whiting petroleum
TRANSCRIPT
Whiting Petroleum
May 2021
Positioned to Succeed
2NYSE: WLL
This presentation contains statements that Whiting believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding Whiting’s future financial position,business strategy, projected production, cash flows, revenues, costs, capital expenditures and debt levels, and plans and objectives of management for future operations,are forward-looking statements. When used in this presentation, words such as “guidance,” or we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” orthe negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subjectto risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. These risks and uncertainties include,but are not limited to: risks associated with Whiting’s emergence from the chapter 11 bankruptcy; declines in, or extended periods of low oil, NGL or natural gas prices;Whiting’s level of success in exploration, development and production activities; risks related to Whiting’s level of indebtedness, Whiting’s ability to comply with debtcovenants, periodic redeterminations of the borrowing base under Whiting’s credit agreement and Whiting’s ability to generate sufficient cash flows from operations toservice Whiting’s indebtedness; Whiting’s ability to generate sufficient cash flows from operations to meet the internally funded portion of Whiting’s capital expendituresbudget; Whiting’s ability to obtain external capital to finance exploration and development operations; negative impacts from outbreaks of communicable diseases, includingthe COVID-19 pandemic; Whiting’s inability to access oil and gas markets due to market conditions or operational impediments, including any court rulings which may resultin the inability to transport oil on the Dakota Access Pipeline; negative impacts from litigation and legal proceedings, including ongoing claims in connection with the chapter11 bankruptcy; the impact of negative shifts in investor sentiment towards the oil and gas industry; impacts resulting from the allocation of resources among Whiting’sstrategic opportunities; the geographic concentration of Whiting’s operations; impacts to financial statements as a result of impairment write-downs and other cash andnoncash charges; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; revisions to reserve estimates as a result of changes incommodity prices, regulation and other factors; inaccuracies of Whiting’s reserve estimates or Whiting’s assumptions underlying them; the timing of Whiting’s explorationand development expenditures; risks relating to decreases in Whiting’s credit rating; market availability of, and risks associated with, transport of oil and gas; Whiting’sability to successfully complete asset dispositions and the risks related thereto; Whiting’s ability to drill producing wells on undeveloped acreage prior to its lease expiration;shortages of or delays in obtaining qualified personnel or equipment, including drilling rigs and completion services; weakened differentials impacting the price Whitingreceives for oil and natural gas; risks relating to any unforeseen liabilities of Whiting’s; the impacts of hedging on Whiting’s results of operations; adverse weather conditionsthat may negatively impact development or production activities; uninsured or underinsured losses resulting from Whiting’s oil and gas operations; lack of control over non-operated properties; failure of Whiting’s properties to yield oil or gas in commercially viable quantities; the impact and costs of compliance with laws and regulationsgoverning Whiting’s oil and gas operations; the potential impact of changes in laws that could have a negative effect on the oil and gas industry; impacts of localregulations, climate change issues, negative public perception of Whiting’s industry and corporate governance standards; Whiting’s ability to replace Whiting’s oil andnatural gas reserves; unforeseen underperformance of or liabilities associated with acquired properties or other strategic partnerships or investments; competition in the oiland gas industry; any loss of Whiting’s senior management or technical personnel; cybersecurity attacks or failures of Whiting’s telecommunication and other informationtechnology infrastructure; and other risks described under the caption “Risk Factors” in Item 1A of Whiting’s Annual Report on Form 10 K for the period ended December31, 2020. Whiting assumes no obligation, and disclaim any duty, to update the forward-looking statements in this presentation.
Forward-Looking Statements
3NYSE: WLL (1) 04/30/2021
(2) Excludes shares reserved for bankruptcy claims and equity compensation and
shares issuable upon exercise of warrants
(3) 03/31/2021
Positioned for Today’s E&P Business Environment
Ticker (NYSE) WLL
Share Price (1) $40.07
Shares Outstanding (1)(2) 39.1 million
Market Cap $1.6 billion
Debt (3) $245 million
DJ BasinWeld
Corporate HQDenver
Williston BasinNorth Dakota / Montana
WHITING PETROLEUM FRAMEWORK FOR A LEADING SHALE
UPSTREAM INDEPENDENT
✓ Leading debt coverage of less than 0.4x debt to EBITDAX(4)
✓ Anticipated 2021 free cash flow generation in excess of $300mm at $55 WTI
✓ Low decline, sustainable production
✓ Oil-weighted commodity mix positions company for pricing recovery
✓ Positioned for value enhancing consolidation
✓ New leadership with vision and compensation aligned with shareholders
MARKET STATISTICS
(4) Based on annualized 1Q-2021 Adjusted EBITDAX ($170 MM) to 03/31/2021
Ending Debt
4NYSE: WLL
Mission to Deliver Shareholder Value
BALANCE SHEET RESILIENCE ACROSS CYCLES
✓MAINTAIN CONSERVATIVE DEBT
METRICS
RETURNS-BASED BUSINESS MODEL
✓PREDICTABILITY: LARGE PDP
RESOURCE IN WELL UNDERSTOOD
BASINS
PORTFOLIO OPTIMIZATION
✓SUSTAIN AND ENHANCE SCALE /
EFFICIENCIES
✓COMMITMENT TO REDUCE COSTS TO
BECOME THE MOST EFFICIENT
OPERATOR
✓TRANSITION TOWARDS SUSTAINABLE
SHAREHOLDER RETURNS
✓IMPROVED MIDSTREAM CONTRACTS
POST-REORGANIZATION
✓PRUDENT CAPITAL DISCIPLINE WITH
FULL-CYCLE RETURN FOCUS
✓CONTINUE TO ENHANCE
LIQUIDITY✓ROBUST HEDGING PROGRAM
✓FOCUS ON ACHIEVING BEST-IN-
CLASS G&A
5NYSE: WLL
Leadership: Uniquely Experienced and Shareholder Focused
James HendersonChief Financial Officer
▪ EVP and CFO of SRC Energy from 2015 until 2020
▪ Prior to SRC Energy, served as CFO of Kodiak Oil & Gas
Lynn PetersonPresident & Chief Executive Officer
▪ CEO and Chairman of the Board for SRC Energy from 2015 until its acquisition
by PDC Energy in January 2020
▪ Co-founder, CEO and Chairman of Kodiak Oil & Gas, a Bakken E&P producer,
prior to SRC Energy
Chip RimerChief Operating Officer
▪ Whiting’s COO since November 2018
▪ Served as the SVP of US Onshore for Noble Energy after joining in 2002 and
serving in various operational roles
SENIOR MANAGEMENT
Vice Chairman, Kayne Anderson
Capital Advisors
36 years of energy investment
banking and principal investing
experience at Kayne Anderson,
UBS, PaineWebber and Dean
Witter
Kevin McCarthy
Chairman, Nominating &
Governance and Compensation
Committees
Janet Carrig
Nominating & Governance Chair,
ESG Committees
Lynn Peterson
CEO, ESG Committee
Susan Cunningham
ESG Chair, Audit Committees
Paul Korus
Audit Chair, Nominating &
Governance Committees
Daniel Rice
Audit and Compensation
Committees
Deep Sector Experience
Anne Taylor
Compensation Chair, ESG,
CommitteesCommittee Roles
BOARD OF DIRECTORS
Former Chief Executive Officer &
Chairman, SRC Energy
40 years of oil & gas industry and
management experience at
SRC Energy, Kodiak Energy
and CP Resources
Former Senior Vice President,
Legal, General Counsel, and
Corporate Secretary,
ConocoPhillips
37 years of oil & gas
industry and legal experience
at various corporations and
law firms
Founding Partner Rice
Investment Group
15 years of oil & gas
management and investment
experience at Rice Energy (CEO),
TPH & Co, and Transocean
Former Senior Vice President
and Chief Financial Officer,
Cimarex
33 years of oil & gas industry
and financial services
experience at Cimarex, Apache
and Petrie Parkman
Former Vice Chairman /
Managing Partner, Deloitte
31 years of experience at
Deloitte and current public
board experience at
Southwestern Energy
and Group 1 Automotive
Former Executive Vice
President, Environment,
Health, Safety & Regulatory &
New Frontiers, Noble Energy
37 years of oil & gas
experience including management,
operations and geology at Noble
Energy, Chevron, Equinor and
Amoco
6NYSE: WLL
Commitment to ESG and Safety Measures in Everything We Do
CONTINUED FOCUS ON SUSTAINABILITY
ENVIRONMENTAL SAFETY SOCIAL GOVERNANCE
✓ Committed to meeting gas capture requirements in North Dakota
✓ Implemented vehicle fleet management program, reducing emissions from Whiting vehicles
✓ Industry-leading Leak Detection and Repair program that exceeds regulations
✓ The safety of our employees, contractors and communities is our highest priority
✓ Created Workover Rig Taskforce to improve communication, safety and consistency on our locations
✓ Safety performance and company values as a component in vendor selection
✓ Continued focus on increasing employee and contractor diversity
✓ Paid volunteer hours for employees to volunteer at non-profits of their choice
✓ Commitment to Whiting values through quarterly awards program for employees living our values
✓ New Board of Directors consisting of independent, cross-functional and diverse members
✓ Reset executive compensation cash salary and bonus targets
✓ ESG Committee led by directors focused on environmental, safety and social responsibility issues and impacts
7NYSE: WLL
18 29 40 52 4965
96133 126
59
78 28
17
16
2557
2338
4761
77 82
112
158
161
Peer A Peer C Peer B Peer E Peer D Peer F Peer H Peer G
0.6x1.3x
2.3x 2.4x 2.4x2.8x
3.5x 3.7x 3.8x
Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H
Dominant Williston Basin Independent Position
THE WHITING SCALE ADVANTAGE WILLISTON BASIN PEER NET LEVERAGE
NET DEBT + PREFERRED EQUITY / LTM EBITDAX
WILLISTON BASIN DAILY PRODUCTION (MBOEPD)
Source: Company filings and presentations, Enverus, Bloomberg.Note: LTM EBITDAX and production figures shown.Q4 2020 Peers include CLR, CPE, HES, LPI, MRO, NOG, OAS,OVV. Reflects book value of debt for latest filings. OAS shown as E&P only.Note: Williston Basin acreage shown Q4 2020Note: Production figures shown Q1 2021. Peers include CLR, DVN, ERF, HES, MRO, NOG, OAS, OVV Reflects book value of debt for latest filings. OAS shown as E&P only.
With one of the largest footprints in the Williston Basin, Whiting’s renewed focus on leveraging the benefits of scale to drive portfolio optimization and
free cash flow
✓ Transformed capital structure added strength relative to peers
✓ One of the largest producers in the Williston Basin among independent
operators
✓ Larger scale allows for operating flexibility to maximize margins and sustain
cycles
WILLISTON BASIN NET ACREAGE (000s)
Liquids
Natural Gas
70 85 95
183 255
402
490 530
787
Peer A Peer B Peer C Peer D Peer E Peer F WLL Peer G Peer H
8NYSE: WLL
Inventory Summary
WHITING INVENTORY >30% IRR (1)
(1) Assumes current cost structure and commodity differentials(2) As of Q1-2021
185
288
432
0
100
200
300
400
500
$45 $50 $55
Gro
ss L
oca
tio
ns
WTI
ACREAGE POSITIONS
Colorado85k net acres7.5 Mboepd(2)
North Dakota / Montana478k net acres82.2 Mboepd(2)
31 DUC locations(2)
9NYSE: WLL
Hedging Positions that Mitigate Cash Flow VariabilityAs of April 30, 2021
71% of forecasted crude
oil production and 75% of
natural gas production
hedged for Bal 2021
Note: Strike prices represent weighted averages
Note: Bal 2021 hedges include settlement periods of April through December 2021 for all products.
Note: 2023 crude oil and natural gas hedges include settlement periods of January through June 2023.
Note: Whiting also has hedges in place for Ventura Basis, Clearbrook crude oil differentials and Propane not listed in the above tables.
CRUDE OIL HEDGES
NATURAL GAS HEDGES
Commodity
Settlement
Period Index
Derivative
Instrument
Total
Volumes Units
Swap
Price Floor Ceiling
Crude Oil Bal 2021 NYMEX WTI Fixed Price Swaps 4,724 MBbl $44.44 - -
Crude Oil Bal 2021 NYMEX WTI Two-way Collars 4,796 MBbl - $38.95 $47.05
Crude Oil 2022 NYMEX WTI Fixed Price Swaps 630 MBbl $54.30 - -
Crude Oil 2022 NYMEX WTI Two-way Collars 9,197 MBbl - $42.61 $52.87
Crude Oil 2023 NYMEX WTI Two-way Collars 2,706 MBbl - $46.82 $57.75
Total 22,053
Commodity
Settlement
Period Index
Derivative
Instrument
Total
Volumes Units
Swap
Price Floor Ceiling
Natural Gas Bal 2021 NYMEX Henry Hub Fixed Price Swaps 14,430 Bbtu $2.81 - -
Natural Gas Bal 2021 NYMEX Henry Hub Two-way Collars 8,250 Bbtu - $2.60 $2.79
Natural Gas 2022 NYMEX Henry Hub Fixed Price Swaps 4,895 Bbtu $2.67 - -
Natural Gas 2022 NYMEX Henry Hub Two-way Collars 10,720 Bbtu - $2.35 $2.85
Natural Gas 2023 NYMEX Henry Hub Two-way Collars 4,065 Bbtu - $2.42 $2.79
Total 42,360
10NYSE: WLL
2021 GuidanceAn operating plan designed to provide free cash flow and further strengthen balance sheet
Oil production (MBO per day) 48 – 52
Total production (MBOE per day) 82 – 88
Capital expenditures (mm) $228 – $252
Lease operating expenses (mm) $220 – 245
General and administrative cash expense (mm) (1) $48 – $52
Oil price wellhead differential to NYMEX per Bbl. (2)(3) $(6.00) – $(8.00)
Natural gas price differential to NYMEX per Mcf (2) $(1.50) – $(1.70)
Wells drilled (Gross/Net) 37 / 24
Wells turned in line (Gross/Net) 56 / 37
Rig Count/Completion Crew 1.5 / 1.5
(1) Net of allocations to LOE and reimbursable costs and excludes non-cash equity compensation expense(2) Includes gathering, transportation and compression (3) The range reflects the variable effects of possible transportation disruption
11NYSE: WLL
EBITDAX Reconciliation
Whiting Petroleum Corporation
Adjusted EBITDA and EBITDAX Reconciliation (IN THOUSANDS)
Q1 '21 Q4 '20 Q3 '20 Q2 '20 Q1 '20
3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020
Net income (loss) $ (946) $ (1,197) $ 277,695 $ (574,315) $ (3,628,571)
Income tax expense (benefit) - 147 (67,531) (1,028) -
Interest expense 5,103 5,952 13,507 16,425 45,250
Interest income - (2) (145) - -
Depreciation, depletion and amortization 53,729 57,392 91,350 83,549 183,968
Amortization of deferred gain on sale - - (1,171) (1,908) (2,037)
EBITDA $ 57,886 $ 62,292 $ 313,705 $ (477,277) $ (3,401,390)
Adjustments:
Total measure of derivative (gain) loss reported under U.S. GAAP 146,693 55,308 12,531 6,632 (231,371)
Total cash settlements received (paid) on commodity derivatives
during the period, net of premiums/costs (39,294) (4,973) 300 14,393 31,821
Non-cash stock compensation 2,309 515 787 1,333 1,599
(Gain) loss on extinguishment of debt - - - - (25,883)
(Gain) loss on sale of properties - - 1,675 511 (864)
Impairment expense 1,441 3,234 7,516 409,277 3,745,092
Restructuring and other one-time charges - 3,025 15,337 10,771 16,113
Reorganization items, net - - (259,232) 41,813 -
Adjusted EBITDA $ 169,035 $ 119,401 $ 92,619 $ 7,453 $ 135,117
Exploration expense 1,181 425 6,908 11,879 8,365
Adjusted EBITDAX $ 170,216 $ 119,826 $ 99,527 $ 19,332 $ 143,482