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Whiting Petroleum Corporation Valuation Report, July 2010 - Strategic and Operational Analysis - Product Image

Whiting Petroleum Corporation Valuation Report, July 2010 - Strategic and Operational Analysis

  • Published: July 2010
  • 187 pages
  • GlobalData

Whiting Petroleum Corporation Valuation Report, July 2010 - Strategic and Operational Analysis

Summary

Whiting Petroleum is an independent oil and gas company engaged in development, production and exploration activities in the US including the Permian Basin, Rocky Mountains, Mid-Continent, Gulf Coast and Michigan regions. The company focuses on asset acquisitions, developing its existing assets and exploring new discoveries in order to develop its crude oil and natural gas portfolio.

The company increased its production from 17.5 MMboe in 2008 to 20.3 MMboe in 2009, an increase of 16%. Additionally, the company’s reserves have increased by 15% to 275 MMboe, primarily due to successful drilling in the Sanish and Parshall fields, and a 17.3 MMboe positive reserves revision caused by higher commodity prices.

Scope

- Investment Thesis: This section highlights the companies new ventures, liquidity issues, assets analysis, hedging, new projects details, capex funding, geographical results of oil and gas operations, and other related analysis.
- Goals and Strategies: Provide highlights on their existing and upcoming challenges with the possible READ MORE >

1 Table of contents
1.1 List of Tables
1.2 List of Figures
2 Whiting Petroleum Corporation, Company Overview
3 Whiting Petroleum Corporation, Watchlist for 2010
4 Whiting Petroleum Corporation, Investment Summary
4.1 Whiting Petroleum’s Bakken and Three Forks Exposure To Strengthen Its Long Term Growth Plans
4.1.1 Focus on the Sanish Field in the Bakken Play and Three Forks, to Accelerate Reserves and Production Growth
4.1.2 Extending the Focus on the Bakken Play and Three Forks Through its Parshall Field Presence
4.1.3 Whiting Petroleum To Further Emphasize Organic Growth Through Its EOR Projects
4.2 Focus on Lewis & Clark: Exploring New Opportunities
4.3 Less Leveraged and Strong Liquidity Position Will Drive Higher Capex in 2010
5 Whiting Petroleum Corporation, SWOT Analysis
5.1 Strengths
5.1.1 Technological Expertise for Conventional Plays
5.1.2 Maintaining Reserve Base over the years
5.2 Weaknesses
5.2.1 High Dependency on Crude Oil
5.2.2 Overdependence on Fewer Assets
5.3 Opportunities
5.3.1 Increasing Focus on Bakken Shale and New Discoveries
5.3.2 Growing Inorganically Through Asset Acquisitions
5.4 Threats
5.4.1 Undiversified Portfolio Could Threaten its Long Term Sustainability
6 Whiting Petroleum Corporation, Goals and Strategies
6.1 Organic Reserve Additions
6.2 Adopting EOR Techniques To Enhance Reserves Base and Production
6.3 Focusing on Acquisitions
6.4 Maintaining A Strong Financial Position
7 Whiting Petroleum Corporation, Production
7.1 Production Overview
7.2 Relying on the Sanish and Parshall Fields For Production Growth
7.3 Focusing on Production from its North Ward Estes and Postle Fields
7.4 Increasing Its Gas Presence Through the Flat Rock and Sulphur Creek Fields
7.5 Total Costs Inclined Towards Development Due To Increasing Focus on Development of Legacy Assets
7.6 Key Upstream Projects Update
8 Whiting Petroleum Corporation, Exploration and Development
8.1 Exploration and Development Profile
8.2 Increasing Drilling Activities in the Lewis & Clark Prospect
8.3 Increasing Development Activities in the Bakken Shale
8.4 Focusing On Development Activities In Its EOR Projects To Sustain Its Production
8.5 Increasing Drillbit Reserve Additions; Declining Associated Costs
9 Whiting Petroleum Corporation, M&A Activity
10 Whiting Petroleum Corporation, Outlook
11 Whiting Petroleum Corporation, Forecast Production and Financial Statements
11.1 Income Statement (2007-2014)
11.2 Balance Sheet (2007-2014)
11.3 Cash Flow Statement (2007-2014)
11.4 Financial Ratios
12 Whiting Petroleum Corporation, Valuations
13 Whiting Petroleum Corporation, Peer Comparison
13.1 Share Price Performance
13.2 Operational and Financial Performance
13.3 Key Financial and Operational Ratios
13.4 Valuation Ratios
14 Whiting Petroleum Corporation, Key Risks
14.1 Fluctuating Crude Oil and Natural Gas Prices
14.2 Reserves and Drilling Operations
14.3 Competition
14.4 Political Instability
15 Whiting Petroleum Corporation, Detailed Financial and Operational Metrics
15.1 Results of Oil & Gas Operations Per BOE Produced, Q4, 2008-Q4, 2009
15.1.1 Results of Oil & Gas Operations per BOE Growth Rates, Q4, 2008-Q4, 2009
15.2 Whiting Petroleum Corporation, Quarterly E&P Costs Trends
15.2.1 Upstream Capital Expenditure, Q4, 2008-Q4, 2009
15.3 Whiting Petroleum Corporation, Quarterly Production Trends
15.3.1 Total Crude Oil and Natural Gas Production Trend, Q4, 2008-Q4, 2009
15.3.2 Total Crude Oil & Natural Gas Production, By Country/Region, Q4, 2008-Q4, 2009
15.3.3 Total Crude Oil and Natural Gas Production Per Share, Q4, 2008-Q4, 2009
15.4 Whiting Petroleum Corporation Crude Oil Production
15.4.1 Total Crude Oil Production Trend, Q4, 2008-Q4, 2009
15.4.2 Crude Oil Production, By Country/Region, Q4, 2008-Q4, 2009
15.5 Whiting Petroleum Corporation Natural Gas Production
15.5.1 Total Natural Gas Production Trend, Q4, 2008-Q4, 2009
15.5.2 Natural Gas Production, By Country/Region, Q4, 2008-Q4, 2009
15.6 Whiting Petroleum Corporation, Production and Reserves Trends
15.6.1 Total Crude Oil and Natural Gas Production and Reserves Trend, 2004-2009
15.6.2 Total Crude Oil & Natural Gas Production and Reserves By Country/Region, 2004-2009
15.6.3 Total Crude Oil and Natural Gas Reserve Changes, 2004-2009
15.7 Crude Oil/Liquids Production and Reserve
15.7.1 Crude Oil/Liquids Production and Reserve Trend, 2004-2009
15.7.2 Crude Oil Production and Reserves By Country/Region, 2004-2009
15.7.3 Crude Oil/Liquids Reserve Changes, 2004-2009
15.8 Natural Gas Production and Reserves
15.8.1 Natural Gas Production and Reserve Trend, 2004-2009
15.8.2 Natural Gas Production and Reserves, By Country/Region, 2004-2009
15.8.3 Natural Gas Reserve Changes, 2004-2009
15.9 Total Crude Oil and Natural Gas Reserves Life Index
15.9.1 Total Crude Oil and Natural Gas Reserves Life Index, 2004-2009
15.9.2 Total Crude Oil and Natural Gas Reserves Life Index, By Country/Region, 2004-2009
15.10 Whiting Petroleum Corporation, E&P Costs Trends
15.10.1 Upstream Capital Expenditure, 2004-2009
15.10.2 Acquisition Costs By Country/Region, 2004-2009
15.10.3 Exploration and Development Costs, By Country/Region, 2004-2009
15.11 Oil and Gas Cost Per Boe, $/boe
15.11.1 Oil and Gas Cost Per Boe, $/boe, 2004-2009
15.11.2 Oil and Gas Cost Per Boe, $/boe, By Country/Region, 2004-2009
15.12 Whiting Petroleum Corporation, Reserve Replacement Ratio
15.12.1 Oil and Gas Production Replacement Ratio, 2004-2009
15.12.2 Oil and Gas Production Replacement Ratio, By Country/Region, 2004-2009
15.13 Whiting Petroleum Corporation, Results of Oil & Gas Operations Trend
15.13.1 Oil and Gas Revenue and Expenses, 2004-2009
15.13.2 Oil and Gas Revenue and Expenses, By Country/Region, 2004-2009
15.14 Oil and Gas Revenue and Expenses, Per Boe
15.14.1 Oil and Gas Revenue and Expenses, By Boe, 2004-2009
15.14.2 Oil and Gas Revenue and Expenses Per Boe, By Country/Region, 2004-2009
15.15 Oil and Gas Performance Metrics
15.16 Whiting Petroleum Corporation, Land Holdings and Well Data
15.16.1 Gross and Net Developed and Undeveloped Acreage, 2004-2009
15.16.2 Gross and Net Developed and Undeveloped Acreage, By Country/Region, 2004-2009
15.17 Well Statistics
15.17.1 Producible Oil and Gas Wells, 2004-2009
15.17.2 Producible Oil and Gas Wells, By Country/Region, 2004-2009
15.17.3 Exploration and Development Wells Drilled, 2004-2009
15.17.4 Exploration and Development Wells Drilled, By Country/Region, 2004-2009
15.17.5 Developed Reserves per Well, Oil (Mbbls per Well), Gas (MMcf per Well), Oil & Gas (Mboe per Well), 2004-2009
15.17.6 Developed Reserves per Well, By Country/Region, 2004-2009
16 Appendix
16.1 Methodology
16.1.1 Coverage
16.1.2 Secondary Research
16.1.3 Primary Research
16.2 Data Sources
16.2.1 Company Source
16.2.2 SEC/Other Regulatory Filings
16.2.3 Agency Reports
16.2.4 Other Sources
16.3 Expert Panel Validation
16.4 Definitions
16.5 Units of Measure
16.6 Other Abbreviations
16.7 About Us
16.8 Disclosure
16.9 Disclaimer

Whiting Petroleum’s Bakken and Three Forks Exposure To Strengthen Its Long Term Growth Plans

Whiting Petroleum has been aggressively focusing on the Bakken and Three Forks formation, primarily in the Sanish and Parshall fields of Mountrail County, North Dakota, in order to explore its huge potential reserves. The company has engaged in 123 wells, including 88 operated wells as of February 15, 2010, in the Sanish field. Initial production rates from the wells in these fields are on average more than 1,000 boe/d, though 85% of the wells in the North Dakota region have initial production of less than 1,000 boe/d.

Focus on the Sanish Field in the Bakken Play and Three Forks, to Accelerate Reserves and Production Growth

The company’s major focus has been in the Sanish field over the years. As at 2009, 85% of the total reserves added of the Bakken Play were from this field. However, it has strategically increased its activities in this field in 2009, in order to unleash its significant resource potential and pave the way for its long term growth in reserves and production. It is also the operator of this field, with approximately 69,636 net acres as of December 31, 2009. Moreover, it has approximately a 61% working interest in the currently producing 117 wells in this field.

The company entered into a partnership agreement in 2009 in this field. For approximately $107.3m, it sold its 50% working interest in its first and second wells of this field, a 1,280 acre unit and 640 acre unit respectively, in order to fund its 65% of the total drilling and well completion costs. Whiting Petroleum used this funding to pay off some of its outstanding credit agreements, which will make it less leveraged and enable it to borrow from external sources for the development of this field. Additionally, due to its cost reduction techniques in 2009 in this field, the company managed to reduce the number of days from well spud to total depth by 11 days, to an average of 27 days.

To further strengthen its presence in the Sanish Field, the company constructed the Robinson Lake Gas Plant, to process the gas stream from the Sanish wells. Moreover, it also completed the installation of a 17 mile oil line, connecting the Sanish field to the Enbridge pipeline in Stanley, North Dakota, in December 2009.

The company’s net production from this field increased by 68% from 7.5 Mboe/d in December 2008, to an average of 12.6 Mboe/d in December 2009. This increase in production is primarily due to its aggressive development activities and the reduction in the number of days from well spud to total depth.

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