Whiting Petroleum Corp.’s (NYSE: WLL) proved reserves, effective Dec. 31, increased to an estimated 780 million barrels of oil equivalent (MMBOE), of which 83% were classified as oil and 90% were classified as oil and natural gas liquids.
After replacing 2014 production, this represents a 29% increase over the year-end 2013 combined total for Whiting and Kodiak Oil & Gas Corp. of 606 MMBOE. Whiting’s reserves, including those acquired in the Kodiak acquisition, were independently engineered by Cawley, Gillespie & Associates Inc.
James J. Volker, Whiting’s chairman, president, and CEO, commented, “The 29% growth in our reserves underpins our strong financial position. Accordingly, on Dec. 19, our bank syndicate increased our credit commitments to $4.5 billion reflecting our reserves and current market conditions. At year-end 2014, we estimate we will have approximately $1.4 billion drawn, leaving us $3.1 billion of liquidity.
“Another factor underpinning our solid outlook is the flexibility we have regarding our 2015 capital program. We intend to tailor our 2015 plans to maintain strong liquidity, keep a responsible debt to EBITDAX level and deliver moderate year over year production growth. We believe the company’s strong outlook is further reflected by Moody's Investors Service recent upgrade of Whiting Petroleum Corp.'s corporate family rating to Ba1 from Ba2, just one notch below investment grade.
“We are also pursuing monetization of select assets that would reduce debt and create up to $1 billion in additional liquidity. Given volatile oil prices, we intend to issue final 2015 guidance on our fourth-quarter 2014 results call in February 2015.”