GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Whiting Petroleum Corp. Reports Operating Results (10-Q)

October 25, 2012 | About:
10qk

10qk

18 followers
Whiting Petroleum Corp. (WLL) filed Quarterly Report for the period ended 2012-09-30.

Whiting Petroleum Corp has a market cap of $5.56 billion; its shares were traded at around $42.91 with a P/E ratio of 12.6 and P/S ratio of 2.9. 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 September 30, 2012, the diluted earnings per share calculation excludes the effect of 23,320 common shares for stock options that were out-of-the-money and 152,079 incremental common shares for restricted stock that did not meet its market-based vesting criteria as of September 30, 2012. For the three months ended September 30, 2011, the diluted earnings per share calculation excludes the effect of 27,769 common shares for stock options that were out-of-the-money and 152,229 incremental common shares for restricted stock that did not meet its market-based vesting criteria as of September 30, 2011.

For the nine months ended September 30, 2012, the diluted earnings per share calculation excludes the effect of 9,920 common shares for stock options that were out-of-the-money and 135,381 incremental common shares for restricted stock that did not meet its market-based vesting criteria as of September 30, 2012. For the nine months ended September 30, 2011, the diluted earnings per share calculation excludes the effect of 1,260 incremental common shares for stock options that were out-of-the-money and 174,814 incremental common shares for restricted stock that did not meet its market-based vesting criteria as of September 30, 2011.

Oil and Natural Gas Sales. Our oil and natural gas sales revenue increased $204.5 million to $1,572.6 million for the first nine months of 2012 compared to the same period in 2011. Sales revenue is a function of oil and gas volumes sold and average commodity prices realized. Our oil sales volumes increased 27% and our NGL sales volumes increased 34% between periods, while our natural gas sales volumes decreased 4%. The oil volume increase resulted primarily from drilling success at our Sanish field, Lewis & Clark/Pronghorn prospects and our Hidden Bench prospect. During the first nine months of 2012, oil production from our Sanish field increased 1,740 MBbl, while oil production from our Lewis & Clark/Pronghorn prospects increased 1,670 MBbl compared to the first nine months of 2011, and oil production from our Hidden Bench prospect increased 420 MBbl over the same period in 2011. These production increases were partially offset by the Trust II divestiture, which decreased oil production by 595 MBOE thus far in 2012. NGLs are generally produced concurrently with our crude oil volumes, resulting in a high correlation between fluctuations in our oil quantities sold and our NGL quantities sold. As a result, our NGL sales volume increases generally relate to the same areas as our oil volume increases, such as our Sanish field, Lewis & Clark/Pronghorn prospects and our Hidden Bench prospect. The gas volume decline between periods was primarily the result of normal field production decline across several areas, as well as the Trust II divestiture. During the first nine months of 2012, gas production at our Flat Rock field decreased 1,390 MMcf, and gas production at our Canyon field decreased 625 MMcf compared to the first nine months of 2011. The Trust II divestiture in March 2012 negatively impacted gas production by 1,195 MMcf during the nine month period ended September 30, 2012. These gas volume declines were partially offset by increases in associated gas production of 1,405 MMcf at our Lewis & Clark/Pronghorn prospects and 1,045 MMcf at our Sanish field, related to new wells drilled and completed in these areas during the past twelve months.

Partially offsetting the above production-related increases in net revenue, were decreases in the average sales prices realized for oil, NGLs and natural gas. Our average price for oil before the effects of hedging decreased 5% for the first nine months of 2012 as compared to the first nine months of 2011, while our average price for NGLs decreased 29%, and our average price for natural gas before the effects of hedging decreased 33% between periods.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.0/5 (1 vote)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide