What is Whiting Petroleum’s Production Guidance for 2016?



Whiting Petroleum’s 2016 production and cost guidance

Whiting Petroleum (WLL) updated its 2016 production guidance range to 47.0 MMboe–47.4 MMboe (million barrels of oil equivalent) from the previous guidance range of 46.5MMboe–47.3 MMboe it had provided in 2Q16. This new range is ~21% lower at the midpoint than its 2015 production levels.

In comparison, peers Concho Resources (CXO) and Cimarex Energy (XEC) have production growth guidance of 5.0% and -2.0%, respectively, for 2016. Continental Resources (CLR) expects its production to be 2% lower in 2016 compared to 2015.

Whiting Petroleum (WLL) expects its lease operating expenses (or LOE) per barrel of oil equivalent (or boe) to range between $8.20–$8.50 in 2016. This range is 10% lower than its 2015 LOE.

Whiting Petroleum’s 3Q16 LOE was $7.98 per boe, which it claimed was below the low end of the guidance. WLL noted that this difference was due to the sale of its “higher-operating-expense” North Ward Estes assets, operating efficiency, and higher-than-expected production volumes.

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WLL’s 3Q16 production

Whiting Petroleum’s total production volume in 3Q16 was ~120 Mboepd (thousand barrels of oil equivalent per day). In comparison, its 3Q15 production volumes were 160.6 Mboepd.

WLL’s 2Q16 production volumes amounted to 134.2 Mboepd. Whiting’s total liquids (crude oil and natural gas liquids) production mix in 3Q16 was 85%, as we saw in the previous part.

Whiting Petroleum’s 3Q16 realized prices

Whiting Petroleum’s average realized price for crude oil (USO) and condensates fell from $44.17 per barrel in 3Q15 to $41.88 per barrel in 3Q16. Its average realized price for natural gas (UNG) fell from $2.83 per thousand cubic feet in 3Q15 to $1.79 per thousand cubic feet in 3Q16. Its average realized price for natural gas liquids fell from $10.55 per barrel in 3Q15 to $8.65 per barrel in 3Q16.


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