1700 Broadway, Suite 2300

Denver, CO 80290-2300

Phone: 303.837.1661

FAX: 303.861.4023

Company Contact: Eric K. Hagen

February 21, 2018

Title: Vice President, Investor Relations

For immediate release

Phone: 303-837-1661

Email: Eric.Hagen@whiting.com

·

Q4 2017 Average Production at High End of Guidance; Increases 12% from Q3 2017

·

Fourth Quarter and Full-Year 2017 Capex Below Guidance

·

Fourth Quarter 2017 Net Cash Provided by Operating Activities Exceeds Capex by $116 Million

·

Q4 2017 Oil Differentials per Bbl Significantly below Low End of Guidance and G&A per BOE at Low End of Guidance

·

2018 Capital Budget of $750 Million Drives Estimated Average Annual Production of 128,400 BOE/d (9% Growth over 2017 Average Production) and Solid Free Cash Flow Generation

·

Williston Basin Operated Production Forecast to Grow 14% from Q4 2017 to Q4 2018 based on $600 Million Capital Budget







Three Months Ended



December 31,



2017

2016

Production (MBOE/d) (1)

Net cash provided by operating activities-MM

$

$

Discretionary cash flow-MM (2)

$

$

Realized price ($/BOE)

$

$

Total operating revenues-MM

$

$

Net loss attributable to common shareholders-MM (3)(4)

$

$

Per basic share (5)

$

$

Per diluted share (5)

$

$



Adjusted net loss attributable to common shareholders-MM (6)

$

$

Per basic share (5)

$

$

Per diluted share (5)

$

$



(1)

Fourth quarter 2016 includes 6,690 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)

For the three months ended December 31, 2017, this amount includes $835 million in non-cash pre-tax impairment charges for the partial write-down of the Redtail field in Colorado that is not currently being developed.  The Company did not recognize any impairment write-downs with respect to its proved oil and gas properties during the 2016 period presented.

(4)

Net loss attributable to common shareholders includes $73 million and $49 million of pre-tax, non-cash derivative losses for the three months ended December  31, 2017 and 2016, respectively.

(5)

All per share amounts have been retroactively adjusted for the 2016 period to reflect the Company’s one-for-four reverse stock split in November 2017.

(6)

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







Year Ended



December 31,



2017

2016

Production (MBOE/d) (1)

Net cash provided by operating activities-MM

$

$

Discretionary cash flow-MM (2)

$

$

Realized price ($/BOE)

$

$

Total operating revenues-MM

$

$

Net loss attributable to common shareholders-MM (3)(4)(5)

$

$

Per basic share (6)

$

$

Per diluted share (6)

$

$



Adjusted net loss attributable to common shareholders-MM (7)

$

$

Per basic share (6)

$

$

Per diluted share (6)

$

$



(1)

The year ended December  31, 2016 includes 7,465 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)

For the year ended December 31, 2017, this amount includes $835 million in non-cash pre-tax impairment charges for the partial write-down of the Redtail field in Colorado that is not currently being developed.  The Company did not recognize any impairment write-downs with respect to its proved oil and gas properties during the 2016 period presented.

(4)

Net loss attributable to common shareholders for the year ended December 31, 2017 includes $401 million of pre-tax loss on sale of properties, which primarily relates to the sale of our FBIR assets.  Net loss attributable to common shareholders for the year ended December 31, 2016 includes $185 million of pre-tax loss on sale of properties, which primarily relates to the sale of our North Ward Estes properties.

(5)

Net loss attributable to common shareholders includes $131 million and $151 million of pre-tax, non-cash derivative losses for the years ended December 30, 2017 and 2016, respectively.

(6)

All per share amounts have been retroactively adjusted for the 2016 period to reflect the Company’s one-for-four reverse stock split in November 2017.

(7)

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





Pad Name

Well Count

County

Average 24-Hour IP Per Well

Flatland 24-9 Pad

3

McKenzie

2,862

Frick 24-8 Pad

3

McKenzie

2,059

Hellandsaas 44-8 Pad

2

McKenzie

3,085

King 11-8 Pad

3

Williams

2,492

Scanlan 11-5 Pad

2

Williams

2,332

Scanlan 42-9 Pad

3

Williams

1,916







Three Months Ended



December 31,



2017

2016

Change

Production

Oil (MMBbl)

6%

NGLs (MMBbl)

15%

Natural gas (Bcf)

8%

Total equivalent (MMBOE) (1)

8%

Average sales price

Oil (per Bbl):

Price received

$

$

27%

Effect of crude oil hedging (2)

Realized price (3)

$

$

18%

Weighted average NYMEX price (per Bbl) (4)

$

$

12%

NGLs (per Bbl):

Realized price

$

$

89%

Natural gas (per Mcf):

Realized price

$

$

-

Weighted average NYMEX price (per MMBtu) (4)

$

$

(4%)

--]

(1)

Fourth quarter 2016 includes 6,690 BOE/d from properties that have since been divested.

(2)

Whiting paid $2 million and received $21 million in pre-tax cash settlements on its crude oil hedges during the fourth quarter of 2017 and 2016, respectively.  A summary of Whiting’s outstanding hedges is included later in this news release.

(3)

Whiting’s realized price was reduced by $1.74 per Bbl and $1.79 per Bbl in the fourth quarter of 2017 and 2016, respectively, due to the Redtail fixed fee differential deficiency payment.  The remaining contract ends in April 2020.

(4)

Average NYMEX prices weighted for monthly production volumes.







Three Months Ended

Year Ended



December 31,

December 31,



2017

2016

2017

2016



(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



First Quarter

Full Year



2018

2018

Production (MMBOE) 

11.1     -     11.6

46.5     -     47.2

Lease operating expense per BOE 

$  7.90 - $  8.50

$  7.90 - $  8.30

General and administrative expense per BOE 

$  2.70 - $  3.00

$  2.60 - $  2.90

Interest expense per BOE 

$  4.50 - $  4.90

$  4.00 - $  4.50

Depreciation, depletion and amortization per BOE 

$17.50 - $18.50

$17.10 - $18.10

Production taxes (% of sales revenue) 

7.7%    -    8.3%

8.0%    -    8.3%

Oil price differentials 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

December 2017

Instrument

Period

(Bbls per Month)

(per Bbl)

Oil Production



Three-way collars (1)

2018

Sub-Floor/Floor/Ceiling



Q1

1,450,000

$37.07 - $47.07 - $57.30

55.1%



Q2

1,450,000

$37.07 - $47.07 - $57.30

55.1%



Q3

1,450,000

$37.07 - $47.07 - $57.30

55.1%



Q4

1,450,000

$37.07 - $47.07 - $57.30

55.1%



Swaps

2018

Fixed Price



Q1

400,000

$61.74

15.2%



Q2

400,000

$61.74

15.2%



Q3

400,000

$61.74

15.2%



Q4

400,000

$61.74

15.2%



Collars

2019

Floor/Ceiling



Q1

150,000

$50.00 - $65.33

5.7%



Q2

150,000

$50.00 - $65.33

5.7%



(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

Year Ended



December 31,

December 31,



2017

2016

2017

2016

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 loss attributable to common shareholders

$

$

$

$

Loss per common share, basic (2)

$

$

$

$

Loss per common share, diluted (2)

$

$

$

$

Weighted average shares outstanding, basic

Weighted average shares outstanding, diluted

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 months and full-year ended December  31,  2016 include 6,690 BOE/d and 7,465 BOE/d, respectively, from properties that have since been divested.

(2)

All share and per share amounts have been retroactively adjusted for the 2016 periods to reflect the Company’s one-for-four reverse stock split in November 2017.







December 31,



2017

2016

ASSETS

Current assets:

Cash and cash equivalents

$

$

Restricted cash

 -

Accounts receivable trade, net

Prepaid expenses and other

Assets held for sale (1)

 -

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

$

$







December 31,



2017

2016

LIABILITIES AND EQUITY

Current liabilities:

Current portion of long-term debt

$

$

 -

Accounts payable trade

Revenues and royalties payable

Accrued capital expenditures

Accrued interest

Accrued lease operating expenses

Accrued liabilities and other

Taxes payable

Derivative liabilities

Accrued employee compensation and benefits

Liabilities related to assets held for sale (1)

 -

Total current liabilities

Long-term debt

Deferred income taxes

 -

Asset retirement obligations

Other long-term liabilities

Total liabilities

Commitments and contingencies

Equity:

Common stock, $0.001 par value, 225,000,000 shares authorized; 92,094,837 issued and 90,698,889 outstanding as of December 31, 2017 and 91,793,472 issued and 90,503,482 outstanding as of December 31, 2016 (2)

Additional paid-in capital

Accumulated deficit

Total Whiting shareholders' equity

Noncontrolling interest

 -

Total equity

TOTAL LIABILITIES AND EQUITY

$

$



(1)

As of December 31, 2016, “Assets held for sale” is comprised of Whiting’s North Dakota midstream assets.  This transaction closed on January 1, 2017.

(2)

All share amounts (except par value amounts) as of December 31, 2016 have been retroactively adjusted to reflect the Company’s one-for-four reverse stock split in November 2017.







Three Months Ended

Year Ended



December 31,

December 31,



2017

2016

2017

2016

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

LOSS FROM OPERATIONS

OTHER INCOME (EXPENSE)

Interest expense

Loss on extinguishment of debt

 -

 -

Interest income and other

Total other expense

LOSS BEFORE INCOME TAXES

INCOME TAX BENEFIT

Current

Deferred

Total income tax benefit

NET LOSS

Net loss attributable to noncontrolling interests

 -

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

$

$

$

LOSS PER COMMON SHARE (1)

Basic

$

$

$

$

Diluted

$

$

$

$

WEIGHTED AVERAGE SHARES OUTSTANDING (1)

Basic

Diluted

1

(1)

All share and per share amounts have been retroactively adjusted for the 2016 periods to reflect the Company’s one-for-four reverse stock split in November 2017.







Three Months Ended

Year Ended



December 31,

December 31,



2017

2016

2017

2016

Net loss attributable to common shareholders

$

$

$

$

Adjustments:

Amortization of deferred gain on sale

(Gain) loss on sale of properties

Impairment expense

Penalties for early termination of drilling rig contracts

 -

 -

 -

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

Acceleration of unamortized discount upon conversion of mandatory convertible notes (non-taxable)

 -

 -

Tax impact of adjustments above

Valuation allowance established on deferred tax assets

 -

 -

Tax impact of enactment of Tax Cuts and Jobs Act

 -

 -

Tax impact of Section 382 limitation on net operating losses and tax credits

 -

Adjusted net loss attributable to common shareholders (1)

$

$

$

$



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

$

$

$

$

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

$

$

$

$



(1)

Adjusted Net 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 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 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 2016 periods to reflect the Company’s one-for-four reverse stock split in November 2017.







Three Months Ended

Year Ended



December 31,

December 31,



2017

2016

2017

2016

Net cash provided by operating activities

$

$

$

$

Exploration

Exploratory dry hole costs

 -

 -

Changes in working capital

Discretionary cash flow (1)

$

$

$

$



(1)

Discretionary cash flow is a non-GAAP measure.  Discretionary cash flow is presented because management believes it provides useful information to investors for analysis of the Company’s ability to internally fund acquisitions, exploration and development.  Discretionary cash flow 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.