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Whiting Petroleum plunges as Q3 production, prices fell

|About: Whiting Petroleum Corporation (WLL)|By:, SA News Editor

Whiting Petroleum (NYSE:WLL) -8.3% after-hours following a much larger than forecast Q3 loss and a one-third Y/Y drop in revenues, as production and averaged realized prices fell.

Q3 production fell 4% Y/Y to 11.36M boe and YTD output slipped less than 1% to 34.5M boe, but WLL reaffirms full-year production guidance of 45M-46.5M boe.

WLL says its Q3 capex totaled $225M, but it expects a decline in Q4 to $134M-$154M since part of the capital for wells being put on production during Q4 was incurred during Q3 and as activity declines seasonally.

WLL's average realized prices all fell during Q3: the average price received for its crude oil before hedging was $49.71/bbl vs. $64.70/bbl in the prior-year quarter, $0.03/Mcf for natural gas vs. $1.02/Mcf in the previous year and $3.07/bbl for natural gas liquids vs. $22.22/bbl a year ago.

Q3 lease operating expenses jumped 19% Y/Y to $7.51/boe, at the high end of the company's full-year guidance of $7.15-$7.55/boe; as WLL fully realizes savings fits cost-cutting initiatives, it estimates it could reduce absolute LOE by 10%-15% in 2020 compared to 2019 levels.

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