, where we have identified more than 50 separate prospects. We hold 105,664 gross (91,228 net) acres in the Starbuck prospect, which is located in Roosevelt County, Montana.

Emerging Plays

Denver Basin: Redtail Niobrara Prospect. We hold a total of 120,354 gross (87,610 net) acres in our Redtail prospect, located in the Denver Julesberg Basin in Weld County, Colorado. Our Redtail acreage currently produces from the Niobrara “B” zone and is also prospective in the Niobrara “A” and “C” zones as well as the Codell formation. We estimate that there are up to 35 million barrels of oil in place per section in the Niobrara “B” zone at Redtail.

Highlighting recent drilling results at our Redtail prospect was the completion of the Razor 26-3524H, which flowed 812 barrels of oil and 292 Mcf of gas (861 BOE) per day from the Niobrara “B” zone on April 8, 2013. The well has flowed over 600 BOE per day over the last two weeks. The well's 6,364-foot lateral was fracture stimulated in a total of 32 stages using our new frac design. Whiting holds a 74% working interest and a 59% net revenue interest in the Razor well, which was drilled on a 960-acre spacing unit.

We currently have one drilling rig running at Redtail. We plan to add a second rig that is pad capable around mid-year and a third rig before year-end 2013. Our development plan for the Redtail prospect is to drill eight wells per spacing unit to the Niobrara “B” zone and four wells in each spacing unit to the Niobrara “A” zone. In total, we estimate that we have more than 2,400 gross locations or over 1,200 net locations at our Redtail prospect.

Delaware Basin: Big Tex Prospect. Whiting's lease position at Big Tex consists of 93,207 gross (69,163 net) acres, located primarily in Pecos County, Texas. On January 23, 2013, we completed the May 2502H flowing 674 barrels of oil per day from the Upper Wolfcamp formation. The well's peak 30-day average was 397 barrels of oil per day. The May 2502H is currently producing over 200 barrels of oil per day. Based on the performance of this well, Whiting has elected to move a drilling rig to Big Tex in May 2013. We currently plan to drill at least three horizontal Upper Wolfcamp wells at Big Tex in 2013.

Enhanced Oil Recovery

North Ward Estes Field. Net production from our North Ward Estes field averaged 8,545 BOE per day in the first quarter of 2013. Whiting is currently injecting approximately 335 MMcf of CO2 per day into the field, of which about 67% is recycled gas.

Operated Drilling Rig Count

As of April 15, 2013, 23 operated drilling rigs were active on our properties. The breakdown of our operated rigs as of April 15, 2013 was as follows:

Region

   
 

Northern Rockies

20
Permian Basin --
Central Rockies 1
EOR Projects:
Postle 1
North Ward Estes 1
Total 23
 

Other Financial and Operating Results

The following table summarizes the Company's net production and commodity price realizations for the quarters ended March 31, 2013 and 2012:

    Three Months Ended    
March 31,

Production

  2013         2012   Change
Oil (MMBbl) 6.25 5.58 12 %
NGLs (MMBbl) 0.71 0.66 7 %
Natural gas (Bcf) 6.37 6.60 (4 %)
Total equivalent (MMBOE) 8.02 7.35 9 %
 

Average Sales Price

Oil (per Bbl):
Price received $ 88.11 $ 90.51 (3 %)
Effect of crude oil hedging   (0.85 ) (1)   (2.54 )
Realized price $ 87.26   $ 87.97   (1 %)
NYMEX oil (per Bbl) $ 94.34   $ 102.94   (8 %)
 
NGLs (per Bbl):
Realized price $ 42.56   $ 46.26   (8 %)
 
Natural gas (per Mcf):
Price received $ 3.80 $ 3.43 11 %
Effect of natural gas hedging   -     0.07  
Realized price $ 3.80   $ 3.50   9 %
NYMEX natural gas (per Mcf) $ 3.34   $ 2.72   23 %
 
(1)   Whiting realized pre-tax cash settlement losses of $5.3 million on its crude oil hedges during the first quarter of 2013. A summary of Whiting's outstanding hedges is included later in this news release.
 

First Quarter 2013 Costs and Margins

A summary of production, cash revenues and cash costs on a per BOE basis is as follows:

    Per BOE, Except Production
Three Months Ended
March 31,
2013     2012
Production (MMBOE) 8.02 7.35
 
Sales price, net of hedging $ 74.77 $ 74.17
Lease operating expense 12.45 12.90
Production tax 6.39 6.07
General & administrative 3.60 4.68
Exploration 2.35 1.33
Cash interest expense 2.37 2.19
Cash income tax expense 0.05 0.19
$ 47.56 $ 46.81
 

First Quarter 2013 Drilling and Expenditures Summary

The table below summarizes Whiting's operated and non-operated drilling activity and capital expenditures for the three months ended March 31, 2013:

    Gross/Net Wells Completed    
        Total New     % Success CAPEX
Producing Non-Producing Drilling Rate (in MM)
Q1 13 82 / 38.0 1 / 1.0 83 / 39.0 99% / 97% $ 569.3
 

Outlook for Second Quarter and Full-Year 2013

The following table provides guidance for the second quarter and full-year 2013 based on current forecasts, including Whiting's full-year 2013 capital budget of $2,200.0 million.

   

Guidance

Second Quarter     Full-Year

2013

2013

Production (MMBOE) 8.25 - 8.45 33.80 - 35.00
Lease operating expense per BOE $ 12.30 - $ 12.70 $ 12.30 - $ 12.60
General and admin. expense per BOE $ 3.45 - $ 3.65 $ 3.45 - $ 3.65
Interest expense per BOE $ 2.60 - $ 2.80 $ 2.50 - $ 2.70
Depr., depletion and amort. per BOE $ 25.00 - $ 26.00 $ 25.25 - $ 26.25
Prod. taxes (% of production revenue) 8.50% - 8.70% 8.55% - 8.75%
Oil price differentials to NYMEX per Bbl (1)

(

$ 6.50) - ($ 7.50)

(

$ 6.50) - ($ 7.50)

Gas price premium to NYMEX per Mcf (2) $ 0.20 - $ 0.50 $ 0.20 - $ 0.50
(1)   Does not include the effect of NGLs.
(2) Includes the effect of Whiting's fixed-price gas contracts. Please refer to fixed-price gas contracts later in this news release.
 

Oil Hedges

The following summarizes Whiting's crude oil hedges as of April 1, 2013:

      Weighted Average   As a Percentage of
Derivative Hedge Contracted Volume NYMEX Price March 2013
Instrument Period (Bbls per Month) (per Bbl) Oil Production
 
Three-way Collars (1) 2013
Q2 1,040,000 $ 71.25 - $ 85.63 - $ 113.95 48.5%
Q3 1,040,000 $ 71.25 - $ 85.63 - $ 113.95 48.5%
Q4 1,040,000 $ 71.25 - $ 85.63 - $ 113.95 48.5%
 
Collars 2013
Q2 294,550 $ 48.17 - $ 90.71 13.7%
Q3 294,450 $ 48.16 - $ 90.70 13.7%
Oct 294,340 $ 48.15 - $ 90.69 13.7%
Nov 194,340 $ 47.96 - $ 85.90 9.1%
Dec 4,340 $ 80.00 - $ 122.50 0.2%
 
2014
Q1 4,250 $ 80.00 - $ 122.50 0.2%
Q2 4,150 $ 80.00 - $ 122.50 0.2%
Q3 4,060 $ 80.00 - $ 122.50 0.2%
Q4 3,970 $ 80.00 - $ 122.50 0.2%
 
Swaps 2013
Q2 185,033 $98.50 8.6%
Q3 187,067 $98.50 8.7%
Q4 187,067 $98.50 8.7%
 
2014
Q1 165,000 $94.75 7.7%
Q2 166,833 $94.75 7.8%
Q3 168,667 $94.75 7.9%
Q4 168,667 $94.75 7.9%
 
2015
Q1 150,000 $94.75 7.0%
Q2 151,667 $94.75 7.1%
Q3 153,333 $94.75 7.2%
Q4 153,333 $94.75 7.2%
 
2016
Q1 133,467 $93.50 6.2%
(1)   A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The sold call establishes a maximum price (ceiling) we will receive for the volumes under contract. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price.
 

Whiting also has the following fixed-price natural gas contracts in place as of April 1, 2013:

     
Weighted Average As a Percentage of
Hedge Contracted Volume Contracted Price March 2013
Period (MMBtu per Month) (per MMBtu) Gas Production
 
2013
Q2 364,000 $5.47 16.4%
Q3 368,000 $5.47 16.6%
Q4 368,000 $5.47 16.6%
 
2014
Q1 330,000 $5.49 14.8%
Q2 333,667 $5.49 15.0%
Q3 337,333 $5.49 15.2%
Q4 337,333 $5.49 15.2%
 
   

Selected Operating and Financial Statistics

 

Three Months Ended
March 31,

2013     2012
Selected operating statistics
Production
Oil, MBbl 6,250 5,583
NGLs, MBbl 710 664
Natural gas, MMcf 6,371 6,604
Oil equivalents, MBOE 8,022 7,348
Average Prices
Oil per Bbl (excludes hedging) $ 88.11 $ 90.51
NGLs per Bbl $ 42.56 $ 46.26
Natural gas per Mcf (excludes hedging) $ 3.80 $ 3.43
Per BOE Data
Sales price (including hedging) $ 74.77 $ 74.17
Lease operating $ 12.45 $ 12.90
Production taxes $ 6.39 $ 6.07
Depreciation, depletion and amortization $ 25.08 $ 21.25
General and administrative $ 3.60 $ 4.68 ((1 ))
Selected Financial Data
(In thousands, except per share data)
Total revenues and other income $ 613,371 $ 563,706
Total costs and expenses $ 475,607 $ 406,261
Net income available to common shareholders $ 85,994 $ 98,201
Earnings per common share, basic $ 0.73 $ 0.84
Earnings per common share, diluted $ 0.72 $ 0.83
 
Average shares outstanding, basic 117,788 117,517
Average shares outstanding, diluted 119,263 118,896
Net cash provided by operating activities $ 297,614 $ 352,992
Net cash used in investing activities $ (628,491 ) $ (213,052 )
Net cash provided by (used in) financing activities $ 294,259 $ (145,926 )
 
(1)   For the three months ended March 31, 2012, the price includes the effect of a one-time charge under our Production Participation Plan related to the Whiting USA Trust II divestiture of $1.17 per BOE.
 

Conference Call

The Company's management will host a conference call with investors, analysts and other interested parties on Thursday, April 25, 2013 at 11:00 a.m. EDT (10:00 a.m. CDT, 9:00 a.m. MDT) to discuss Whiting's first quarter 2013 financial and operating results. Please call (866) 515-2911 (U.S./Canada) or (617) 399-5125 (International) to be connected to the call and enter the pass code 71718725. Access to a live Internet broadcast will be available at http://www.whiting.com by clicking on the “Investor Relations” box on the menu and then on the link titled “Webcasts.” Slides for the conference call will be available on this website beginning at 11:00 a.m. (EDT) on April 25, 2013.

A telephonic replay will be available beginning approximately two hours after the call on Thursday, April 25, 2013 and continuing through Thursday, May 2, 2013. You may access this replay at (888) 286-8010 (U.S./Canada) or (617) 801-6888 (International) and entering the pass code 52179437. You may also access a web archive at http://www.whiting.com beginning approximately one hour after the conference call.

About Whiting Petroleum Corporation

Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain, Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States. The Company's largest projects are in the Bakken and Three Forks plays in North Dakota and its Enhanced Oil Recovery fields in Oklahoma and Texas. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.

Forward-Looking Statements

This news release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.

These risks and uncertainties include, but are not limited to: declines in oil, NGL or natural gas prices; our level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development expenditures; our ability to obtain sufficient quantities of CO2 necessary to carry out our enhanced oil recovery projects; inaccuracies of our reserve estimates or our assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; risks related to our level of indebtedness and periodic redeterminations of the borrowing base under our credit agreement; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations and acquisitions; federal and state initiatives relating to the regulation of hydraulic fracturing; the potential impact of federal debt reduction initiatives and tax reform legislation being considered by the U.S. Federal government that could have a negative effect on the oil and gas industry; impacts of the global recession and tight credit markets; our ability to identify and complete acquisitions and to successfully integrate acquired businesses; unforeseen underperformance of or liabilities associated with acquired properties; our ability to successfully complete potential asset dispositions and the risks related thereto; the impacts of hedging on our results of operations; failure of our properties to yield oil or gas in commercially viable quantities; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; our ability to replace our oil and natural gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry in the regions in which we operate; risks arising out of our hedging transactions; and other risks described under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2012. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.

SELECTED FINANCIAL DATA

For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, to be filed with the Securities and Exchange Commission.

       

WHITING PETROLEUM CORPORATION

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands)

 

March 31,
2013

December 31,
2012

ASSETS
 
Current assets:
Cash and cash equivalents $ 8,182 $ 44,800
Accounts receivable trade, net 331,796 318,265
Prepaid expenses and other   26,706     21,347  
Total current assets   366,684     384,412  

Property and equipment:

Oil and gas properties, successful efforts method:
Proved properties 9,405,888 8,849,515
Unproved properties 340,855 362,483
Other property and equipment   171,685     141,738  
Total property and equipment 9,918,428 9,353,736
Less accumulated depreciation, depletion and amortization   (2,788,299 )   (2,590,203 )
Total property and equipment, net 7,130,129 6,763,533

Debt issuance costs

26,828 28,748

Other long-term assets

  118,737     95,726  

TOTAL ASSETS

$ 7,642,378   $ 7,272,419  
 
       

WHITING PETROLEUM CORPORATION

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In thousands, except share and per share data)

 

March 31,
2013

December 31,
2012

LIABILITIES AND EQUITY
 
Current liabilities:
Current portion of long-term debt $ 250,000 $ -
Accounts payable trade 107,891 131,370
Accrued capital expenditures 109,312 110,663
Accrued liabilities and other 143,791 180,622
Revenues and royalties payable 140,229 149,692
Taxes payable 39,182 33,283
Derivative liabilities 18,766 21,955
Deferred income taxes 10,438 9,394
Total current liabilities 819,609 636,979
Long-term debt 1,850,000 1,800,000
Deferred income taxes 1,113,812 1,063,681
Derivative liabilities 967 1,678
Production Participation Plan liability 98,890 94,483
Asset retirement obligations 89,676 86,179
Deferred gain on sale 103,355 110,395
Other long-term liabilities 25,461 25,852
Total liabilities 4,101,770 3,819,247
Commitments and contingencies
Equity:

Preferred stock, $0.001 par value, 5,000,000 shares
  authorized; 6.25% convertible perpetual preferred stock,
  172,129 issued and outstanding as of March 31, 2013
  and 172,391 shares issued and outstanding as of
  December 31, 2012, aggregate liquidation preference of
  $17,212,900 at March 31, 2013

- -

Common stock, $0.001 par value, 300,000,000 shares
  authorized; 119,389,608 issued and 117,830,572
  outstanding as of March 31, 2013, 118,582,477 issued
  and 117,631,451 outstanding as of December 31, 2012

119 119
Additional paid-in capital 1,568,045 1,566,717
Accumulated other comprehensive loss (1,103) (1,236)
Retained earnings 1,965,382 1,879,388
Total Whiting shareholders' equity 3,532,443 3,444,988
Noncontrolling interest 8,165 8,184
Total equity 3,540,608 3,453,172

TOTAL LIABILITIES AND EQUITY

$ 7,642,378 $ 7,272,419
 
   

WHITING PETROLEUM CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In thousands, except per share data)

 

Three Months Ended
March 31,

2013     2012
REVENUES AND OTHER INCOME:
Oil, NGL and natural gas sales $ 605,114 $ 558,697
Gain (loss) on hedging activities (211 ) 1,127
Amortization of deferred gain on sale 7,976 3,753
Interest income and other   492     129  
Total revenues and other income   613,371     563,706  
COSTS AND EXPENSES:
Lease operating 99,878 94,790
Production taxes 51,271 44,611
Depreciation, depletion and amortization 201,159 156,120
Exploration and impairment 37,280 27,578
General and administrative 28,885 34,368
Interest expense 21,470 18,456
Change in Production Participation Plan liability 4,407 935
Commodity derivative loss, net   31,257     29,403  
Total costs and expenses   475,607     406,261  
INCOME BEFORE INCOME TAXES 137,764 157,445
INCOME TAX EXPENSE:
Current 422 1,426
Deferred   51,098     57,573  
Total income tax expense   51,520     58,999  
NET INCOME 86,244 98,446
Net loss attributable to noncontrolling interest   19     24  
NET INCOME AVAILABLE TO SHAREHOLDERS 86,263 98,470
Preferred stock dividends   (269 )   (269 )
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 85,994   $ 98,201  
EARNINGS PER COMMON SHARE:
Basic $ 0.73   $ 0.84  
Diluted $ 0.72   $ 0.83  
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic   117,788     117,517  
Diluted   119,263     118,896  
 
   

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income Available to Common Shareholders to

Adjusted Net Income Available to Common Shareholders

(In thousands, except for per share data)

 
Three Months Ended
March 31,
2013     2012
Net income available to common shareholders $ 85,994 $ 98,201
 
Adjustments net of tax:
Amortization of deferred gain on sale (4,993 ) (2,346 )
Gain on sale of properties (28 ) -
Impairment expense 11,528 11,151
One-time charge under Production Participation Plan related to Trust II offering - 5,928
Change in Production Participation Plan liability   2,759     585  
Unrealized derivative losses   16,380     9,095  
Adjusted net income (1) $ 111,640   $ 122,614  
 
Adjusted net income available to common shareholders per share, basic $ 0.95   $ 1.04  
Adjusted net income available to common shareholders per share, diluted $ 0.94   $ 1.03  
 
(1)   Adjusted net income available to common shareholders is a non-GAAP financial measure. Management believes it provides useful information to investors for analysis of Whiting's fundamental business on a recurring basis. In addition, management believes that adjusted net income available to common shareholders is widely used by professional research analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas exploration and production industry, and many investors use the published research of industry research analysts in making investment decisions. Adjusted net income available for common shareholders should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under U.S. GAAP and may not be comparable to other similarly titled measures of other companies.
 
   

WHITING PETROLEUM CORPORATION

Reconciliation of Net Cash Provided by Operating Activities to Discretionary Cash Flow

(In thousands)

 
Three Months Ended
March 31,
2013     2012
Net cash provided by operating activities $ 297,614 $ 352,992
Exploration 18,866 9,744
Exploratory dry hole costs - (251 )
Changes in working capital 84,859 (10,310 )
Preferred stock dividends paid   (269 )   (269 )
Discretionary cash flow (1) $ 401,070   $ 351,906  
(1)   Discretionary cash flow is computed as net income plus exploration and impairment costs, depreciation, depletion and amortization, deferred income taxes, non-cash interest costs, non-cash compensation plan charges, non-cash losses on mark-to-market derivatives and other non-current items less the gain on sale of properties, amortization of deferred gain on sale, non-cash gains on mark-to-market derivatives, and preferred stock dividends paid. The non-GAAP measure of discretionary cash flow is presented because management believes it provides useful information to investors for analysis of the Company's ability to internally fund acquisitions, exploration and development. Discretionary cash flow should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under U.S. GAAP and may not be comparable to other similarly titled measures of other companies.

Whiting Petroleum Corporation
John B. Kelso, 303-837-1661
Director of Investor Relations
john.kelso@whiting.com

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