DENVER–(BUSINESS WIRE)–Whiting Petroleum Corporation (NYSE: WLL) today announced that it gave notice to mandatorily convert $716.8 million of outstanding mandatory convertible notes into shares of Whiting common stock on December 19, 2016. Prior to such notice, holders of $4.2 million of outstanding mandatory convertible notes had voluntarily converted such notes into shares of Whiting common stock. As a result of the mandatory conversion and the voluntary conversions, the Company will have issued approximately 77.6 million shares of its common stock to retire all of the $721.0 million of mandatory convertible senior notes and mandatory convertible senior subordinated notes identified in the chart below.
James J. Volker, Whiting’s Chairman, President and CEO, commented, “Upon the completion of this conversion, we will reduce our debt by $721 million. After the conversion and the sale of our North Dakota midstream assets for $375 million that we anticipate to close in early 2017, we will have reduced our debt by $2.3 billion or 41% since March 31, 2016, approximately equal to all the debt assumed in the Kodiak acquisition. We expect these accomplishments to provide Whiting with greater financial flexibility to maximize the value of its premier assets in the North Dakota Bakken / Three Forks and DJ Basin Niobrara / Codell plays where we have 11,676 potential gross drilling locations. As can be seen in our corporate presentation, based on the latest 12 months of data, we rank as the top Bakken operator in terms of initial 90-day average production rates for all operators with more than 10 wells. Such results do not fully reflect the impact of our recent super, 10+ million pound sand volume completions where our initial Bakken / Three Forks wells are tracking at or above a 1.5 million BOE (barrel oil equivalent) type curve for a completed well cost of only $7.5 million. Having achieved this debt reduction target, our enhanced balance sheet and strong hedge position for 2017 should allow us to rapidly develop our top-tier properties and accelerate our growth.”
The following table sets forth the aggregate principal amount of each series of mandatory convertible notes that have been or will be converted into shares of Whiting common stock.
|6.50% Mandatory Convertible Senior Subordinated Notes due 2018||$||5,975|
|5.00% Mandatory Convertible Senior Notes due 2019||$||4,651|
|1.25% Mandatory Convertible Senior Notes due 2020||$||467,789|
|5.75% Mandatory Convertible Senior Notes due 2021||$||125,218|
|6.25% Mandatory Convertible Senior Notes due 2023||$||117,333|
Pursuant to the terms of the convertible notes, holders of the mandatory convertible notes will also receive accrued and unpaid interest to the conversion date.
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and 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.