Business Wire | Nov 5, 2020 04:01PM EST

Whiting Petroleum Reports Third Quarter Financial and Operating Results

Nov. 05, 2020

DENVER--(BUSINESS WIRE)--Nov. 05, 2020--Whiting Petroleum Corporation (NYSE: WLL) ("Whiting" or the "Company") today announced third quarter 2020 results.

Third Quarter 2020 Highlights

* Revenue was $184 million for the quarter ending September 30, 2020 * Net income was $278 million, or $7.30 per diluted share for the quarter ending September 30, 2020 * Adjusted EBITDAX was $100 million for the quarter ending September 30, 2020 (see further discussion regarding the presentation of adjusted EBITDAX in "About Non-GAAP Financial Measures" below) * Emerged from bankruptcy with a strong balance sheet and liquidity position

On September 1, 2020 (the "Emergence Date") the Company emerged from voluntary bankruptcy under Chapter 11 of the Bankruptcy Code. Beginning on the Emergence Date, the Company applied fresh start accounting, which resulted in a new basis of accounting, and became a new entity for financial reporting purposes. As a result of the application of fresh start accounting and the effects of the implementation of the Company's chapter 11 plan of reorganization, the consolidated financial statements after September 1, 2020 are not comparable with the consolidated financial statements on or prior to that date. References to "Successor" refer to the Whiting entity after emergence from bankruptcy on the Emergence Date. References to "Predecessor" refer to the Whiting entity prior to emergence from bankruptcy. References to "Successor Period" refer to the period from September 1, 2020 through September 30, 2020. References to "Current Predecessor Quarter" and "Current Predecessor YTD Period" refer to the periods from July 1, 2020 through August 31, 2020 and January 1, 2020 through August 31, 2020, respectively. References to "Prior Predecessor Quarter" and "Prior Predecessor YTD Period" refer to the three and nine months ended September 30, 2019, respectively.

Although GAAP requires that we report on results for the Successor Period and the Current Predecessor Quarter and Current Predecessor YTD Period separately, our operating results are discussed below for the three and nine months ended September 30, 2020 by combining the results of the applicable Predecessor and Successor periods in order to provide the most meaningful comparison of our current results to prior periods. Accordingly, references to "Combined Current Quarter" and "Combined Current YTD Period" refer to the three and nine months ended September 30, 2020, respectively.

Revenue for the Combined Current Quarter decreased $192 million to $184 million when comparing to the quarter ending September 30, 2019. A decrease in total production accounted for approximately $111 million of the change in revenue and decreases in commodity prices realized accounted for approximately $81 million of the change in revenue between periods.

Net income for the Combined Current Quarter was $278 million, or $7.30 per share, as compared to a net loss of $19 million, or $0.21 per share, in the quarter ended September 30, 2019. Adjusted net loss for the Combined Current Quarter was $13 million or $0.34 per share.

Adjusted EBITDAX for the Combined Current Quarter was $100 million compared to $236 million for the quarter ended September 30, 2019.



Non-GAAP Predecessor

Combined Three Three Months Months Ended Ended September 30, September 30, 2020 2019

Selected operating statistics:

Production

Oil (MBbl) 5,209 7,441

NGLs (MBbl) 1,641 1,830

Natural gas (MMcf) 10,737 12,536

Total production (MBOE) 8,639 11,361

Average prices

Oil (per Bbl):

Price received $ 34.05 $ 49.71

Effect of crude oil hedging ^(1) 0.01 1.41

Realized price ^(3) $ 34.06 $ 51.12

Weighted average NYMEX price (per Bbl) ^(4) $ 40.92 $ 56.43

NGLs (per Bbl):

Realized price $ 6.48 $ 3.07

Natural gas (per Mcf):

Price received $ (0.41 ) $ 0.03

Effect of natural gas hedging ^(2) 0.03 -

Realized price $ (0.38 ) $ 0.03

Weighted average NYMEX price (per MMBtu) ^(4) $ 1.90 $ 2.29

Selected operating metrics

Sales price, net of hedging ($ per BOE) $ 21.29 $ 34.01

Lease operating ($ per BOE) 5.92 7.51

Transportation, gathering, compression and 0.72 0.98 other ($ per BOE)

Depreciation, depletion and amortization ($ 10.57 18.58 per BOE)

General and administrative ($ per BOE) 3.11 2.63

Production and ad valorem taxes (% of sales 9 % 9 %revenue)

_________________________________(1)

Whiting received $0.04 million and $10 million in pre-tax cash settlements on crude oil hedges during the three months ended September 30, 2020 and 2019, respectively. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" later in this release.(2)

Whiting received $0.3 million in pre-tax cash settlements on natural gas hedges during the three months ended September 30, 2020. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" later in this release.(3)

Whiting's realized prices were reduced by $2.38 per Bbl during the three months ended September 30, 2019 due deficiency payments under a contract in our Redtail field. This contract ended in April 2020.(4)

Average NYMEX prices weighted for monthly production volumes. Liquidity

Since emergence, the Company paid down approximately $25 million on its revolver. As of September 30, 2020, the Company had $400 million outstanding on its revolver and $14 million in cash resulting in total liquidity of $364 million. Whiting expects to fund its operations fully within operating cash flow through at least 2021.

Commodity Price Hedging

Whiting uses commodity hedges in order to reduce the effects of commodity price volatility and to adhere to the requirements of its credit facility. As of October 30, 2020, the Company has approximately 1.9 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2020, approximately 8.8 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2021 and approximately 3.5 million Bbls of oil hedged at a weighted-average floor price of approximately $38 per Bbl in 2022. Additionally, the Company has approximately 2.2 billion British thermal units ("Bbtu") of natural gas hedged at a weighted-average floor price of $2.36 per million British thermal units ("MMbtu") in 2020, approximately 23.5 Bbtu of natural gas hedged at a weighted-average floor price of $2.65 per MMbtu in 2021 and approximately 12.1 Bbtu of natural gas hedged at a weighted-average floor price of $2.38 per MMbtu in 2022. These floor prices are the weighted-average of swaps and the floors of collared transactions.

G & A

G&A expenses decreased to $27 million in the Combined Current Quarter, which includes $15 million of specific costs related to restructuring. This compares to $28 million in the second quarter 2020 and $30 million in the third quarter 2019, which included $11 million and $8 million of non-recurring items, respectively.

Operations

During the second quarter, the Company filed for bankruptcy, at which time all operations were suspended, except for workover operations. This suspension of operations clearly resulted in a steep decline in production over the past two quarters. During the third quarter of 2020, total production averaged 93.9 thousand barrels of oil equivalent per day ("MBOE/d"), of which 60% was crude oil, a decrease of 5% from the second quarter of 2020. Production for the same period of 2019 was 123 MBOE/d.

During the third quarter the Company turned seven wells to production in the Williston Basin. In the fourth quarter of 2020, Whiting expects to turn five additional wells to production as well as commence completion operations on another five wells at year end that will impact 2021 production. The Company expects capital expenditures of $27 million during the fourth quarter, bringing full year capital expenditures to the midpoint of guidance. Due to the timing of wells put on production during the third and fourth quarters, combined with completion work being done near the end of the year, we anticipate fourth quarter production will decline from the third quarter.

LOE declined to $51 million in the Combined Current Quarter from $53 million in the second quarter of 2020. This 4% decrease is primarily due to the company's focus on saltwater disposal optimization, lower non-op spending and improved rental agreements. This also marked a 40% decrease from the same period in 2019. Whiting continues to focus on costs to improve margins during the current price environment.

Whiting has consistently outperformed the NDIC requirement for gas capture since the regulatory requirement began. In September, Whiting captured 96% of its gas and continues to explore new technologies to reduce overall emissions.

Outlook for Full-Year 2020

The following table provides guidance for the full-year 2020 based on current forecasts.

_________________________________^ Whiting received $0.04 million and $10 million in pre-tax cash settlements(1) on crude oil hedges during the three months ended September 30, 2020 and 2019, respectively. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" later in this release.^ Whiting received $0.3 million in pre-tax cash settlements on natural gas(2) hedges during the three months ended September 30, 2020. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" later in this release.^ Whiting's realized prices were reduced by $2.38 per Bbl during the three(3) months ended September 30, 2019 due deficiency payments under a contract in our Redtail field. This contract ended in April 2020.^(4) Average NYMEX prices weighted for monthly production volumes.

Liquidity

Since emergence, the Company paid down approximately $25 million on its revolver. As of September 30, 2020, the Company had $400 million outstanding on its revolver and $14 million in cash resulting in total liquidity of $364 million. Whiting expects to fund its operations fully within operating cash flow through at least 2021.

Commodity Price Hedging

Whiting uses commodity hedges in order to reduce the effects of commodity price volatility and to adhere to the requirements of its credit facility. As of October 30, 2020, the Company has approximately 1.9 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2020, approximately 8.8 million Bbls of oil hedged at a weighted-average floor price of approximately $39 per Bbl in 2021 and approximately 3.5 million Bbls of oil hedged at a weighted-average floor price of approximately $38 per Bbl in 2022. Additionally, the Company has approximately 2.2 billion British thermal units ("Bbtu") of natural gas hedged at a weighted-average floor price of $2.36 per million British thermal units ("MMbtu") in 2020, approximately 23.5 Bbtu of natural gas hedged at a weighted-average floor price of $2.65 per MMbtu in 2021 and approximately 12.1 Bbtu of natural gas hedged at a weighted-average floor price of $2.38 per MMbtu in 2022. These floor prices are the weighted-average of swaps and the floors of collared transactions.

G & A

G&A expenses decreased to $27 million in the Combined Current Quarter, which includes $15 million of specific costs related to restructuring. This compares to $28 million in the second quarter 2020 and $30 million in the third quarter 2019, which included $11 million and $8 million of non-recurring items, respectively.

Operations

During the second quarter, the Company filed for bankruptcy, at which time all operations were suspended, except for workover operations. This suspension of operations clearly resulted in a steep decline in production over the past two quarters. During the third quarter of 2020, total production averaged 93.9 thousand barrels of oil equivalent per day ("MBOE/d"), of which 60% was crude oil, a decrease of 5% from the second quarter of 2020. Production for the same period of 2019 was 123 MBOE/d.

During the third quarter the Company turned seven wells to production in the Williston Basin. In the fourth quarter of 2020, Whiting expects to turn five additional wells to production as well as commence completion operations on another five wells at year end that will impact 2021 production. The Company expects capital expenditures of $27 million during the fourth quarter, bringing full year capital expenditures to the midpoint of guidance. Due to the timing of wells put on production during the third and fourth quarters, combined with completion work being done near the end of the year, we anticipate fourth quarter production will decline from the third quarter.

LOE declined to $51 million in the Combined Current Quarter from $53 million in the second quarter of 2020. This 4% decrease is primarily due to the company's focus on saltwater disposal optimization, lower non-op spending and improved rental agreements. This also marked a 40% decrease from the same period in 2019. Whiting continues to focus on costs to improve margins during the current price environment.

Whiting has consistently outperformed the NDIC requirement for gas capture since the regulatory requirement began. In September, Whiting captured 96% of its gas and continues to explore new technologies to reduce overall emissions.

Outlook for Full-Year 2020

The following table provides guidance for the full-year 2020 based on current forecasts.



Full-Year Guidance

2020

Production (MBOE/d) 98 - 99

Percent Oil 60%

Capital Expenditures (MM) $ 213 - $ 218

Lease operating expense (MM) $ 238 - $ 242

Management Comment

Lynn A. Peterson, President and CEO of WLL commented, "The past quarter saw the Company complete its restructuring work and emerge from bankruptcy in September. The Whiting team remained extremely focused during the process and I commend all of our staff for their efforts."

Peterson added, "We are in a challenging and volatile commodity price environment and we will continue to prioritize cash flow generation. As we look ahead at consensus commodity prices in 2021, our goals will be 1) to maintain production levels near our 2020 exit rate, and 2) operate within internally generated cash flow, which in combination should produce an attractive free cash flow yield. We anticipate holding 2021 spending levels in the same range as our 2020 capital expenditures to achieve these goals. We believe this strategy will create value for the Company's stakeholders while always operating in a safe environment."

Conference Call

WLL will host a conference call on Friday, November 6, 2020 at 11:00 a.m. Eastern time (9:00 a.m. Mountain time) to discuss the results. The call will be conducted by President and CEO Lynn A. Peterson, CFO James Henderson, COO Charles J. Rimer and IR Manager Brandon Day. A Q&A session will immediately follow the discussion of the results for the quarter.

To participate in this call please dial:Domestic Dial-in Number: (877) 328-5506 International Dial-in Number: (412) 317-5422 Webcast URL https://dpregister.com/sreg/10149456/dc153f7610

Replay Information:Conference ID #: 10149456 Replay Dial-In (Toll Free US & Canada): (877) 344-7529 (U.S.), (855) 669-9658 (Canada) Replay Dial-In (International): (412) 317-0088 Expiration Date: Friday, November 13, 2020

Selected Operating and Financial Statistics



Successor Predecessor Non-GAAP Predecessor

Combined Month Nine Nine Months Ended Eight Months Months Ended September Ended August Ended September 30, 2020 31, 2020 September 30, 30, 2019 2020

Selected operating statistics:

Production

Oil (MBbl) 1,746 15,273 17,020 22,435

NGLs (MBbl) 559 4,522 5,081 5,709

Natural gas (MMcf) 3,631 29,667 33,299 38,167

Total production (MBOE) 2,910 24,740 27,650 34,506

Average prices

Oil (per Bbl):

Price received $ 34.58 $ 28.86 $ 29.45 $ 50.51

Effect of crude oil 0.28 3.00 2.72 0.66 hedging ^(1)

Realized price ^(3) $ 34.86 $ 31.86 $ 32.17 $ 51.17

Weighted average NYMEX $ 39.63 $ 38.23 $ 38.37 $ 56.99 price (per Bbl) ^(4)

NGLs (per Bbl):

Realized price $ 3.19 $ 4.45 $ 4.31 $ 6.09

Natural gas (per Mcf):

Price received $ (0.30 ) $ (0.06 ) $ (0.09 ) $ 0.62

Effect of natural gas 0.15 (0.01 ) 0.01 - hedging ^(2)

Realized price $ (0.15 ) $ (0.07 ) $ (0.08 ) $ 0.62

Weighted average NYMEX $ 2.24 $ 1.76 $ 1.81 $ 2.62 price (per MMBtu) ^(4)

Selected operating metrics

Sales price, net of $ 21.34 $ 20.39 $ 20.49 $ 34.96 hedging ($ per BOE)

Lease operating ($ per 6.37 6.40 6.39 7.43 BOE)

Transportation,gathering, compression 0.68 0.90 0.88 0.93 and other ($ per BOE)

Depreciation, depletionand amortization ($ per 6.91 13.69 12.98 17.74 BOE)

General andadministrative ($ per 3.55 3.71 3.69 2.82 BOE)

Production and advalorem taxes (% of 10 % 9 % 9 % 9 %sales revenue)

_________________________________(1)

Whiting received $46 million and $15 million in pre-tax cash settlements on crude oil hedges during the nine months ended September 30, 2020 and 2019, respectively. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" earlier in this release.(2)

Whiting received $0.3 million in pre-tax cash settlements on natural gas hedges during the nine months ended September 30, 2020. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" earlier in this release.(3)

Whiting's realized prices were reduced by $1.42 and $2.05 per Bbl during the nine months ended September 30, 2020 and 2019, respectively, due to the Redtail deficiency payments. This contract ended in April 2020.(4)

Average NYMEX prices weighted for monthly production volumes._________________________________^ Whiting received $46 million and $15 million in pre-tax cash settlements(1) on crude oil hedges during the nine months ended September 30, 2020 and 2019, respectively. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" earlier in this release.^ Whiting received $0.3 million in pre-tax cash settlements on natural gas(2) hedges during the nine months ended September 30, 2020. A summary of Whiting's outstanding hedges is included in "Commodity Price Hedging" earlier in this release.^ Whiting's realized prices were reduced by $1.42 and $2.05 per Bbl during(3) the nine months ended September 30, 2020 and 2019, respectively, due to the Redtail deficiency payments. This contract ended in April 2020.^(4) Average NYMEX prices weighted for monthly production volumes.

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Two Months Ended August 31, 2020

Combined Three Months Ended September 30, 2020

Three Months Ended September 30, 2019

Selected financial data:

(In thousands, except per share data)

Total operating revenues

$

61,084

$

122,558

$

183,642

$

375,891

Total operating expenses

30,877

188,471

219,348

351,253

Total other (income) expense, net

2,122

(247,992

)

(245,870

)

43,705

Net income (loss)

40,270

237,425

277,695

(19,067

)

Per basic share (1)

1.06

2.60

7.30

(0.21

)

Per diluted share (1)

1.06

2.60

7.30

(0.21

)

Adjusted net income (loss) (2)

8,250

(21,130

)

(12,880

)

(35,148

)

Per basic share (1)

0.22

(0.23

)

(0.34

)

(0.38

)

Per diluted share (1)

0.22

(0.23

)

(0.34

)

(0.38

)

Adjusted EBITDAX (2)

34,689

64,838

99,527

235,663



Successor Predecessor Non-GAAP Predecessor

Combined Three Month Two Months Three Months Months Ended Ended August Ended Ended September 31, 2020 September September 30, 2020 30, 30, 2020 2019

Selected financial data:

(In thousands, except per share data)

Total operating revenues $ 61,084 $ 122,558 $ 183,642 $ 375,891

Total operating expenses 30,877 188,471 219,348 351,253

Total other (income) 2,122 (247,992 ) (245,870 ) 43,705 expense, net

Net income (loss) 40,270 237,425 277,695 (19,067 )

Per basic share^ (1) 1.06 2.60 7.30 (0.21 )

Per diluted share ^(1) 1.06 2.60 7.30 (0.21 )

Adjusted net income 8,250 (21,130 ) (12,880 ) (35,148 )(loss)^ (2)

Per basic share ^(1) 0.22 (0.23 ) (0.34 ) (0.38 )

Per diluted share ^(1) 0.22 (0.23 ) (0.34 ) (0.38 )

Adjusted EBITDAX ^(2) 34,689 64,838 99,527 235,663

_________________________________(1)

For the combined three months ended September 30, 2020, the Company used the Successor's basic and diluted weighted average share count to calculate per share amounts.(2)

Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release._________________________________^ For the combined three months ended September 30, 2020, the Company used(1) the Successor's basic and diluted weighted average share count to calculate per share amounts.^ Reconciliations of net income (loss) to adjusted net income (loss) and(2) adjusted EBITDAX are included later in this news release.

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Eight Months Ended August 31, 2020

Combined Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

Selected financial data:

(In thousands, except per share data)

Total operating revenues

$

61,084

$

459,004

$

520,088

$

1,191,644

Total operating expenses

30,877

4,651,298

4,682,175

1,147,122

Total other (income) expense, net

2,122

(170,459

)

(168,337

)

139,574

Net income (loss)

40,270

(3,965,461

)

(3,925,191

)

(93,679

)

Per basic share (1)

1.06

(43.37

)

(103.16

)

(1.03

)

Per diluted share (1)

1.06

(43.37

)

(103.16

)

(1.03

)

Adjusted net income (loss) (2)

8,250

(209,656

)

(201,406

)

(57,821

)

Per basic share (1)

0.22

(2.29

)

(5.29

)

(0.63

)

Per diluted share (1)

0.22

(2.29

)

(5.29

)

(0.63

)

Adjusted EBITDAX (2)

34,689

227,580

262,269

738,176



Successor Predecessor Non-GAAP Predecessor

Month Combined Nine Months Ended Eight Months Nine Months Ended September Ended August Ended September 30, 30, 2020 31, 2020 September 30, 2019 2020

Selected financial data:

(In thousands,except per share data)

Total operating $ 61,084 $ 459,004 $ 520,088 $ 1,191,644 revenues

Total operating 30,877 4,651,298 4,682,175 1,147,122 expenses

Total other(income) 2,122 (170,459 ) (168,337 ) 139,574 expense, net

Net income 40,270 (3,965,461 ) (3,925,191 ) (93,679 )(loss)

Per basic share 1.06 (43.37 ) (103.16 ) (1.03 )^ (1)

Per diluted 1.06 (43.37 ) (103.16 ) (1.03 )share^ (1)

Adjusted netincome (loss)^ 8,250 (209,656 ) (201,406 ) (57,821 )(2)

Per basic share 0.22 (2.29 ) (5.29 ) (0.63 )^ (1)

Per diluted 0.22 (2.29 ) (5.29 ) (0.63 )share^ (1)

Adjusted 34,689 227,580 262,269 738,176 EBITDAX ^(2)

_________________________________(1)

For the combined nine months ended September 30, 2020, the Company used the Successor's basic and diluted weighted average share count to calculate per share amounts.(2)

Reconciliations of net income (loss) to adjusted net income (loss) and adjusted EBITDAX are included later in this news release. Third Quarter and First Nine Month 2020 Costs and Margins

A summary of cash revenues and cash costs on a per BOE basis is as follows:

_________________________________^ For the combined nine months ended September 30, 2020, the Company used(1) the Successor's basic and diluted weighted average share count to calculate per share amounts.^ Reconciliations of net income (loss) to adjusted net income (loss) and(2) adjusted EBITDAX are included later in this news release.

Third Quarter and First Nine Month 2020 Costs and Margins

A summary of cash revenues and cash costs on a per BOE basis is as follows:



Successor Predecessor Non-GAAP Predecessor

Combined Three Month Two Months Three Months Ended Ended Months Ended September August 31, Ended September 30, 2020 2020 September 30, 30, 2019 2020

Sales price, net of hedging $ 20.99 $ 21.39 $ 21.26 $ 34.01

Gain (loss) on hedging 0.35 (0.13 ) 0.03 -activities

Lease operating expense 6.37 5.70 5.92 7.51

Transportation, gathering, 0.68 0.74 0.72 0.98compression and other

Production and ad valorem 2.03 1.81 1.88 3.10tax

Cash general & 3.55 2.74 3.02 2.94administrative^

Exploration 1.45 0.47 0.80 0.73

Cash interest expense 0.60 1.33 1.09 3.56

Cash income tax expense 0.80 - 0.27 -

Cash reorganization items - 5.32 3.53 -

$ 5.86 $ 3.15 $ 4.06 $ 15.19

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Eight Months Ended August 31, 2020

Combined Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

Sales price, net of hedging

$

20.99

$

18.55

$

18.81

$

34.96

Gain (loss) on hedging activities

0.35

1.84

1.68

-

Lease operating expense

6.37

6.40

6.39

7.43

Transportation, gathering, compression and other

0.68

0.90

0.88

0.93

Production and ad valorem tax

2.03

1.67

1.70

2.98

Cash general & administrative

3.55

3.56

3.56

2.68

Exploration

1.45

0.93

0.98

0.82

Cash interest expense

0.60

2.41

2.22

3.52

Cash income tax expense

0.80

0.11

0.18

-

Cash reorganization items

-

2.31

2.07

-

$

5.86

$

2.10

$

2.51

$

16.60

Selected Financial Data

For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation's Quarterly Report on Form 10?Q for the quarter ended September 30, 2020 to be filed with the Securities and Exchange Commission.



Successor Predecessor Non-GAAP Predecessor

Combined Month Eight Nine Nine Months Ended Months Months Ended September Ended Ended September 30, 2020 August 31, September 30, 2020 30, 2019 2020

Sales price, net of $ 20.99 $ 18.55 $ 18.81 $ 34.96hedging

Gain (loss) on hedging 0.35 1.84 1.68 -activities

Lease operating expense 6.37 6.40 6.39 7.43

Transportation, gathering, 0.68 0.90 0.88 0.93compression and other

Production and ad valorem 2.03 1.67 1.70 2.98tax

Cash general & 3.55 3.56 3.56 2.68administrative^

Exploration 1.45 0.93 0.98 0.82

Cash interest expense 0.60 2.41 2.22 3.52

Cash income tax expense 0.80 0.11 0.18 -

Cash reorganization items - 2.31 2.07 -

$ 5.86 $ 2.10 $ 2.51 $ 16.60

Selected Financial Data

For further information and discussion on the selected financial data below, please refer to Whiting Petroleum Corporation's Quarterly Report on Form 10?Q for the quarter ended September 30, 2020 to be filed with the Securities and Exchange Commission.

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)



Successor Predecessor

September 30, December 31,

2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 13,702 $ 8,652

Restricted cash 13,233 -

Accounts receivable trade, net 128,577 308,249

Prepaid expenses and other 22,056 14,082

Total current assets 177,568 330,983

Property and equipment:

Oil and gas properties, successful efforts 1,829,472 12,812,007 method

Other property and equipment 72,856 178,689

Total property and equipment 1,902,328 12,990,696

Less accumulated depreciation, depletion and (19,447 ) (5,735,239 )amortization

Total property and equipment, net 1,882,881 7,255,457

Other long-term assets 38,007 50,281

TOTAL ASSETS $ 2,098,456 $ 7,636,721

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

Successor

Predecessor

September 30,

December 31,

2020

2019

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable trade

$

44,171

$

80,100

Revenues and royalties payable

146,767

202,010

Accrued capital expenditures

14,809

64,263

Accrued liabilities and other

63,987

85,007

Accrued lease operating expenses

23,757

38,262

Accrued interest

1,432

53,928

Taxes payable

16,985

26,844

Total current liabilities

311,908

550,414

Long-term debt

400,328

2,799,885

Asset retirement obligations

119,262

131,208

Operating lease obligations

17,749

31,722

Deferred income taxes

-

73,593

Other long-term liabilities

19,723

24,928

Total liabilities

868,970

3,611,750

Commitments and contingencies

Equity:

Predecessor common stock, $0.001 par value, 225,000,000 shares authorized; 91,743,571 issued and 91,326,469 outstanding as of December 31, 2019

-

92

Successor common stock, $0.001 par value, 500,000,000 shares authorized; 38,051,210 issued and outstanding as of September 30, 2020

38

-

Additional paid-in capital

1,189,178

6,409,991

Accumulated earnings (deficit)

40,270

(2,385,112

)

Total equity

1,229,486

4,024,971

TOTAL LIABILITIES AND EQUITY

$

2,098,456

$

7,636,721

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands)

Successor Predecessor

September December 31, 30,

2020 2019

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable trade $ 44,171 $ 80,100

Revenues and royalties payable 146,767 202,010

Accrued capital expenditures 14,809 64,263

Accrued liabilities and other 63,987 85,007

Accrued lease operating expenses 23,757 38,262

Accrued interest 1,432 53,928

Taxes payable 16,985 26,844

Total current liabilities 311,908 550,414

Long-term debt 400,328 2,799,885

Asset retirement obligations 119,262 131,208

Operating lease obligations 17,749 31,722

Deferred income taxes - 73,593

Other long-term liabilities 19,723 24,928

Total liabilities 868,970 3,611,750

Commitments and contingencies

Equity:

Predecessor common stock, $0.001 par value,225,000,000 shares authorized; 91,743,571 - 92 issued and 91,326,469 outstanding as ofDecember 31, 2019

Successor common stock, $0.001 par value,500,000,000 shares authorized; 38,051,210 38 - issued and outstanding as of September 30,2020

Additional paid-in capital 1,189,178 6,409,991

Accumulated earnings (deficit) 40,270 (2,385,112 )

Total equity 1,229,486 4,024,971

TOTAL LIABILITIES AND EQUITY $ 2,098,456 $ 7,636,721

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Two Months Ended August 31, 2020

Combined Three Months Ended September 30, 2020

Three Months Ended September 30, 2019

OPERATING REVENUES

Oil, NGL and natural gas sales

$

61,084

$

122,558

$

183,642

$

375,891

OPERATING EXPENSES

Lease operating expenses

18,526

32,646

51,172

85,320

Transportation, gathering, compression and other

1,980

4,259

6,239

11,176

Production and ad valorem taxes

5,908

10,362

16,270

35,220

Depreciation, depletion and amortization

20,110

71,240

91,350

211,025

Exploration and impairment

4,207

10,217

14,424

10,890

General and administrative

10,345

16,513

26,858

29,890

Derivative (gain) loss, net

(30,594

)

43,125

12,531

(30,597

)

Loss on sale of properties

395

1,280

1,675

595

Amortization of deferred gain on sale

-

(1,171

)

(1,171

)

(2,266

)

Total operating expenses

30,877

188,471

219,348

351,253

INCOME FROM OPERATIONS

30,207

(65,913

)

(35,706

)

24,638

OTHER INCOME (EXPENSE)

Interest expense

(2,128

)

(11,379

)

(13,507

)

(48,447

)

Gain (loss) on extinguishment of debt

-

-

-

4,598

Interest income and other

6

139

145

144

Reorganization items

-

259,232

259,232

-

Total other income (expense)

(2,122

)

247,992

245,870

(43,705

)

INCOME (LOSS) BEFORE INCOME TAXES

28,085

182,079

210,164

(19,067

)

INCOME TAX EXPENSE (BENEFIT)

Current

2,316

-

2,316

-

Deferred

(14,501

)

(55,346

)

(69,847

)

-

Total income tax benefit

(12,185

)

(55,346

)

(67,531

)

-

NET INCOME (LOSS)

$

40,270

$

237,425

$

277,695

$

(19,067

)

INCOME (LOSS) PER COMMON SHARE

Basic

$

1.06

$

2.60

$

7.30

$

(0.21

)

Diluted

$

1.06

$

2.60

$

7.30

$

(0.21

)

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

38,051

91,464

38,051

91,299

Diluted

38,051

91,464

38,051

91,299

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)



Successor Predecessor Non-GAAP Predecessor

Combined Three Month Two Months Three Months Ended Ended Months Ended September August 31, Ended September 30, 2020 September 30, 2020 30, 2019 2020

OPERATING REVENUES

Oil, NGL and natural $ 61,084 $ 122,558 $ 183,642 $ 375,891 gas sales

OPERATING EXPENSES

Lease operating 18,526 32,646 51,172 85,320 expenses

Transportation,gathering, 1,980 4,259 6,239 11,176 compression and other

Production and ad 5,908 10,362 16,270 35,220 valorem taxes

Depreciation,depletion and 20,110 71,240 91,350 211,025 amortization

Exploration and 4,207 10,217 14,424 10,890 impairment

General and 10,345 16,513 26,858 29,890 administrative

Derivative (gain) (30,594 ) 43,125 12,531 (30,597 )loss, net

Loss on sale of 395 1,280 1,675 595 properties

Amortization of - (1,171 ) (1,171 ) (2,266 )deferred gain on sale

Total operating 30,877 188,471 219,348 351,253 expenses

INCOME FROM 30,207 (65,913 ) (35,706 ) 24,638 OPERATIONS

OTHER INCOME (EXPENSE)

Interest expense (2,128 ) (11,379 ) (13,507 ) (48,447 )

Gain (loss) onextinguishment of - - - 4,598 debt

Interest income and 6 139 145 144 other

Reorganization items - 259,232 259,232 -

Total other income (2,122 ) 247,992 245,870 (43,705 )(expense)

INCOME (LOSS) BEFORE 28,085 182,079 210,164 (19,067 )INCOME TAXES

INCOME TAX EXPENSE (BENEFIT)

Current 2,316 - 2,316 -

Deferred (14,501 ) (55,346 ) (69,847 ) -

Total income tax (12,185 ) (55,346 ) (67,531 ) - benefit

NET INCOME (LOSS) $ 40,270 $ 237,425 $ 277,695 $ (19,067 )

INCOME (LOSS) PER COMMON SHARE

Basic $ 1.06 $ 2.60 $ 7.30 $ (0.21 )

Diluted $ 1.06 $ 2.60 $ 7.30 $ (0.21 )

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic 38,051 91,464 38,051 91,299

Diluted 38,051 91,464 38,051 91,299

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Eight Months Ended August 31, 2020

Combined Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

OPERATING REVENUES

Oil, NGL and natural gas sales

$

61,084

$

459,004

$

520,088

$

1,191,644

OPERATING EXPENSES

Lease operating expenses

18,526

158,228

176,754

256,384

Transportation, gathering, compression and other

1,980

22,266

24,246

32,145

Production and ad valorem taxes

5,908

41,204

47,112

102,796

Depreciation, depletion and amortization

20,110

338,757

358,867

612,166

Exploration and impairment

4,207

4,184,830

4,189,037

44,045

General and administrative

10,345

91,816

102,161

97,437

Derivative (gain) loss, net

(30,594

)

(181,614

)

(212,208

)

7,431

Loss on sale of properties

395

927

1,322

1,681

Amortization of deferred gain on sale

-

(5,116

)

(5,116

)

(6,963

)

Total operating expenses

30,877

4,651,298

4,682,175

1,147,122

INCOME FROM OPERATIONS

30,207

(4,192,294

)

(4,162,087

)

44,522

OTHER INCOME (EXPENSE)

Interest expense

(2,128

)

(73,054

)

(75,182

)

(145,274

)

Gain (loss) on extinguishment of debt

-

25,883

25,883

4,598

Interest income and other

6

211

217

1,102

Reorganization items

-

217,419

217,419

-

Total other income (expense)

(2,122

)

170,459

168,337

(139,574

)

INCOME (LOSS) BEFORE INCOME TAXES

28,085

(4,021,835

)

(3,993,750

)

(95,052

)

INCOME TAX EXPENSE (BENEFIT)

Current

2,316

2,718

5,034

-

Deferred

(14,501

)

(59,092

)

(73,593

)

(1,373

)

Total income tax benefit

(12,185

)

(56,374

)

(68,559

)

(1,373

)

NET INCOME (LOSS)

$

40,270

$

(3,965,461

)

$

(3,925,191

)

$

(93,679

)

INCOME (LOSS) PER COMMON SHARE

Basic

$

1.06

$

(43.37

)

$

(103.16

)

$

(1.03

)

Diluted

$

1.06

$

(43.37

)

$

(103.16

)

$

(1.03

)

WEIGHTED AVERAGE SHARES OUTSTANDING

Basic

38,051

91,423

38,051

91,274

Diluted

38,051

91,423

38,051

91,274

WHITING PETROLEUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except per share data)



Successor Predecessor Non-GAAP Predecessor

Month Eight Months Combined Nine Months Ended Ended Nine Months Ended September August 31, Ended September 30, 30, 2020 September 30, 2019 2020 2020

OPERATING REVENUES

Oil, NGL andnatural gas $ 61,084 $ 459,004 $ 520,088 $ 1,191,644 sales

OPERATING EXPENSES

Lease operating 18,526 158,228 176,754 256,384 expenses

Transportation,gathering, 1,980 22,266 24,246 32,145 compression andother

Production andad valorem 5,908 41,204 47,112 102,796 taxes

Depreciation,depletion and 20,110 338,757 358,867 612,166 amortization

Exploration and 4,207 4,184,830 4,189,037 44,045 impairment

General and 10,345 91,816 102,161 97,437 administrative

Derivative(gain) loss, (30,594 ) (181,614 ) (212,208 ) 7,431 net

Loss on sale of 395 927 1,322 1,681 properties

Amortization ofdeferred gain - (5,116 ) (5,116 ) (6,963 )on sale

Total operating 30,877 4,651,298 4,682,175 1,147,122 expenses

INCOME FROM 30,207 (4,192,294 ) (4,162,087 ) 44,522 OPERATIONS

OTHER INCOME (EXPENSE)

Interest (2,128 ) (73,054 ) (75,182 ) (145,274 )expense

Gain (loss) onextinguishment - 25,883 25,883 4,598 of debt

Interest income 6 211 217 1,102 and other

Reorganization - 217,419 217,419 - items

Total otherincome (2,122 ) 170,459 168,337 (139,574 )(expense)

INCOME (LOSS)BEFORE INCOME 28,085 (4,021,835 ) (3,993,750 ) (95,052 )TAXES

INCOME TAXEXPENSE (BENEFIT)

Current 2,316 2,718 5,034 -

Deferred (14,501 ) (59,092 ) (73,593 ) (1,373 )

Total income (12,185 ) (56,374 ) (68,559 ) (1,373 )tax benefit

NET INCOME $ 40,270 $ (3,965,461 ) $ (3,925,191 ) $ (93,679 )(LOSS)

INCOME (LOSS)PER COMMON SHARE

Basic $ 1.06 $ (43.37 ) $ (103.16 ) $ (1.03 )

Diluted $ 1.06 $ (43.37 ) $ (103.16 ) $ (1.03 )

WEIGHTEDAVERAGE SHARES OUTSTANDING

Basic 38,051 91,423 38,051 91,274

Diluted 38,051 91,423 38,051 91,274

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

(in thousands, except per share data)

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Two Months Ended August 31, 2020

Combined Three Months Ended September 30, 2020

Three Months Ended September 30, 2019

Net income (loss)

$

40,270

$

237,425

$

277,695

$

(19,067

)

Adjustments:

Amortization of deferred gain on sale

-

(1,171

)

(1,171

)

(2,266

)

Loss on sale of properties

395

1,280

1,675

595

Impairment expense

-

7,516

7,516

2,550

(Gain) loss on extinguishment of debt

-

-

-

(4,598

)

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

(30,594

)

43,125

12,531

(30,597

)

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

1,031

(731

)

300

10,454

Reorganization items, net

-

(259,232

)

(259,232

)

-

Restructuring and other one-time costs (1)

9,333

6,004

15,337

7,781

Tax impact of basis difference for Whiting Canadian Holding Company ULC

(12,185

)

(55,346

)

(67,531

)

-

Adjusted net income (loss) (2)

$

8,250

$

(21,130

)

$

(12,880

)

$

(35,148

)

Adjusted net income (loss) per share, basic (3)

$

0.22

$

(0.23

)

$

(0.34

)

$

(0.38

)

Adjusted net income (loss) per share, diluted (3)

$

0.22

$

(0.23

)

$

(0.34

)

$

(0.38

)

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

(in thousands, except per share data)



Successor Predecessor Non-GAAP Predecessor

Combined Three Month Ended Two Months Three Months Months September Ended Ended Ended 30, August 31, September September 2020 2020 30, 30, 2020 2019

Net income (loss) $ 40,270 $ 237,425 $ 277,695 $ (19,067 )

Adjustments:

Amortization ofdeferred gain on - (1,171 ) (1,171 ) (2,266 )sale

Loss on sale of 395 1,280 1,675 595 properties

Impairment expense - 7,516 7,516 2,550

(Gain) loss onextinguishment of - - - (4,598 )debt

Total measure ofderivative (gain) (30,594 ) 43,125 12,531 (30,597 )loss reported underU.S. GAAP

Total net cashsettlementsreceived (paid) on 1,031 (731 ) 300 10,454 commodityderivatives duringthe period

Reorganization - (259,232 ) (259,232 ) - items, net

Restructuring andother one-time 9,333 6,004 15,337 7,781 costs ^(1)

Tax impact of basisdifference for (12,185 ) (55,346 ) (67,531 ) - Whiting CanadianHolding Company ULC

Adjusted net income $ 8,250 $ (21,130 ) $ (12,880 ) $ (35,148 )(loss) ^(2)

Adjusted net income(loss) per share, $ 0.22 $ (0.23 ) $ (0.34 ) $ (0.38 )basic ^(3)

Adjusted net income(loss) per share, $ 0.22 $ (0.23 ) $ (0.34 ) $ (0.38 )diluted ^(3)

_________________________________(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020 and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy.(2)

Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. 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) 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) and adjusted net income (loss) per share 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.(3)

For the combined three months ended September 30, 2020, the Company used the Successor's basic and diluted weighted average share count to calculate per share amounts._________________________________ Includes severance and restructuring charges incurred during two separate^ company restructurings in August 2019 and September 2020, cash retention(1) incentives paid to Predecessor executives and directors in 2020 and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. 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) is widely used by professional research analysts and others in valuation,^ comparison and investment recommendations of companies in the oil and gas(2) exploration and production industry, and many investors use the published research of industry research analysts in making investment decisions. Adjusted net income (loss) and adjusted net income (loss) per share 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.^ For the combined three months ended September 30, 2020, the Company used(3) the Successor's basic and diluted weighted average share count to calculate per share amounts.WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

(in thousands, except per share data)

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Eight Months Ended August 31, 2020

Combined Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

Net income (loss)

$

40,270

$

(3,965,461

)

$

(3,925,191

)

$

(93,679

)

Adjustments:

Amortization of deferred gain on sale

-

(5,116

)

(5,116

)

(6,963

)

Loss on sale of properties

395

927

1,322

1,681

Impairment expense

-

4,161,885

4,161,885

15,729

(Gain) loss on extinguishment of debt

-

(25,883

)

(25,883

)

(4,598

)

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

(30,594

)

(181,614

)

(212,208

)

7,431

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

1,031

45,483

46,514

14,797

Reorganization items, net

-

(217,419

)

(217,419

)

-

Restructuring and other one-time costs (1)

9,333

32,888

42,221

7,781

Tax impact of basis difference for Whiting Canadian Holding Company ULC

(12,185

)

(55,346

)

(67,531

)

-

Adjusted net income (loss) (2)

$

8,250

$

(209,656

)

$

(201,406

)

$

(57,821

)

Adjusted net income (loss) per share, basic (3)

$

0.22

$

(2.29

)

$

(5.29

)

$

(0.63

)

Adjusted net income (loss) per share, diluted (3)

$

0.22

$

(2.29

)

$

(5.29

)

$

(0.63

)

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

(in thousands, except per share data)



Successor Predecessor Non-GAAP Predecessor

Month Ended Eight Months Combined Nine Months September Ended Nine Months Ended 30, August 31, Ended September 2020 2020 September 30, 30, 2020 2019

Net income $ 40,270 $ (3,965,461 ) $ (3,925,191 ) $ (93,679 )(loss)

Adjustments:

Amortization ofdeferred gain - (5,116 ) (5,116 ) (6,963 )on sale

Loss on sale of 395 927 1,322 1,681 properties

Impairment - 4,161,885 4,161,885 15,729 expense

(Gain) loss onextinguishment - (25,883 ) (25,883 ) (4,598 )of debt

Total measureof derivative(gain) loss (30,594 ) (181,614 ) (212,208 ) 7,431 reported underU.S. GAAP

Total net cashsettlementsreceived (paid)on commodity 1,031 45,483 46,514 14,797 derivativesduring theperiod

Reorganization - (217,419 ) (217,419 ) - items, net

Restructuringand other 9,333 32,888 42,221 7,781 one-time costs^(1)

Tax impact ofbasisdifference forWhiting (12,185 ) (55,346 ) (67,531 ) - CanadianHolding CompanyULC

Adjusted netincome (loss) ^ $ 8,250 $ (209,656 ) $ (201,406 ) $ (57,821 )(2)

Adjusted netincome (loss) $ 0.22 $ (2.29 ) $ (5.29 ) $ (0.63 )per share,basic ^(3)

Adjusted netincome (loss) $ 0.22 $ (2.29 ) $ (5.29 ) $ (0.63 )per share,diluted ^(3)

_________________________________(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement.(2)

Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. 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) 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) and adjusted net income (loss) per share 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.(3)

For the combined nine months ended September 30, 2020, the Company used the Successor's basic and diluted weighted average share count to calculate per share amounts._________________________________ Includes severance and restructuring charges incurred during two separate^ company restructurings in August 2019 and September 2020, cash retention(1) incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement. Adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP measures. 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) is widely used by professional research analysts and others in valuation,^ comparison and investment recommendations of companies in the oil and gas(2) exploration and production industry, and many investors use the published research of industry research analysts in making investment decisions. Adjusted net income (loss) and adjusted net income (loss) per share 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.^ For the combined nine months ended September 30, 2020, the Company used(3) the Successor's basic and diluted weighted average share count to calculate per share amounts.WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

(in thousands)

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Two Months Ended August 31, 2020

Combined Three Months Ended September 30, 2020

Three Months Ended September 30, 2019

Net income (loss)

$

40,270

$

237,425

$

277,695

$

(19,067

)

Interest expense

2,128

11,379

13,507

48,447

Interest income

(6

)

(139

)

(145

)

-

Income tax expense (benefit)

(12,185

)

(55,346

)

(67,531

)

-

Depreciation, depletion and amortization

20,110

71,240

91,350

211,025

Amortization of deferred gain on sale

-

(1,171

)

(1,171

)

(2,266

)

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

(30,594

)

43,125

12,531

(30,597

)

Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs

1,031

(731

)

300

10,454

Non-cash stock-based compensation

-

787

787

(3,531

)

(Gain) loss on extinguishment of debt

-

-

-

(4,598

)

Loss on sale of properties

395

1,280

1,675

595

Reorganization items, net

-

(259,232

)

(259,232

)

-

Restructuring and other one-time costs (1)

9,333

6,004

15,337

14,311

Adjusted EBITDA (2)

30,482

54,621

85,103

224,773

Exploration and impairment expense

4,207

10,217

14,424

10,890

Adjusted EBITDAX (2)

$

34,689

$

64,838

$

99,527

$

235,663

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

(in thousands)



Successor Predecessor Non-GAAP Predecessor

Combined Three Month Ended Two Months Three Months Months September Ended Ended Ended 30, August 31, September September 2020 2020 30, 30, 2020 2019

Net income (loss) $ 40,270 $ 237,425 $ 277,695 $ (19,067 )

Interest expense 2,128 11,379 13,507 48,447

Interest income (6 ) (139 ) (145 ) -

Income tax expense (12,185 ) (55,346 ) (67,531 ) - (benefit)

Depreciation,depletion and 20,110 71,240 91,350 211,025 amortization

Amortization ofdeferred gain on - (1,171 ) (1,171 ) (2,266 )sale

Total measure ofderivative (gain) (30,594 ) 43,125 12,531 (30,597 )loss reported underU.S. GAAP

Total cashsettlementsreceived (paid) oncommodity 1,031 (731 ) 300 10,454 derivatives duringthe period, net ofpremiums/costs

Non-cashstock-based - 787 787 (3,531 )compensation

(Gain) loss onextinguishment of - - - (4,598 )debt

Loss on sale of 395 1,280 1,675 595 properties

Reorganization - (259,232 ) (259,232 ) - items, net

Restructuring andother one-time 9,333 6,004 15,337 14,311 costs ^(1)

Adjusted EBITDA ^ 30,482 54,621 85,103 224,773 (2)

Exploration and 4,207 10,217 14,424 10,890 impairment expense

Adjusted EBITDAX ^ $ 34,689 $ 64,838 $ 99,527 $ 235,663 (2)

_________________________________(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020 and directors and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in "non-cash stock-based compensation."(2)

Adjusted EBITDA and Adjusted EBITDAX 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 debt service, working capital requirements, acquisitions and exploration and development. Adjusted EBITDA and Adjusted EBITDAX 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._________________________________ Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention^ incentives paid to Predecessor executives and directors in 2020 and(1) directors and third-party advisory and legal fees incurred after emerging from chapter 11 bankruptcy. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in "non-cash stock-based compensation." Adjusted EBITDA and Adjusted EBITDAX 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 debt^ service, working capital requirements, acquisitions and exploration and(2) development. Adjusted EBITDA and Adjusted EBITDAX 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.WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

(in thousands)

Successor

Predecessor

Non-GAAP

Predecessor

Month Ended September 30, 2020

Eight Months Ended August 31, 2020

Combined Nine Months Ended September 30, 2020

Nine Months Ended September 30, 2019

Net income (loss)

$

40,270

$

(3,965,461

)

$

(3,925,191

)

$

(93,679

)

Interest expense

2,128

73,054

75,182

145,274

Interest income

(6

)

(211

)

(217

)

(2

)

Income tax expense (benefit)

(12,185

)

(56,374

)

(68,559

)

(1,373

)

Depreciation, depletion and amortization

20,110

338,757

358,867

612,166

Amortization of deferred gain on sale

-

(5,116

)

(5,116

)

(6,963

)

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

(30,594

)

(181,614

)

(212,208

)

7,431

Total cash settlements received (paid) on commodity derivatives during the period, net of premiums/costs

1,031

45,483

46,514

14,797

Non-cash stock-based compensation

-

3,719

3,719

5,086

(Gain) loss on extinguishment of debt

-

(25,883

)

(25,883

)

(4,598

)

Loss on sale of properties

395

927

1,322

1,681

Reorganization items, net

-

(217,419

)

(217,419

)

-

Restructuring and other one-time costs (1)

9,333

32,888

42,221

14,311

Adjusted EBITDA (2)

30,482

(3,957,250

)

(3,926,768

)

694,131

Exploration and impairment expense

4,207

4,184,830

4,189,037

44,045

Adjusted EBITDAX (2)

$

34,689

$

227,580

$

262,269

$

738,176

WHITING PETROLEUM CORPORATION

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Adjusted EBITDAX

(in thousands)



Successor Predecessor Non-GAAP Predecessor

Month Ended Eight Months Combined Nine Months September Ended Nine Months Ended 30, August 31, Ended September 2020 2020 September 30, 30, 2020 2019

Net income $ 40,270 $ (3,965,461 ) $ (3,925,191 ) $ (93,679 )(loss)

Interest 2,128 73,054 75,182 145,274 expense

Interest income (6 ) (211 ) (217 ) (2 )

Income taxexpense (12,185 ) (56,374 ) (68,559 ) (1,373 )(benefit)

Depreciation,depletion and 20,110 338,757 358,867 612,166 amortization

Amortization ofdeferred gain - (5,116 ) (5,116 ) (6,963 )on sale

Total measureof derivative(gain) loss (30,594 ) (181,614 ) (212,208 ) 7,431 reported underU.S. GAAP

Total cashsettlementsreceived (paid)on commodity 1,031 45,483 46,514 14,797 derivativesduring theperiod, net ofpremiums/costs

Non-cashstock-based - 3,719 3,719 5,086 compensation

(Gain) loss onextinguishment - (25,883 ) (25,883 ) (4,598 )of debt

Loss on sale of 395 927 1,322 1,681 properties

Reorganization - (217,419 ) (217,419 ) - items, net

Restructuringand other 9,333 32,888 42,221 14,311 one-time costs^(1)

Adjusted EBITDA 30,482 (3,957,250 ) (3,926,768 ) 694,131 ^(2)

Exploration andimpairment 4,207 4,184,830 4,189,037 44,045 expense

Adjusted $ 34,689 $ 227,580 $ 262,269 $ 738,176 EBITDAX ^(2)

_________________________________(1)

Includes severance and restructuring charges incurred during two separate company restructurings in August 2019 and September 2020, cash retention incentives paid to Predecessor executives and directors in 2020, third-party advisory and legal fees incurred prior to filing for and after emerging from chapter 11 bankruptcy and a litigation settlement. The restructuring charges for the three months ended September 30, 2019 exclude forfeitures of $7 million related to non-cash stock-based compensation which are reflected in "non-cash stock-based compensation."(2)

Adjusted EBITDA and Adjusted EBITDAX 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 debt service, working capital requirements, acquisitions and exploration and development. Adjusted EBITDA and Adjusted EBITDAX 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. About Whiting Petroleum Corporation

Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company engaged in the development, production and acquisition of crude oil, NGLs and natural gas primarily in the Rocky Mountains region of the United States. The Company's largest projects are in the Bakken and Three Forks plays in North Dakota and Montana and the Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.

Forward-Looking Statements

This news release contains statements that we believe to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we "expect," "intend," "plan," "estimate," "anticipate," "believe" or "should" or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to 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 our emergence from the chapter 11 bankruptcy; declines in, or extended periods of low oil, NGL or natural gas prices; our level of success in exploration, development and production activities; risks related to our level of indebtedness, our ability to comply with debt covenants, periodic redeterminations of the borrowing base under the Exit Credit Agreement and our ability to generate sufficient cash flows from operations to service our indebtedness; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations; negative impacts from outbreaks of communicable diseases, including the COVID-19 pandemic; our inability to access oil and gas markets due to market conditions or operational impediments, including any court rulings which may result in the inability to transport oil on the Dakota Access Pipeline; negative impacts from litigation and legal proceedings, including ongoing claims in connection with the chapter 11 bankruptcy; the impact of negative shifts in investor sentiment towards the oil and gas industry; impacts resulting from the allocation of resources among our strategic opportunities; the geographic concentration of our operations; impacts to financial statements as a result of impairment write-downs and other cash and noncash charges; federal and state initiatives relating to the regulation of hydraulic fracturing and air emissions; revisions to reserve estimates as a result of changes in commodity prices, regulation and other factors; inaccuracies of our reserve estimates or our assumptions underlying them; the timing of our exploration and development expenditures; risks relating to decreases in our credit rating; market availability of, and risks associated with, transport of oil and gas; our ability to successfully complete asset dispositions and the risks related thereto; our 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 we receive for oil and natural gas; risks relating to any unforeseen liabilities of ours; the impacts of hedging on our results of operations; adverse weather conditions that may negatively impact development or production activities; uninsured or underinsured losses resulting from our oil and gas operations; lack of control over non-operated properties; failure of our properties to yield oil or gas in commercially viable quantities; the impact and costs of compliance with laws and regulations governing our 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 local regulations, climate change issues, negative public perception of our industry and corporate governance standards; our ability to replace our oil and natural gas reserves; unforeseen underperformance of or liabilities associated with acquired properties or other strategic partnerships or investments; competition in the oil and gas industry; any loss of our senior management or technical personnel; cybersecurity attacks or failures of our telecommunication and other information technology infrastructure; and other risks described under the caption "Risk Factors" in Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and our Annual Report on Form 10?K for the period ended December 31, 2019. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201105006163/en/

CONTACT: Company Contact: Brandon Day Title: Investor Relations Manager Phone: 303?837?1661 Email: Brandond@whiting.com