Whiting Petroleum’s Production Trends and Guidance
Whiting Petroleum’s 2Q17 operational performance
Whiting Petroleum’s (WLL) total production in 2Q17 was ~112.7 Mboepd (thousand barrels of oil equivalent per day). Its 2Q16 production volume in comparison was 134.2 Mboepd, and its 1Q17 production volume was 117.4 Mboepd.
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WLL’s 2Q17 Bakken production at 105.5 Mboepd represented 94% of its total 2Q17 production. WLL’s 2Q17 production had come in within the guidance at 112.66 Mboepd. WLL’s management noted in the 2Q17 earnings conference, “This reflects the timing of wells put on production during the quarter, with several large pads coming on in June.”
WLL’s production guidance
As we have seen previously, the company forecast 14% production growth between 1Q17 and 4Q17. The company’s updated production guidance range following its capex cut is 43.6 MMboe—44.3 MMboe. The previous guidance was 45.2 MMboe–46.2 MMboe. Production guidance for 3Q17 is 10.5 MMboe—11.1 MMboe.
WLL said that to hold its expected exit rate production of 133.5 Mboepd flat, the company will have to spend $750 million. The company also believes that it could be cash flow neutral at NYMEX prices of $50 under this regime.
For 3Q17, WLL has hedged 53.5% of its oil production. For 4Q17, it has hedged 55% of its oil production.