Whiting Petroleum Corp (NYSE: WLL) stock fell 13.21% on 23rd, 2019 (Source: Google finance) but recovered over 3.1% in the pre-market session of August 26th, 2019 (Source: Google finance).
During the second quarter of 2019, Whiting’s capital expenditures totaled $232 million. This includes $16 million for non-operated drilling and completions. In the second quarter, Whiting put on production 50 gross wells in the Williston Basin. Subsequent to the quarter, Whiting entered into agreements to sell $53 million of non-operated properties. These properties encompass 6,800 net acres and had production of 703 BOE/d as of April 2019. The transactions are anticipated to close during the third quarter of 2019.
Moreover, the second quarter of 2019 production averaged 127,090 BOE/d. Williston Basin production averaged 113,191 BOE/d. Redtail field production averaged 13,137 BOE/d. Second quarter oil production averaged 81,980 barrels of oil per day (Bbl/d). Infrastructure constraints and associated operating delays reduced this production by approximately 3,000 Bbl/d. These constraints are projected to persist through the remainder of 2019 as reflected in the Company’s updated guidance. In the Foreman Butte area, Whiting put its first 11 wells on production during the quarter. They produced an average of 910 Bbl/d per well over the first 30 days on production. This compares to historical results in the area that produced an average of 420 Bbl/d per well over a similar period. This 117% increase in productivity stems from the application of Whiting’s proprietary completion process. Whiting purchased the Foreman Butte area, which encompasses 54,833 net acres, for $130 million in July of 2018. The property had 1,290 BOE/d at the time of purchase.
WLL in the second quarter of FY 19 has reported the adjusted loss per share of 28 cents, missing the analysts’ estimates for the adjusted loss per share of 24 cents, according to Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.9 percent to $426.26 million in the second quarter of FY 19, missing the analysts’ estimates for revenue by 5.28%.
Meanwhile, WLL has appointed Lyne B. Andrich and Michael G. Hutchinson to its Board of Directors effective September 1, 2019. Further, WLL is implementing an organizational redesign and cost reduction strategy to better align Whiting’s business with the current operating environment and drive long term value. As part of this restructuring plan, the Company has reduced its workforce by 33% or 254 positions. Of this total, 94 positions are executive and corporate positions. Whiting expects the restructuring to result in $50 million of annual cost savings.