Whiting Cites High Revenues; Buys More Williston Basin Acreage
Citing high well performance in the Williston Basin, Whiting Petroleum of Denver saw total operating revenues exceed street estimates at $526.4 million for the second quarter of 2018, with cash flow exceeding capital spending by $107.2 million.
At the same time, the company announced a $130 million bolt-on acquisition of 54,833 net acres overlapping from McKenzie County, ND into Richland County, MT, which produces an average of 1,290 BOEPD.
“It is a substantial amount of acreage an attractive price,” said CEO Brad Holly. “It provides additional drilling inventory, and it fits with our intended strategy by using free cash flow to add a high rate of return inventory while maintaining our strong balance sheet”.
With 40 wells completed in the first half of the year, Whiting plans on completing 80 more by year’s end.
Production for the second quarter reached 103,480 BOEPD, while capital spending was at $203 million.
Whiting said it has achieved strong production results, exceeding estimated ultimate recovery (EUR) over 1 million barrels of oil, while reducing costs by $400,000 per well.
At the same time, the company said drilling times have been reduced to 8.9 days on average, with one well drilled in a record time of 6.7 days.
Whiting is forecasting total capital spending at $750 million, as total production is expected to grow 9% to 128,400 BOEPD.