1700 Broadway, Suite 2300

Denver, CO 80290-2300

Phone: 303.837.1661

FAX: 303.861.4023

Company Contact: Eric K. Hagen

July 31, 2018

Title: Vice President, Investor Relations

For immediate release

Phone: 303-837-1661

Email: Eric.Hagen@whiting.com

·

Q2 2018 Average Production of 126,180 BOE/d at High End of Guidance

·

Q2 2018 Net Cash Provided by Operating Activities of $310 Million Exceeded Capital Expenditures by $107 Million

·

Q2 2018 Diluted Earnings per Share of $0.02 and Adjusted Earnings per Share of $0.62

·

Lease Operating Expense per BOE below Low End of Guidance

·

Bolt-On Acquisition Adds 55,000 Net Acres and 1,300 BOE/d for $130 Million







Three Months Ended



June 30,



2018

2017

Production (MBOE/d) (1)

Net cash provided by operating activities-MM

$

$

Discretionary cash flow-MM (2)

$

$

Realized price ($/BOE)

$

$

Total operating revenues-MM

$

$

Net income (loss) attributable to common shareholders-MM (3)

$

$

Per basic share (4)

$

$

Per diluted share (4)

$

$



Adjusted net income (loss) attributable to common shareholders-MM (5)

$

$

Per basic share (4)

$

$

Per diluted share (4)

$

$



(1)

Second quarter 2017 includes 7,855 BOE/d from properties that have since been divested.

(2)

A reconciliation of net cash provided by operating activities to discretionary cash flow is included later in this news release.

(3)

Net income (loss) attributable to common shareholders includes $50 million of pre-tax, non-cash derivative losses and $16 million of pre-tax, non-cash derivative gains for the three months ended June  30, 2018 and 2017, respectively.

(4)

All per share amounts have been retroactively adjusted for the 2017 period to reflect the Company’s one-for-four reverse stock split in November 2017.

(5)

A reconciliation of net income (loss) attributable to common shareholders to adjusted net income (loss) attributable to common shareholders is included later in this news release.







Six Months Ended



June 30,



2018

2017

Production (MBOE/d) (1)

Net cash provided by operating activities-MM

$

$

Discretionary cash flow-MM (2)

$

$

Realized price ($/BOE)

$

$

Total operating revenues-MM

$

$

Net income (loss) attributable to common shareholders-MM (3)

$

$

Per basic share (4)

$

$

Per diluted share (4)

$

$



Adjusted net income (loss) attributable to common shareholders-MM (5)

$

$

Per basic share (4)

$

$

Per diluted share (4)

$

$



(1)

The six months ended June 30, 2017 includes 8,035 BOE/d from properties that have since been divested.

(2)

A reconciliation of net cash provided by operating activities to discretionary cash flow is included later in this news release.

(3)

Net income (loss) attributable to common shareholders includes $78 million and $22 million of pre-tax, non-cash derivative losses for the six months ended June  30, 2018 and 2017, respectively.

(4)

All per share amounts have been retroactively adjusted for the 2017 period to reflect the Company’s one-for-four reverse stock split in November 2017.

(5)

A reconciliation of net income (loss) attributable to common shareholders to adjusted net income (loss) attributable to common shareholders is included later in this news release.







Three Months Ended



June 30,



2018

2017

Change

Production

Oil (MMBbl)

12%

NGLs (MMBbl)

14%

Natural gas (Bcf)

12%

Total equivalent (MMBOE) (1)

12%

Average sales price

Oil (per Bbl):

Price received

$

$

56%

Effect of crude oil hedging (2)

Realized price (3)

$

$

37%

Weighted average NYMEX price (per Bbl) (4)

$

$

41%

NGLs (per Bbl):

Realized price

$

$

47%

Natural gas (per Mcf):

Realized price

$

$

(21%)

Weighted average NYMEX price (per MMBtu) (4)

$

$

(10%)

--]

(1)

Second quarter 2017 includes 7,855 BOE/d from properties that have since been divested.

(2)

Whiting paid $53 million and received $5  million in pre-tax cash settlements on its crude oil hedges during the second quarter of 2018 and 2017, respectively.  A summary of Whiting’s outstanding hedges is included later in this news release.

(3)

Whiting’s realized price was reduced by $1.10 per Bbl and $2.72 per Bbl in the second quarter of 2018 and 2017, respectively, due to the Redtail deficiency payment.  The remaining contract ends in April 2020.

(4)

Average NYMEX prices weighted for monthly production volumes.







Three Months Ended

Six Months Ended



June 30,

June 30,



2018

2017

2018

2017



(per BOE, except production)

Production (MMBOE)



Sales price, net of hedging

$

$

$

$

Lease operating expense

Production tax

Cash general & administrative

Exploration

Cash interest expense

Cash income tax benefit

 -

 -



$

$

$

$







Guidance



Third Quarter

Full Year



2018

2018

Production (MMBOE) 

11.7     -     12.2

47.0     -     47.7

Lease operating expense per BOE 

$  7.70 - $  8.20

$  7.70 - $  8.20

General and administrative expense per BOE 

$  2.60 - $  2.90

$  2.60 - $  2.90

Interest expense per BOE 

$  3.80 - $  4.20

$  4.00 - $  4.40

Depreciation, depletion and amortization per BOE 

$16.75 - $17.75

$16.50 - $17.50

Production taxes (% of sales revenue) 

8.1%    -    8.5%

7.9%    -    8.3%

Oil price differential to NYMEX per Bbl (1)

($4.50) - ($5.50)

($4.50) - ($5.50)

Gas price differential to NYMEX per Mcf

($1.50) - ($2.00)

($1.50) - ($2.00)



(1)

Does not include the effects of NGLs.







Weighted Average

As a Percentage of

Derivative

Hedge

Contracted Crude

NYMEX Price

June 2018

Instrument

Period

(Bbls per Month)

(per Bbl)

Oil Production



Three-way collars (1)

2018

Sub-Floor/Floor/Ceiling



Q3

1,450,000

$37.07 - $47.07 - $57.30

56.6%



Q4

1,450,000

$37.07 - $47.07 - $57.30

56.6%



Swaps

2018

Fixed Price



Q3

400,000

$61.74

15.6%



Q4

400,000

$61.74

15.6%



Collars

2019

Floor/Ceiling



Q1

600,000

$50.00 - $71.80

23.4%



Q2

600,000

$50.00 - $71.80

23.4%



(1)

A three-way collar is a combination of options: a sold call, a purchased put and a sold put.  The sold call establishes a maximum price (ceiling) we will receive for the volumes under contract. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price. 







Three Months Ended

Six Months Ended



June 30,

June 30,



2018

2017

2018

2017

Selected operating statistics:

Production

Oil, MBbl

NGLs, MBbl

Natural gas, MMcf

Oil equivalents, MBOE (1)

Average prices

Oil per Bbl (excludes hedging)

$

$

$

$

NGLs per Bbl

$

$

$

$

Natural gas per Mcf

$

$

$

$

Per BOE data

Sales price (including hedging)

$

$

$

$

Lease operating

$

$

$

$

Production taxes

$

$

$

$

Depreciation, depletion and amortization

$

$

$

$

General and administrative

$

$

$

$

Selected financial data:
(In thousands, except per share data)

Total operating revenues

$

$

$

$

Total operating expenses

$

$

$

$

Total other expense, net

$

$

$

$

Net income (loss) attributable to common shareholders

$

$

$

$

Income (loss) per common share, basic (2)

$

$

$

$

Income (loss) per common share, diluted (2)

$

$

$

$

Weighted average shares outstanding, basic (2)

Weighted average shares outstanding, diluted (2)

Net cash provided by operating activities

$

$

$

$

Net cash provided by (used in) investing activities

$

$

$

$

Net cash provided by (used in) financing activities

$

$

$

$



(1)

The three and six months ended June 30, 2017 include 7,855 BOE/d and 8,035 BOE/d, respectively, from properties that have since been divested.

(2)

All share and per share amounts have been retroactively adjusted for the 2017 periods to reflect the Company’s one-for-four reverse stock split in November 2017.



Selected financial data:

Nine Months Ended

(In thousands)

June  30, 2018

Net cash provided by operating activities

$

Net cash used in investing activities

$

Net cash used in financing activities

$







June 30,

December 31,



2018

2017

ASSETS

Current assets:

Cash and cash equivalents

$

$

Accounts receivable trade, net

Prepaid expenses and other

Total current assets

Property and equipment:

Oil and gas properties, successful efforts method

Other property and equipment

Total property and equipment

Less accumulated depreciation, depletion and amortization

Total property and equipment, net

Other long-term assets

TOTAL ASSETS

$

$

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

$

 -

$

Accounts payable trade

Revenues and royalties payable

Accrued capital expenditures

Accrued interest

Accrued liabilities and other

Taxes payable

Derivative liabilities

Total current liabilities

Long-term debt

Asset retirement obligations

Other long-term liabilities

Total liabilities

Commitments and contingencies

Equity:

Common stock, $0.001 par value, 225,000,000 shares authorized; 92,185,043 issued and 90,967,365 outstanding as of June 30, 2018 and 92,094,837 issued and 90,698,889 outstanding as of December 31, 2017

Additional paid-in capital

Accumulated deficit

Total equity

TOTAL LIABILITIES AND EQUITY

$

$







Three Months Ended

Six Months Ended



June 30,

June 30,



2018

2017

2018

2017

OPERATING REVENUES

Oil, NGL and natural gas sales

$

$

$

$

OPERATING EXPENSES

Lease operating expenses

Production taxes

Depreciation, depletion and amortization

Exploration and impairment

General and administrative

Derivative (gain) loss, net

(Gain) loss on sale of properties

Amortization of deferred gain on sale

Total operating expenses

INCOME (LOSS) FROM OPERATIONS

OTHER INCOME (EXPENSE)

Interest expense

Loss on extinguishment of debt

 -

Interest income and other

Total other expense

INCOME (LOSS) BEFORE INCOME TAXES

INCOME TAX BENEFIT

Current

 -

 -

Deferred

 -

 -

Total income tax benefit

 -

 -

NET INCOME (LOSS)

Net loss attributable to noncontrolling interests

 -

 -

 -

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

$

$

$

INCOME (LOSS) PER COMMON SHARE (1)

Basic

$

$

$

$

Diluted

$

$

$

$

WEIGHTED AVERAGE SHARES OUTSTANDING (1)

Basic

Diluted



(1)

All share and per share amounts have been retroactively adjusted for the 2017 periods to reflect the Company’s one-for-four reverse stock split in November 2017.







Three Months Ended

Six Months Ended



June 30,

June 30,



2018

2017

2018

2017

Net income (loss) attributable to common shareholders

$

$

$

$

Adjustments:

Amortization of deferred gain on sale

(Gain) loss on sale of properties

Impairment expense

Loss on extinguishment of debt

 -

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

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

Tax impact of adjustments above

 -

 -

Adjusted net income (loss) attributable to common shareholders (1) 

$

$

$

$



Adjusted net income (loss) attributable to common shareholders per share, basic (2)

$

$

$

$

Adjusted net income (loss) attributable to common shareholders per share, diluted (2)

$

$

$

$



(1)

Adjusted Net Income (Loss) Attributable to Common Shareholders is a non-GAAP financial measure.  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) Attributable to Common Shareholders 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) Attributable for Common Shareholders 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.

(2)

All per share amounts have been retroactively adjusted for the 2017 periods to reflect the Company’s one-for-four reverse stock split in November 2017.







Three Months Ended

Six Months Ended



June 30,

June 30,



2018

2017

2018

2017

Net cash provided by operating activities

$

$

$

$

Operating cash outflow for settlement of commodity derivative contract

 -

 -

 -

Exploration

Changes in working capital

Discretionary cash flow (1)

$

$

$

$





Three Months Ended

Nine Months Ended



June 30, 2018

June 30, 2018

Net cash provided by operating activities

$

$

Capital expenditures

Operating cash flow in excess of capital expenditures (1)

$

$



(1)

Discretionary cash flow and operating cash flow in excess of capital expenditures 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 acquisitions, exploration and development.  Such measures 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.