Whiting Petroleum Reports Third Quarter Financial and Operating Results

November 9, 2020

DENVER–(BUSINESS WIRE)–Whiting Petroleum Corporation (NYSE: WLL) (“Whiting” or the “Company”) today announced third quarter 2020 results.

hird Quarter 2020 Highlights

  • Revenue was $184 million for the quarter ending September 30, 2020
  • Net income was $278 million, or $7.30 per diluted share for the quarter ending September 30, 2020
  • Adjusted EBITDAX was $100 million for the quarter ending September 30, 2020 (see further discussion regarding the presentation of adjusted EBITDAX in “About Non-GAAP Financial Measures” below)
  • Emerged from bankruptcy with a strong balance sheet and liquidity positionOn September 1, 2020 (the “Emergence Date”) the Company emerged from voluntary bankruptcy under Chapter 11 of the Bankruptcy Code. Beginning on the Emergence Date, the Company applied fresh start accounting, which resulted in a new basis of accounting, and became a new entity for financial reporting purposes. As a result of the application of fresh start accounting and the effects of the implementation of the Company’s chapter 11 plan of reorganization, the consolidated financial statements after September 1, 2020 are not comparable with the consolidated financial statements on or prior to that date. References to “Successor” refer to the Whiting entity after emergence from bankruptcy on the Emergence Date. References to “Predecessor” refer to the Whiting entity prior to emergence from bankruptcy. References to “Successor Period” refer to the period from September 1, 2020 through September 30, 2020. References to “Current Predecessor Quarter” and “Current Predecessor YTD Period” refer to the periods from July 1, 2020 through August 31, 2020 and January 1, 2020 through August 31, 2020, respectively. References to “Prior Predecessor Quarter” and “Prior Predecessor YTD Period” refer to the three and nine months ended September 30, 2019, respectively.Although GAAP requires that we report on results for the Successor Period and the Current Predecessor Quarter and Current Predecessor YTD Period separately, our operating results are discussed below for the three and nine months ended September 30, 2020 by combining the results of the applicable Predecessor and Successor periods in order to provide the most meaningful comparison of our current results to prior periods. Accordingly, references to “Combined Current Quarter” and “Combined Current YTD Period” refer to the three and nine months ended September 30, 2020, respectively.Revenue for the Combined Current Quarter decreased $192 million to $184 million when comparing to the quarter ending September 30, 2019. A decrease in total production accounted for approximately $111 million of the change in revenue and decreases in commodity prices realized accounted for approximately $81 million of the change in revenue between periods.

    Net income for the Combined Current Quarter was $278 million, or $7.30 per share, as compared to a net loss of $19 million, or $0.21 per share, in the quarter ended September 30, 2019. Adjusted net loss for the Combined Current Quarter was $13 million or $0.34 per share.

    Adjusted EBITDAX for the Combined Current Quarter was $100 million compared to $236 million for the quarter ended September 30, 2019.

    Non-GAAP

    Predecessor

    Combined Three
    Months Ended
    September 30, 2020

    Three Months
    Ended
    September 30, 2019

    Selected operating statistics:

    Production

    Oil (MBbl)

    5,209

    7,441

    NGLs (MBbl)

    1,641

    1,830

    Natural gas (MMcf)

    10,737

    12,536

    Total production (MBOE)

    8,639

    11,361

    Average prices

    Oil (per Bbl):

    Price received

    $

    34.05

    $

    49.71

    Effect of crude oil hedging (1)

    0.01

    1.41

    Realized price (3)

    $

    34.06

    $

    51.12

    Weighted average NYMEX price (per Bbl) (4)

    $

    40.92

    $

    56.43

    NGLs (per Bbl):

    Realized price

    $

    6.48

    $

    3.07

    Natural gas (per Mcf):

    Price received

    $

    (0.41

    )

    $

    0.03

    Effect of natural gas hedging (2)

    0.03

    –

    Realized price

    $

    (0.38

    )

    $

    0.03

    Weighted average NYMEX price (per MMBtu) (4)

    $

    1.90

    $

    2.29

    Selected operating metrics

    Sales price, net of hedging ($ per BOE)

    $

    21.29

    $

    34.01

    Lease operating ($ per BOE)

    5.92

    7.51

    Transportation, gathering, compression and other ($ per BOE)

    0.72

    0.98

    Depreciation, depletion and amortization ($ per BOE)

    10.57

    18.58

    General and administrative ($ per BOE)

    3.11

    2.63

    Production and ad valorem taxes (% of sales revenue)

    9

    %

    9

    %
    _________________________________

    (1)

    		 Whiting received $0.04 million and $10 million in pre-tax cash settlements on crude oil hedges during the three months ended September 30, 2020 and 2019, respectively. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release.

    (2)

    		 Whiting received $0.3 million in pre-tax cash settlements on natural gas hedges during the three months ended September 30, 2020. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” later in this release.

    (3)

    		 Whiting’s realized prices were reduced by $2.38 per Bbl during the three months ended September 30, 2019 due deficiency payments under a contract in our Redtail field. This contract ended in April 2020.

    (4)

    		 Average NYMEX prices weighted for monthly production volumes.

    Liquidity

    Since emergence, the Company paid down approximately $25 million on its revolver. As of September 30, 2020, the Company had $400 million outstanding on its revolver and $14 million in cash resulting in total liquidity of $364 million. Whiting expects to fund its operations fully within operating cash flow through at least 2021.

    Commodity Price Hedging

    Whiting uses commodity hedges in order to reduce the effects of commodity price volatility and to adhere to the requirements of its credit facility. As of October 30, 2020, the Company has approximately 1.9 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2020, approximately 8.8 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2021 and approximately 3.5 million Bbls of oil hedged at a weighted-average floor price of approximately $38 per Bbl in 2022. Additionally, the Company has approximately 2.2 billion British thermal units (“Bbtu”) of natural gas hedged at a weighted-average floor price of $2.36 per million British thermal units (“MMbtu”) in 2020, approximately 23.5 Bbtu of natural gas hedged at a weighted-average floor price of $2.65 per MMbtu in 2021 and approximately 12.1 Bbtu of natural gas hedged at a weighted-average floor price of $2.38 per MMbtu in 2022. These floor prices are the weighted-average of swaps and the floors of collared transactions.

    G & A

    G&A expenses decreased to $27 million in the Combined Current Quarter, which includes $15 million of specific costs related to restructuring. This compares to $28 million in the second quarter 2020 and $30 million in the third quarter 2019, which included $11 million and $8 million of non-recurring items, respectively.

    Operations

    During the second quarter, the Company filed for bankruptcy, at which time all operations were suspended, except for workover operations. This suspension of operations clearly resulted in a steep decline in production over the past two quarters. During the third quarter of 2020, total production averaged 93.9 thousand barrels of oil equivalent per day (“MBOE/d”), of which 60% was crude oil, a decrease of 5% from the second quarter of 2020. Production for the same period of 2019 was 123 MBOE/d.

    During the third quarter the Company turned seven wells to production in the Williston Basin. In the fourth quarter of 2020, Whiting expects to turn five additional wells to production as well as commence completion operations on another five wells at year end that will impact 2021 production. The Company expects capital expenditures of $27 million during the fourth quarter, bringing full year capital expenditures to the midpoint of guidance. Due to the timing of wells put on production during the third and fourth quarters, combined with completion work being done near the end of the year, we anticipate fourth quarter production will decline from the third quarter.

    LOE declined to $51 million in the Combined Current Quarter from $53 million in the second quarter of 2020. This 4% decrease is primarily due to the company’s focus on saltwater disposal optimization, lower non-op spending and improved rental agreements. This also marked a 40% decrease from the same period in 2019. Whiting continues to focus on costs to improve margins during the current price environment.

    Whiting has consistently outperformed the NDIC requirement for gas capture since the regulatory requirement began. In September, Whiting captured 96% of its gas and continues to explore new technologies to reduce overall emissions.

    Outlook for Full-Year 2020

    The following table provides guidance for the full-year 2020 based on current forecasts.

    Full-Year Guidance

    2020

    Production (MBOE/d)

    98 – 99

    Percent Oil

    60%

    Capital Expenditures (MM)

    $ 213 – $ 218

    Lease operating expense (MM)

    $ 238 – $ 242

    Management Comment

    Lynn A. Peterson, President and CEO of WLL commented, “The past quarter saw the Company complete its restructuring work and emerge from bankruptcy in September. The Whiting team remained extremely focused during the process and I commend all of our staff for their efforts.”

    Peterson added, “We are in a challenging and volatile commodity price environment and we will continue to prioritize cash flow generation. As we look ahead at consensus commodity prices in 2021, our goals will be 1) to maintain production levels near our 2020 exit rate, and 2) operate within internally generated cash flow, which in combination should produce an attractive free cash flow yield. We anticipate holding 2021 spending levels in the same range as our 2020 capital expenditures to achieve these goals. We believe this strategy will create value for the Company’s stakeholders while always operating in a safe environment.”

    Conference Call

    WLL will host a conference call on Friday, November 6, 2020 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time) to discuss the results. The call will be conducted by President and CEO Lynn A. Peterson, CFO James Henderson, COO Charles J. Rimer and IR Manager Brandon Day. A Q&A session will immediately follow the discussion of the results for the quarter.

    To participate in this call please dial:
    Domestic Dial-in Number: (877) 328-5506
    International Dial-in Number: (412) 317-5422
    Webcast URL: https://dpregister.com/sreg/10149456/dc153f7610

    Replay Information:
    Conference ID #: 10149456
    Replay Dial-In (Toll Free US & Canada): (877) 344-7529 (U.S.), (855) 669-9658 (Canada)
    Replay Dial-In (International): (412) 317-0088
    Expiration Date: Friday, November 13, 2020

    Selected Operating and Financial Statistics

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September
    30, 2020

    Eight Months
    Ended August
    31, 2020

    Combined
    Nine Months
    Ended
    September 30,
    2020

    Nine Months
    Ended
    September 30,
    2019

    Selected operating statistics:

    Production

    Oil (MBbl)

    1,746

    15,273

    17,020

    22,435

    NGLs (MBbl)

    559

    4,522

    5,081

    5,709

    Natural gas (MMcf)

    3,631

    29,667

    33,299

    38,167

    Total production (MBOE)

    2,910

    24,740

    27,650

    34,506

    Average prices

    Oil (per Bbl):

    Price received

    $

    34.58

    $

    28.86

    $

    29.45

    $

    50.51

    Effect of crude oil hedging (1)

    0.28

    3.00

    2.72

    0.66

    Realized price (3)

    $

    34.86

    $

    31.86

    $

    32.17

    $

    51.17

    Weighted average NYMEX price (per Bbl) (4)

    $

    39.63

    $

    38.23

    $

    38.37

    $

    56.99

    NGLs (per Bbl):

    Realized price

    $

    3.19

    $

    4.45

    $

    4.31

    $

    6.09

    Natural gas (per Mcf):

    Price received

    $

    (0.30

    )

    $

    (0.06

    )

    $

    (0.09

    )

    $

    0.62

    Effect of natural gas hedging (2)

    0.15

    (0.01

    )

    0.01

    –

    Realized price

    $

    (0.15

    )

    $

    (0.07

    )

    $

    (0.08

    )

    $

    0.62

    Weighted average NYMEX price (per MMBtu) (4)

    $

    2.24

    $

    1.76

    $

    1.81

    $

    2.62

    Selected operating metrics

    Sales price, net of hedging ($ per BOE)

    $

    21.34

    $

    20.39

    $

    20.49

    $

    34.96

    Lease operating ($ per BOE)

    6.37

    6.40

    6.39

    7.43

    Transportation, gathering, compression and other ($ per BOE)

    0.68

    0.90

    0.88

    0.93

    Depreciation, depletion and amortization ($ per BOE)

    6.91

    13.69

    12.98

    17.74

    General and administrative ($ per BOE)

    3.55

    3.71

    3.69

    2.82

    Production and ad valorem taxes (% of sales revenue)

    10

    %

    9

    %

    9

    %

    9

    %
    _________________________________

    (1)

    		 Whiting received $46 million and $15 million in pre-tax cash settlements on crude oil hedges during the nine months ended September 30, 2020 and 2019, respectively. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” earlier in this release.

    (2)

    		 Whiting received $0.3 million in pre-tax cash settlements on natural gas hedges during the nine months ended September 30, 2020. A summary of Whiting’s outstanding hedges is included in “Commodity Price Hedging” earlier in this release.

    (3)

    		 Whiting’s realized prices were reduced by $1.42 and $2.05 per Bbl during the nine months ended September 30, 2020 and 2019, respectively, due to the Redtail deficiency payments. This contract ended in April 2020.

    (4)

    		 Average NYMEX prices weighted for monthly production volumes.

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month
    Ended
    September
    30, 2020

    Two Months
    Ended August
    31, 2020

    Combined
    Three Months
    Ended
    September 30,
    2020

    Three Months
    Ended
    September 30,
    2019

    Selected financial data:

    (In thousands, except per share data)

    Total operating revenues

    $

    61,084

    $

    122,558

    $

    183,642

    $

    375,891

    Total operating expenses

    30,877

    188,471

    219,348

    351,253

    Total other (income) expense, net

    2,122

    (247,992

    )

    (245,870

    )

    43,705

    Net income (loss)

    40,270

    237,425

    277,695

    (19,067

    )

    Per basic share (1)

    1.06

    2.60

    7.30

    (0.21

    )

    Per diluted share (1)

    1.06

    2.60

    7.30

    (0.21

    )

    Adjusted net income (loss) (2)

    8,250

    (21,130

    )

    (12,880

    )

    (35,148

    )

    Per basic share (1)

    0.22

    (0.23

    )

    (0.34

    )

    (0.38

    )

    Per diluted share (1)

    0.22

    (0.23

    )

    (0.34

    )

    (0.38

    )

    Adjusted EBITDAX (2)

    34,689

    64,838

    99,527

    235,663

    _________________________________

    (1)

    		 For the combined three months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

    (2)

    		 Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release.

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month
    Ended
    September
    30, 2020

    Eight Months
    Ended August
    31, 2020

    Combined
    Nine Months
    Ended
    September 30,
    2020

    Nine Months
    Ended
    September 30,
    2019

    Selected financial data:

    (In thousands, except per share data)

    Total operating revenues

    $

    61,084

    $

    459,004

    $

    520,088

    $

    1,191,644

    Total operating expenses

    30,877

    4,651,298

    4,682,175

    1,147,122

    Total other (income) expense, net

    2,122

    (170,459

    )

    (168,337

    )

    139,574

    Net income (loss)

    40,270

    (3,965,461

    )

    (3,925,191

    )

    (93,679

    )

    Per basic share (1)

    1.06

    (43.37

    )

    (103.16

    )

    (1.03

    )

    Per diluted share (1)

    1.06

    (43.37

    )

    (103.16

    )

    (1.03

    )

    Adjusted net income (loss) (2)

    8,250

    (209,656

    )

    (201,406

    )

    (57,821

    )

    Per basic share (1)

    0.22

    (2.29

    )

    (5.29

    )

    (0.63

    )

    Per diluted share (1)

    0.22

    (2.29

    )

    (5.29

    )

    (0.63

    )

    Adjusted EBITDAX (2)

    34,689

    227,580

    262,269

    738,176

    _________________________________

    (1)

    		 For the combined nine months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

    (2)

    		 Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release.

    Third Quarter and First Nine Month 2020 Costs and Margins

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

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September
    30, 2020

    Two Months
    Ended
    August 31,
    2020

    Combined
    Three Months Ended
    September 30,
    2020

    Three Months
    Ended
    September 30,
    2019

    Sales price, net of hedging

    $

    20.99

    $

    21.39

    $

    21.26

    $

    34.01

    Gain (loss) on hedging activities

    0.35

    (0.13

    )

    0.03

    –

    Lease operating expense

    6.37

    5.70

    5.92

    7.51

    Transportation, gathering, compression and other

    0.68

    0.74

    0.72

    0.98

    Production and ad valorem tax

    2.03

    1.81

    1.88

    3.10

    Cash general & administrative

    3.55

    2.74

    3.02

    2.94

    Exploration

    1.45

    0.47

    0.80

    0.73

    Cash interest expense

    0.60

    1.33

    1.09

    3.56

    Cash income tax expense

    0.80

    –

    0.27

    –

    Cash reorganization items

    –

    5.32

    3.53

    –

    $

    5.86

    $

    3.15

    $

    4.06

    $

    15.19

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September
    30, 2020

    Eight Months
    Ended
    August 31,
    2020

    Combined
    Nine Months
    Ended September 30,
    2020

    Nine Months
    Ended
    September 30,
    2019

    Sales price, net of hedging

    $

    20.99

    $

    18.55

    $

    18.81

    $

    34.96

    Gain (loss) on hedging activities

    0.35

    1.84

    1.68

    –

    Lease operating expense

    6.37

    6.40

    6.39

    7.43

    Transportation, gathering, compression and other

    0.68

    0.90

    0.88

    0.93

    Production and ad valorem tax

    2.03

    1.67

    1.70

    2.98

    Cash general & administrative

    3.55

    3.56

    3.56

    2.68

    Exploration

    1.45

    0.93

    0.98

    0.82

    Cash interest expense

    0.60

    2.41

    2.22

    3.52

    Cash income tax expense

    0.80

    0.11

    0.18

    –

    Cash reorganization items

    –

    2.31

    2.07

    –

    $

    5.86

    $

    2.10

    $

    2.51

    $

    16.60

    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 September 30, 2020 to be filed with the Securities and Exchange Commission.

    WHITING PETROLEUM CORPORATION

    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

    (in thousands)

    Successor

    Predecessor

    September 30,

    December 31,

    2020

    2019

    ASSETS

    Current assets:

    Cash and cash equivalents

    $

    13,702

    $

    8,652

    Restricted cash

    13,233

    –

    Accounts receivable trade, net

    128,577

    308,249

    Prepaid expenses and other

    22,056

    14,082

    Total current assets

    177,568

    330,983

    Property and equipment:

    Oil and gas properties, successful efforts method

    1,829,472

    12,812,007

    Other property and equipment

    72,856

    178,689

    Total property and equipment

    1,902,328

    12,990,696

    Less accumulated depreciation, depletion and amortization

    (19,447

    )

    (5,735,239

    )

    Total property and equipment, net

    1,882,881

    7,255,457

    Other long-term assets

    38,007

    50,281

    TOTAL ASSETS

    $

    2,098,456

    $

    7,636,721

    WHITING PETROLEUM CORPORATION

    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

    (in thousands)

    Successor

    Predecessor

    September 30,

    December 31,

    2020

    2019

    LIABILITIES AND EQUITY

    Current liabilities:

    Accounts payable trade

    $

    44,171

    $

    80,100

    Revenues and royalties payable

    146,767

    202,010

    Accrued capital expenditures

    14,809

    64,263

    Accrued liabilities and other

    63,987

    85,007

    Accrued lease operating expenses

    23,757

    38,262

    Accrued interest

    1,432

    53,928

    Taxes payable

    16,985

    26,844

    Total current liabilities

    311,908

    550,414

    Long-term debt

    400,328

    2,799,885

    Asset retirement obligations

    119,262

    131,208

    Operating lease obligations

    17,749

    31,722

    Deferred income taxes

    –

    73,593

    Other long-term liabilities

    19,723

    24,928

    Total liabilities

    868,970

    3,611,750

    Commitments and contingencies

    Equity:

    Predecessor common stock, $0.001 par value, 225,000,000 shares authorized; 91,743,571 issued and 91,326,469 outstanding as of December 31, 2019

    –

    92

    Successor common stock, $0.001 par value, 500,000,000 shares authorized; 38,051,210 issued and outstanding as of September 30, 2020

    38

    –

    Additional paid-in capital

    1,189,178

    6,409,991

    Accumulated earnings (deficit)

    40,270

    (2,385,112

    )

    Total equity

    1,229,486

    4,024,971

    TOTAL LIABILITIES AND EQUITY

    $

    2,098,456

    $

    7,636,721

    WHITING PETROLEUM CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

    (in thousands, except per share data)

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month
    Ended
    September 30,
    2020

    Two Months
    Ended
    August 31,
    2020

    Combined
    Three Months
    Ended
    September 30,
    2020

    Three Months
    Ended
    September 30,
    2019

    OPERATING REVENUES

    Oil, NGL and natural gas sales

    $

    61,084

    $

    122,558

    $

    183,642

    $

    375,891

    OPERATING EXPENSES

    Lease operating expenses

    18,526

    32,646

    51,172

    85,320

    Transportation, gathering, compression and other

    1,980

    4,259

    6,239

    11,176

    Production and ad valorem taxes

    5,908

    10,362

    16,270

    35,220

    Depreciation, depletion and amortization

    20,110

    71,240

    91,350

    211,025

    Exploration and impairment

    4,207

    10,217

    14,424

    10,890

    General and administrative

    10,345

    16,513

    26,858

    29,890

    Derivative (gain) loss, net

    (30,594

    )

    43,125

    12,531

    (30,597

    )

    Loss on sale of properties

    395

    1,280

    1,675

    595

    Amortization of deferred gain on sale

    –

    (1,171

    )

    (1,171

    )

    (2,266

    )

    Total operating expenses

    30,877

    188,471

    219,348

    351,253

    INCOME FROM OPERATIONS

    30,207

    (65,913

    )

    (35,706

    )

    24,638

    OTHER INCOME (EXPENSE)

    Interest expense

    (2,128

    )

    (11,379

    )

    (13,507

    )

    (48,447

    )

    Gain (loss) on extinguishment of debt

    –

    –

    –

    4,598

    Interest income and other

    6

    139

    145

    144

    Reorganization items

    –

    259,232

    259,232

    –

    Total other income (expense)

    (2,122

    )

    247,992

    245,870

    (43,705

    )

    INCOME (LOSS) BEFORE INCOME TAXES

    28,085

    182,079

    210,164

    (19,067

    )

    INCOME TAX EXPENSE (BENEFIT)

    Current

    2,316

    –

    2,316

    –

    Deferred

    (14,501

    )

    (55,346

    )

    (69,847

    )

    –

    Total income tax benefit

    (12,185

    )

    (55,346

    )

    (67,531

    )

    –

    NET INCOME (LOSS)

    $

    40,270

    $

    237,425

    $

    277,695

    $

    (19,067

    )

    INCOME (LOSS) PER COMMON SHARE

    Basic

    $

    1.06

    $

    2.60

    $

    7.30

    $

    (0.21

    )

    Diluted

    $

    1.06

    $

    2.60

    $

    7.30

    $

    (0.21

    )

    WEIGHTED AVERAGE SHARES OUTSTANDING

    Basic

    38,051

    91,464

    38,051

    91,299

    Diluted

    38,051

    91,464

    38,051

    91,299

    WHITING PETROLEUM CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

    (in thousands, except per share data)

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month
    Ended
    September 30,
    2020

    Eight Months
    Ended
    August 31,
    2020

    Combined
    Nine Months
    Ended
    September 30,
    2020

    Nine Months
    Ended
    September 30,
    2019

    OPERATING REVENUES

    Oil, NGL and natural gas sales

    $

    61,084

    $

    459,004

    $

    520,088

    $

    1,191,644

    OPERATING EXPENSES

    Lease operating expenses

    18,526

    158,228

    176,754

    256,384

    Transportation, gathering, compression and other

    1,980

    22,266

    24,246

    32,145

    Production and ad valorem taxes

    5,908

    41,204

    47,112

    102,796

    Depreciation, depletion and amortization

    20,110

    338,757

    358,867

    612,166

    Exploration and impairment

    4,207

    4,184,830

    4,189,037

    44,045

    General and administrative

    10,345

    91,816

    102,161

    97,437

    Derivative (gain) loss, net

    (30,594

    )

    (181,614

    )

    (212,208

    )

    7,431

    Loss on sale of properties

    395

    927

    1,322

    1,681

    Amortization of deferred gain on sale

    –

    (5,116

    )

    (5,116

    )

    (6,963

    )

    Total operating expenses

    30,877

    4,651,298

    4,682,175

    1,147,122

    INCOME FROM OPERATIONS

    30,207

    (4,192,294

    )

    (4,162,087

    )

    44,522

    OTHER INCOME (EXPENSE)

    Interest expense

    (2,128

    )

    (73,054

    )

    (75,182

    )

    (145,274

    )

    Gain (loss) on extinguishment of debt

    –

    25,883

    25,883

    4,598

    Interest income and other

    6

    211

    217

    1,102

    Reorganization items

    –

    217,419

    217,419

    –

    Total other income (expense)

    (2,122

    )

    170,459

    168,337

    (139,574

    )

    INCOME (LOSS) BEFORE INCOME TAXES

    28,085

    (4,021,835

    )

    (3,993,750

    )

    (95,052

    )

    INCOME TAX EXPENSE (BENEFIT)

    Current

    2,316

    2,718

    5,034

    –

    Deferred

    (14,501

    )

    (59,092

    )

    (73,593

    )

    (1,373

    )

    Total income tax benefit

    (12,185

    )

    (56,374

    )

    (68,559

    )

    (1,373

    )

    NET INCOME (LOSS)

    $

    40,270

    $

    (3,965,461

    )

    $

    (3,925,191

    )

    $

    (93,679

    )

    INCOME (LOSS) PER COMMON SHARE

    Basic

    $

    1.06

    $

    (43.37

    )

    $

    (103.16

    )

    $

    (1.03

    )

    Diluted

    $

    1.06

    $

    (43.37

    )

    $

    (103.16

    )

    $

    (1.03

    )

    WEIGHTED AVERAGE SHARES OUTSTANDING

    Basic

    38,051

    91,423

    38,051

    91,274

    Diluted

    38,051

    91,423

    38,051

    91,274

    WHITING PETROLEUM CORPORATION

    Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

    (in thousands, except per share data)

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September 30,
    2020

    Two Months
    Ended
    August 31,
    2020

    Combined
    Three Months
    Ended
    September 30,
    2020

    Three Months
    Ended
    September 30,
    2019

    Net income (loss)

    $

    40,270

    $

    237,425

    $

    277,695

    $

    (19,067

    )

    Adjustments:

    Amortization of deferred gain on sale

    –

    (1,171

    )

    (1,171

    )

    (2,266

    )

    Loss on sale of properties

    395

    1,280

    1,675

    595

    Impairment expense

    –

    7,516

    7,516

    2,550

    (Gain) loss on extinguishment of debt

    –

    –

    –

    (4,598

    )

    Total measure of derivative (gain) loss reported under U.S. GAAP

    (30,594

    )

    43,125

    12,531

    (30,597

    )

    Total net cash settlements received (paid) on commodity derivatives during the period

    1,031

    (731

    )

    300

    10,454

    Reorganization items, net

    –

    (259,232

    )

    (259,232

    )

    –

    Restructuring and other one-time costs (1)

    9,333

    6,004

    15,337

    7,781

    Tax impact of basis difference for Whiting Canadian Holding Company ULC

    (12,185

    )

    (55,346

    )

    (67,531

    )

    –

    Adjusted net income (loss) (2)

    $

    8,250

    $

    (21,130

    )

    $

    (12,880

    )

    $

    (35,148

    )

    Adjusted net income (loss) per share, basic (3)

    $

    0.22

    $

    (0.23

    )

    $

    (0.34

    )

    $

    (0.38

    )

    Adjusted net income (loss) per share, diluted (3)

    $

    0.22

    $

    (0.23

    )

    $

    (0.34

    )

    $

    (0.38

    )
    _________________________________

    (1)

    		 Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020 and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy.

    (2)

    		 Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. 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 (loss) 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 (loss) and adjusted net income (loss) per share 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.

    (3)

    		 For the combined three months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

    WHITING PETROLEUM CORPORATION

    Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

    (in thousands, except per share data)

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September 30,
    2020

    Eight Months
    Ended
    August 31,
    2020

    Combined
    Nine Months
    Ended
    September 30,
    2020

    Nine Months
    Ended
    September 30,
    2019

    Net income (loss)

    $

    40,270

    $

    (3,965,461

    )

    $

    (3,925,191

    )

    $

    (93,679

    )

    Adjustments:

    Amortization of deferred gain on sale

    –

    (5,116

    )

    (5,116

    )

    (6,963

    )

    Loss on sale of properties

    395

    927

    1,322

    1,681

    Impairment expense

    –

    4,161,885

    4,161,885

    15,729

    (Gain) loss on extinguishment of debt

    –

    (25,883

    )

    (25,883

    )

    (4,598

    )

    Total measure of derivative (gain) loss reported under U.S. GAAP

    (30,594

    )

    (181,614

    )

    (212,208

    )

    7,431

    Total net cash settlements received (paid) on commodity derivatives during the period

    1,031

    45,483

    46,514

    14,797

    Reorganization items, net

    –

    (217,419

    )

    (217,419

    )

    –

    Restructuring and other one-time costs (1)

    9,333

    32,888

    42,221

    7,781

    Tax impact of basis difference for Whiting Canadian Holding Company ULC

    (12,185

    )

    (55,346

    )

    (67,531

    )

    –

    Adjusted net income (loss) (2)

    $

    8,250

    $

    (209,656

    )

    $

    (201,406

    )

    $

    (57,821

    )

    Adjusted net income (loss) per share, basic (3)

    $

    0.22

    $

    (2.29

    )

    $

    (5.29

    )

    $

    (0.63

    )

    Adjusted net income (loss) per share, diluted (3)

    $

    0.22

    $

    (2.29

    )

    $

    (5.29

    )

    $

    (0.63

    )
    _________________________________

    (1)

    		 Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement.

    (2)

    		 Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. 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 (loss) 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 (loss) and adjusted net income (loss) per share 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.

    (3)

    		 For the combined nine months ended September 30, 2020, the Company used the Successor’s basic and diluted weighted average share count to calculate per share amounts.

    WHITING PETROLEUM CORPORATION

    Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

    (in thousands)

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September 30,
    2020

    Two Months
    Ended
    August 31,
    2020

    Combined
    Three Months
    Ended
    September 30,
    2020

    Three Months
    Ended
    September 30,
    2019

    Net income (loss)

    $

    40,270

    $

    237,425

    $

    277,695

    $

    (19,067

    )

    Interest expense

    2,128

    11,379

    13,507

    48,447

    Interest income

    (6

    )

    (139

    )

    (145

    )

    –

    Income tax expense (benefit)

    (12,185

    )

    (55,346

    )

    (67,531

    )

    –

    Depreciation, depletion and amortization

    20,110

    71,240

    91,350

    211,025

    Amortization of deferred gain on sale

    –

    (1,171

    )

    (1,171

    )

    (2,266

    )

    Total measure of derivative (gain) loss reported under U.S. GAAP

    (30,594

    )

    43,125

    12,531

    (30,597

    )

    Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs

    1,031

    (731

    )

    300

    10,454

    Non-cash stock-based compensation

    –

    787

    787

    (3,531

    )

    (Gain) loss on extinguishment of debt

    –

    –

    –

    (4,598

    )

    Loss on sale of properties

    395

    1,280

    1,675

    595

    Reorganization items, net

    –

    (259,232

    )

    (259,232

    )

    –

    Restructuring and other one-time costs (1)

    9,333

    6,004

    15,337

    14,311

    Adjusted EBITDA (2)

    30,482

    54,621

    85,103

    224,773

    Exploration and impairment expense

    4,207

    10,217

    14,424

    10,890

    Adjusted EBITDAX (2)

    $

    34,689

    $

    64,838

    $

    99,527

    $

    235,663

    _________________________________

    (1)

    		 Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020 and directors and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in “non-cash stock-based compensation.”

    (2)

    		 Adjusted EBITDA and Adjusted EBITDAX are non-GAAP measures. Such measures are presented because management believes they provide useful information to investors for analysis of the Company’s ability to internally fund debt service, working capital requirements, acquisitions and exploration and development. Adjusted EBITDA and Adjusted EBITDAX 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 Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

    (in thousands)

    Successor

    Predecessor

    Non-GAAP

    Predecessor

    Month Ended
    September 30,
    2020

    Eight Months
    Ended
    August 31,
    2020

    Combined
    Nine Months
    Ended
    September 30,
    2020

    Nine Months
    Ended
    September 30,
    2019

    Net income (loss)

    $

    40,270

    $

    (3,965,461

    )

    $

    (3,925,191

    )

    $

    (93,679

    )

    Interest expense

    2,128

    73,054

    75,182

    145,274

    Interest income

    (6

    )

    (211

    )

    (217

    )

    (2

    )

    Income tax expense (benefit)

    (12,185

    )

    (56,374

    )

    (68,559

    )

    (1,373

    )

    Depreciation, depletion and amortization

    20,110

    338,757

    358,867

    612,166

    Amortization of deferred gain on sale

    –

    (5,116

    )

    (5,116

    )

    (6,963

    )

    Total measure of derivative (gain) loss reported under U.S. GAAP

    (30,594

    )

    (181,614

    )

    (212,208

    )

    7,431

    Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs

    1,031

    45,483

    46,514

    14,797

    Non-cash stock-based compensation

    –

    3,719

    3,719

    5,086

    (Gain) loss on extinguishment of debt

    –

    (25,883

    )

    (25,883

    )

    (4,598

    )

    Loss on sale of properties

    395

    927

    1,322

    1,681

    Reorganization items, net

    –

    (217,419

    )

    (217,419

    )

    –

    Restructuring and other one-time costs (1)

    9,333

    32,888

    42,221

    14,311

    Adjusted EBITDA (2)

    30,482

    (3,957,250

    )

    (3,926,768

    )

    694,131

    Exploration and impairment expense

    4,207

    4,184,830

    4,189,037

    44,045

    Adjusted EBITDAX (2)

    $

    34,689

    $

    227,580

    $

    262,269

    $

    738,176

    _________________________________

    (1)

    		 Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in “non-cash stock-based compensation.”

    (2)

    		 Adjusted EBITDA and Adjusted EBITDAX are non-GAAP measures. Such measures are presented because management believes they provide useful information to investors for analysis of the Company’s ability to internally fund debt service, working capital requirements, acquisitions and exploration and development. Adjusted EBITDA and Adjusted EBITDAX 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.

    About Whiting Petroleum Corporation

    Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company engaged in the development, production and acquisition of crude oil, NGLs and natural gas primarily in the Rocky Mountains region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Montana and the Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.