Whiting Petroleum Corp WLL
Q4 2013 Earnings Call Transcript

Transcript Call Date 02/28/2013

Operator: Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2012 Whiting Petroleum Corp Earnings Conference Call. My name is Lassie, and I'll be your operator for today. At this time all participants are in listen-only mode. We will facilitate a question-and-answer session towards the end of the presentation. As a reminder, this call is being recorded for replay purposes.

I would like to turn the presentation over to your host for today's call, Mr. Eric Hagen, Vice President of Investor Relations. Please proceed.

Eric K. Hagen - VP, IR: Thanks, Lassie. Good morning, and welcome to Whiting Petroleum Corporation's fourth quarter and full year 2012 earnings conference call. On the call for Whiting this morning is the Whiting management team. During this call, we'll review our results for the fourth quarter of 2012 and then discuss the outlook for the first quarter and full year 2013. This conference call is being recorded and will also be available on our website at www.whiting. To access the call and the webcast, please click on the Investor Relations box and then click on the Webcast link.

Please note the forward-looking statements disclaimer and discussion of non-GAAP measures and reserve and resource information on Slide 2. Also take note that our Form 10-Q for the 12 months ended December 31, 2012, is expected to be filed later today. Reconciliations of non-GAAP measures we refer to and the applicable GAAP measures can be found in our earnings release and in our webcast slides.

With that, I'll turn the call over to Jim Volker.

James J. Volker - CEO: Thanks Eric, and good morning, everyone. We're pleased to report that 2012 was another record year for Whiting and our shareholders. Whiting's production in the fourth quarter averaged 86,055 BOEs per day, a 22% increase over the fourth quarter of 2011 and 4% increase over the third quarter of 2012. Production for 2012 averaged 82, 540 BOEs per day. This represents another 22% increase over 2011 total production.

Adding back the 4,500 BOEs per day that was conveyed to the Whiting USA Trust II in March of 2012, our production in 2012 was up 28% over 2011. Whiting is currently a company projected to grow at a sustainable 14% and preparing to shift to higher growth rate through monetization of some assets. We see only an approximate 400 million 2013 out-spend which we can easily over with our liquidity.

Keep in mind that our borrowing base facility is a $2.5 billion facility with only 1.2 billion drawn against it at 12/31/2012 to 1.3 billion remains. Further the monetizations that we expect will cover in our opinion at least two times the outspend.

Moving to Slide 4 the largest contributor to our production growth has been our North Dakota operation. This has led us to become the top oil producer in the state for the month of December. According to the December 2012 oil and gas production report published by the North Dakota State Industrial Commission, Whiting was a number one oil producer in North Dakota at 66,156 barrels per day. Those are true oil barrels, not BOEs.

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