A Snapshot of Whiting Petroleum’s 1Q18 Earnings



Whiting’s 1Q18 revenue

Whiting Petroleum (WLL) released its 1Q18 earnings results on April 30, after markets closed. The company reported revenue of $515 million, whereas analysts had forecast ~$465.6 million. WLL reported revenue of ~$371.3 million in 1Q17 and $474.4 million in 4Q17.

The higher revenue in 1Q18 was the result of higher realized crude oil prices. Average crude oil price realizations in 1Q18 were $55.40 per barrel, compared with $44.12 per barrel in 1Q17 and $50.86 per barrel in 4Q17. In 1Q18, 68% of WLL’s production comprised crude oil.

Whiting’s 1Q18 earnings

In 1Q18, Whiting reported EPS (earnings per share) of $0.16, compared with -$0.96 in 1Q17. In 4Q17, WLL reported EPS of -$8.80. The year-over-year EPS improvement in 1Q18 was supported by higher revenue, as discussed above, and lower operating expenses. WLL reported operating expenses of $416.9 million in 1Q18, $449 million in 1Q17, and $1.4 billion in 4Q17. Whiting’s 4Q17 EPS include $872 million in exploration and impairment expenses. The per-share amounts have been retrospectively adjusted to reflect the one-for-four reverse stock split Whiting finalized in November 2017.

1Q18 highlights and 2018 forecasts

As a percentage of its March 2018 production, WLL was 71% hedged for 2018 and 15% hedged for 2019 in 1Q18. WLL’s cash flow from operations was $233 million in 1Q18, $46 million higher than its capex of $187 million. In 2018, Whiting forecasts capex of $750 million, and expects annual production to rose 9% year-over-year.

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