Whiting Petroleum Corp. Reports Operating Results (10-Q)
Whiting Petroleum Corp has a market cap of $5.09 billion; its shares were traded at around $42.23 with a P/E ratio of 10.7 and P/S ratio of 2.7. Whiting Petroleum Corp had an annual average earning growth of 12.9% over the past 10 years.
Highlight of Business Operations:For the three months ended June 30, 2012, the diluted earnings per share calculation excludes the effect of 25,984 common shares for stock options that were out-of-the-money and 138,148 incremental common shares for restricted stock that did not meet its market-based vesting criteria as of June 30, 2012.
For the six months ended June 30, 2012, the diluted earnings per share calculation excludes the effect of 10,542 common shares for stock options that were out-of-the-money and 129,203 incremental common shares for restricted stock that did not meet its market-based vesting criteria as of June 30, 2012.
Oil and Natural Gas Sales. Our oil and natural gas sales revenue increased $151.9 million to $1,051.5 million in the first half of 2012 compared to the same period in 2011. Sales are a function of oil and gas volumes sold and average commodity prices realized. Our oil sales volumes increased 31% between periods, while our natural gas sales volumes decreased 2%. The oil volume increase resulted primarily from drilling success at our Sanish and Parshall fields, Lewis & Clark/Pronghorn prospects and Hidden Bench prospect. During the first half of 2012, oil production from our Sanish and Parshall fields increased 1,370 MBbl, while oil production from our Lewis & Clark/Pronghorn prospects increased 1,255 MBbl, and oil production from our Hidden Bench prospect increased 350 MBbl over the same period in 2011. These production increases were partially offset by the Trust II divestiture, which decreased oil production by 320 MBOE thus far in 2012. The gas volume decline between periods was primarily the result of the Trust II divestiture, which decreased gas production by 615 MMcf, as well as normal field production decline across several areas. During the first half of 2012, gas production at our Flat Rock field decreased 860 MMcf, and gas production at our Canyon field decreased 440 MMcf compared to the first half of 2011. These gas volume decreases were partially offset by increased gas production of 835 MMcf at our Lewis & Clark/Pronghorn prospects and 640 MMcf at our Sanish and Parshall fields, which were associated with new wells drilled and completed in these areas during the last twelve months.
Partially offsetting the increase in oil and gas sales revenue in the first half of 2012 resulting from higher oil production volumes, were decreases in the average sales prices realized for oil and natural gas. Our average price for oil before the effects of hedging decreased 8% in the first half of 2012 as compared to the first half of 2011, and our average price for natural gas before the effects of hedging decreased 33% between periods. These price decreases were mainly due to lower average NYMEX prices in the first half of 2012 versus the first half of 2011.
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