Monday, January 7, 2019

Whiting 3Q18 Corporate Presentation -- December, 2018

Before we get to the Whiting presentation.  From the EOG 3Q18 corporation presentation, this is how much it cost EOG to drill/complete a Bakken well in 2018:
  • $4.6 million
This is how much it cost EOG to drill/complete a well in the Bakken in 2012:
  • $10 million
Now, back to the Whiting 3Q18 presentation.

Link here.

December 6, 2018.

Only a few items that might be different from earlier presentations.

33 slides total.

  • Strategic vision: 
    • reduce debt and deliver free cash flow at $55 NYMEX oil price
    • maintain a strong hedge position (60 - 70% of oil volumes), 12 - 14 months forward
  • Results:
    • 3Q18: net cash exceeded CAPEX by $56 million 
    • 3Q18: discretionary cash flow exceeded capital expenditures by $90 million
    • forecast: 129,000 boe/d
    • Williston Basin operated production forecast to grow 13% 4Q year-over-year (2018 over 2017)
    • plan to drill 120 Bakken/Three Forks in the Williston Basin in CY2018
    • plan to put on production (POP) 123 wells in Williston Basin in CY2018
  • cash flow, historical, in millions
    • 4Q17:  $96
    • 1Q18: $103
    • 2Q18: $56
    • 3Q18: $90
    • four-quarter total: $355
  • Among 12 peers: #1 in generating peer leading cash flow
    • only two peers: positive cash flow
    • ten peers: with negative cash flow
  • Williston Basin acreage
    • Whiting is now #1 in acreage across the core Williston Basin
    • Tier 1 areas: 296,063 net acres
      • East Missouri Breaks
      • Foreman Butte
      • Hidden Bench
      • Polar
      • Sanish/Polar
    • Tier 2 areas: 171,038 net acres
      • Pronghorn
      • West Missouri Breaks
      • Other (probably Wildrose area)
    • Total net acres: 467,101 net acres in Williston Basin
  • 2018 deal
    • Bakken bolt-on
    • 54,833 net acres
    • $130 million
    • new acres overlap Hidden Bench, East Missouri Breaks acreage
    • 1,290 boepd
    • $2,370 / acre
  • McNamara Infill Project: Sanish
    • four sections (22/23/26/27)
    • drill/complete six Bakken infill wells
    • parent wells: 9 parent wells completed in 2007 and 2012
    • seven middle Bakken wells; two Three Forks wells
    • sounds like 15 wells across four sections
    • project has produced more than 1.5 million bbls oil
    • projected DSU recovery factor prior to McNamara infill wells: 11%
    • projected DSU recovery factor including McNamara infill: 20%
  • Sanish generation 4.0 Bakken completions; graph highlights three DSUs
    • McNamara (220 days production)
    • Sanish Bay (190 days production)
    • Bartelson (60 days production)
  • Western Sanish generation 4.0 Bakken wells outpeform  by 83%
    • Bartelson parent: 35K bo at 60 days
    • Bartelson children: 65K bo at 60 days
    • Pinwheel pad -- I think CLR had one of the first of these designs
    • 8 new Bakken wells
    • 6 new Three Forks wells
    • 2 existing wells
    • spud to TD average: 9.3 days
    • 76 daysof fracking, 100 million lbs proppant, 2 million bbls fresh water
    • will come in 8% under budget
  • Generation 4.0 Bakken completions (2018)
    • 600 - 1,200 lbs/ft proppant
    • 200' - 300' stage spacing
    • 15 - 40 bbl/ft fluid
    • 30' to 50' cluster spacing
  • Generation 3.0 (2016 - 2017)
  • Generation 2.0 (2013 - 2015)
  • Generation 1.0 (2010 - 2012)
Much, much more at the link.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on what you read here or what you think you may have read here.

Fracking:
  • 10,000-ft lateral
  • about 8 million lbs proppant
  • about 40 stages

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