Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 15, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'WHITING PETROLEUM CORP | ' |
Entity Central Index Key | '0001255474 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 118,981,965 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $227,083 | $699,460 |
Accounts receivable trade, net | 464,474 | 341,177 |
Prepaid expenses and other | 41,566 | 28,981 |
Total current assets | 733,123 | 1,069,618 |
Property and equipment: | ' | ' |
Oil and gas properties, successful efforts method | 11,421,570 | 10,065,150 |
Other property and equipment | 234,116 | 206,385 |
Total property and equipment | 11,655,686 | 10,271,535 |
Less accumulated depreciation, depletion and amortization | -3,158,917 | -2,676,490 |
Total property and equipment, net | 8,496,769 | 7,595,045 |
Debt issuance costs | 47,845 | 48,530 |
Other long-term assets | 81,231 | 120,277 |
TOTAL ASSETS | 9,358,968 | 8,833,470 |
Current liabilities: | ' | ' |
Accounts payable trade | 144,801 | 107,692 |
Accrued capital expenditures | 216,076 | 158,739 |
Accrued liabilities and other | 219,525 | 214,109 |
Revenues and royalties payable | 214,147 | 198,558 |
Taxes payable | 69,505 | 50,052 |
Accrued interest | 43,057 | 44,405 |
Derivative liabilities | 24,044 | 3,482 |
Deferred income taxes | 10,324 | 648 |
Total current liabilities | 941,479 | 777,685 |
Long-term debt | 2,653,512 | 2,653,834 |
Deferred income taxes | 1,436,447 | 1,278,030 |
Production Participation Plan liability | ' | 87,503 |
Asset retirement obligations | 157,243 | 116,442 |
Deferred gain on sale | 68,852 | 79,065 |
Other long-term liabilities | 4,300 | 4,212 |
Total liabilities | 5,261,833 | 4,996,771 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Common stock, $0.001 par value, 300,000,000 shares authorized; 120,443,221 issued and 118,981,965 outstanding as of June 30, 2014 and 120,101,555 issued and 118,657,245 outstanding as of December 31, 2013 | 120 | 120 |
Additional paid-in capital | 1,583,501 | 1,583,542 |
Retained earnings | 2,505,418 | 2,244,905 |
Total Whiting shareholders' equity | 4,089,039 | 3,828,567 |
Noncontrolling interest | 8,096 | 8,132 |
Total equity | 4,097,135 | 3,836,699 |
TOTAL LIABILITIES AND EQUITY | $9,358,968 | $8,833,470 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 120,443,221 | 120,101,555 |
Common stock, shares outstanding | 118,981,965 | 118,657,245 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
REVENUES AND OTHER INCOME: | ' | ' | ' | ' |
Oil, NGL and natural gas sales | $825,760 | $651,868 | $1,547,010 | $1,256,982 |
Loss on hedging activities | ' | -437 | ' | -648 |
Amortization of deferred gain on sale | 7,473 | 7,954 | 15,217 | 15,930 |
Gain on sale of properties | 1,796 | 3,387 | 12,355 | 3,432 |
Interest income and other | 593 | 797 | 1,289 | 1,244 |
Total revenues and other income | 835,622 | 663,569 | 1,575,871 | 1,276,940 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
Lease operating | 118,361 | 105,080 | 233,147 | 204,958 |
Production taxes | 68,857 | 53,814 | 128,887 | 105,085 |
Depreciation, depletion and amortization | 268,509 | 223,446 | 503,774 | 424,605 |
Exploration and impairment | 31,512 | 43,393 | 73,619 | 80,673 |
General and administrative | 35,555 | 29,213 | 67,889 | 58,098 |
Interest expense | 39,045 | 23,121 | 81,189 | 44,591 |
Change in Production Participation Plan liability | -3,636 | 7,723 | ' | 12,130 |
Commodity derivative (gain) loss, net | 26,076 | -30,192 | 50,611 | 1,065 |
Total costs and expenses | 584,279 | 455,598 | 1,139,116 | 931,205 |
INCOME BEFORE INCOME TAXES | 251,343 | 207,971 | 436,755 | 345,735 |
INCOME TAX EXPENSE (BENEFIT): | ' | ' | ' | ' |
Current | 7,355 | -2,511 | 8,355 | -2,089 |
Deferred | 92,562 | 75,538 | 167,923 | 126,636 |
Income tax expense | 99,917 | 73,027 | 176,278 | 124,547 |
NET INCOME | 151,426 | 134,944 | 260,477 | 221,188 |
Net loss attributable to noncontrolling interests | 18 | 12 | 36 | 31 |
NET INCOME AVAILABLE TO SHAREHOLDERS | 151,444 | 134,956 | 260,513 | 221,219 |
Preferred stock dividends | ' | -269 | ' | -538 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $151,444 | $134,687 | $260,513 | $220,681 |
EARNINGS PER COMMON SHARE: | ' | ' | ' | ' |
Basic (in dollars per share) | $1.27 | $1.14 | $2.19 | $1.87 |
Diluted (in dollars per share) | $1.26 | $1.14 | $2.17 | $1.86 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ' | ' | ' | ' |
Basic (in shares) | 118,968 | 117,930 | 118,946 | 117,859 |
Diluted (in shares) | 120,027 | 118,901 | 120,045 | 118,929 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' | ||
NET INCOME | $151,426 | $134,944 | $260,477 | $221,188 | ||
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ' | ' | ' | ' | ||
OCI amortization on de-designated hedges | ' | 277 | [1],[2] | ' | 410 | [1],[2] |
Total other comprehensive income, net of tax | ' | 277 | ' | 410 | ||
COMPREHENSIVE INCOME | 151,426 | 135,221 | 260,477 | 221,598 | ||
Comprehensive loss attributable to noncontrolling interest | 18 | 12 | 36 | 31 | ||
COMPREHENSIVE INCOME ATTRIBUTABLE TO WHITING | $151,444 | $135,233 | $260,513 | $221,629 | ||
[1] | Presented net of income tax expense of $160 and $238 for the three and six months ended June 30, 2013, respectively. | |||||
[2] | These OCI amortization amounts on de-designated hedges are reclassified from accumulated other comprehensive income (bAOCIb) to loss on hedging activities in the consolidated statements of income. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' |
OCI amortization on de-designated hedges, income tax expense | $160 | $238 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $260,477 | $221,188 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 503,774 | 424,605 |
Deferred income tax expense | 167,923 | 126,636 |
Amortization of debt issuance costs and debt premium | 7,342 | 4,950 |
Stock-based compensation | 11,046 | 11,632 |
Amortization of deferred gain on sale | -15,217 | -15,930 |
Gain on sale of properties | -12,355 | -3,432 |
Undeveloped leasehold and oil and gas property impairments | 36,031 | 37,464 |
Exploratory dry hole costs | 3,622 | 11,628 |
Change in Production Participation Plan liability | ' | 12,130 |
Non-cash portion of derivative (gains) losses | 44,744 | -10,614 |
Other, net | -3,205 | -9,359 |
Changes in current assets and liabilities: | ' | ' |
Accounts receivable trade, net | -123,297 | -27,527 |
Prepaid expenses and other | -13,633 | -10,738 |
Accounts payable trade and accrued liabilities | -10,628 | -54,980 |
Revenues and royalties payable | 15,589 | 11,084 |
Taxes payable | 19,453 | 11,494 |
Net cash provided by operating activities | 891,666 | 740,231 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Drilling and development capital expenditures | -1,326,080 | -1,109,852 |
Acquisition of oil and gas properties | -44,519 | -91,620 |
Other property and equipment | -34,675 | -38,183 |
Proceeds from sale of oil and gas properties | 83,152 | 3,127 |
Deposit received on properties held for sale | ' | 85,980 |
Issuance of note receivable | ' | -10,004 |
Cash paid for investing derivatives | ' | -44,900 |
Cash settlement received for investing derivatives | ' | 2,371 |
Net cash used in investing activities | -1,322,122 | -1,203,081 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings under credit agreement | 100,000 | 1,300,000 |
Repayments of borrowings under credit agreement | -100,000 | -850,000 |
Debt issuance costs | -4,461 | -2,586 |
Proceeds from stock options exercised | 253 | ' |
Restricted stock used for tax withholdings | -11,340 | -5,514 |
Repayment of tax sharing liability | -26,373 | ' |
Preferred stock dividends paid | ' | -538 |
Net cash provided by (used in) financing activities | -41,921 | 441,362 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -472,377 | -21,488 |
CASH AND CASH EQUIVALENTS: | ' | ' |
Beginning of period | 699,460 | 44,800 |
End of period | 227,083 | 23,312 |
NONCASH INVESTING ACTIVITIES: | ' | ' |
Accrued capital expenditures | $216,076 | $109,744 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total Whiting Shareholders' Equity [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
BALANCES at Dec. 31, 2012 | $3,444,988 | ' | $119 | $1,566,717 | ($1,236) | $1,879,388 | $8,184 | $3,453,172 |
BALANCES (in shares) at Dec. 31, 2012 | ' | 172,000 | 118,582,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 221,219 | ' | ' | ' | ' | 221,219 | -31 | 221,188 |
Other comprehensive income | 410 | ' | ' | ' | 410 | ' | ' | 410 |
Conversion of preferred stock to common | 1 | ' | 1 | ' | ' | ' | ' | 1 |
Conversion of preferred stock to common (in shares) | ' | -172,000 | 794,000 | ' | ' | ' | ' | ' |
Restricted stock issued (in shares) | ' | ' | 941,000 | ' | ' | ' | ' | ' |
Restricted stock forfeited (in shares) | ' | ' | -69,000 | ' | ' | ' | ' | ' |
Restricted stock used for tax withholdings | -5,514 | ' | ' | -5,514 | ' | ' | ' | -5,514 |
Restricted stock used for tax withholdings (in shares) | ' | ' | -114,000 | ' | ' | ' | ' | ' |
Stock-based compensation | 11,632 | ' | ' | 11,632 | ' | ' | ' | 11,632 |
Preferred dividends paid | -538 | ' | ' | ' | ' | -538 | ' | -538 |
BALANCES at Jun. 30, 2013 | 3,672,198 | ' | 120 | 1,572,835 | -826 | 2,100,069 | 8,153 | 3,680,351 |
BALANCES (in shares) at Jun. 30, 2013 | ' | ' | 120,134,000 | ' | ' | ' | ' | ' |
BALANCES at Dec. 31, 2013 | 3,828,567 | ' | 120 | 1,583,542 | ' | 2,244,905 | 8,132 | 3,836,699 |
BALANCES (in shares) at Dec. 31, 2013 | ' | ' | 120,102,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 260,513 | ' | ' | ' | ' | 260,513 | -36 | 260,477 |
Exercise of stock options | 253 | ' | ' | 253 | ' | ' | ' | 253 |
Exercise of stock options (in shares) | ' | ' | 5,000 | ' | ' | ' | ' | ' |
Restricted stock issued | ' | ' | 1 | -1 | ' | ' | ' | ' |
Restricted stock issued (in shares) | ' | ' | 908,000 | ' | ' | ' | ' | ' |
Restricted stock forfeited | ' | ' | -1 | 1 | ' | ' | ' | ' |
Restricted stock forfeited (in shares) | ' | ' | -381,000 | ' | ' | ' | ' | ' |
Restricted stock used for tax withholdings | -11,340 | ' | ' | -11,340 | ' | ' | ' | -11,340 |
Restricted stock used for tax withholdings (in shares) | ' | ' | -191,000 | ' | ' | ' | ' | ' |
Stock-based compensation | 11,046 | ' | ' | 11,046 | ' | ' | ' | 11,046 |
BALANCES at Jun. 30, 2014 | $4,089,039 | ' | $120 | $1,583,501 | ' | $2,505,418 | $8,096 | $4,097,135 |
BALANCES (in shares) at Jun. 30, 2014 | ' | ' | 120,443,000 | ' | ' | ' | ' | ' |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
BASIS OF PRESENTATION [Abstract] | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
Description of Operations—Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, NGLs and natural gas primarily in the Rocky Mountains and Permian Basin regions of the United States. Unless otherwise specified or the context otherwise requires, all references in these notes to “Whiting” or the “Company” are to Whiting Petroleum Corporation and its consolidated subsidiaries. | |
Consolidated Financial Statements—The unaudited consolidated financial statements include the accounts of Whiting Petroleum Corporation, its consolidated subsidiaries and Whiting’s pro rata share of the accounts of Whiting USA Trust I (“Trust I”) pursuant to Whiting’s 15.8% ownership interest in Trust I. Investments in entities which give Whiting significant influence, but not control, over the investee are accounted for using the equity method. Under the equity method, investments are stated at cost plus the Company’s equity in undistributed earnings and losses. All intercompany balances and transactions have been eliminated upon consolidation. These financial statements have been prepared in accordance with GAAP for interim financial reporting. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim results. However, operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Whiting’s 2013 Annual Report on Form 10-K includes certain definitions and a summary of significant accounting policies and should be read in conjunction with this Quarterly Report on Form 10‑Q. Except as disclosed herein, there have been no material changes to the information disclosed in the notes to the consolidated financial statements included in Whiting’s 2013 Annual Report on Form 10‑K. | |
Earnings Per Share—Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted earnings per common share is calculated by dividing adjusted net income available to common shareholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings per share calculations consist of unvested restricted stock awards and outstanding stock options using the treasury method, as well as convertible perpetual preferred stock using the if-converted method. In the computation of diluted earnings per share, excess tax benefits that would be created upon the assumed vesting of unvested restricted shares or the assumed exercise of stock options (i.e. hypothetical excess tax benefits) are included in the assumed proceeds component of the treasury share method to the extent that such excess tax benefits are more likely than not to be realized. When a loss from continuing operations exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. | |
OIL_AND_GAS_PROPERTIES
OIL AND GAS PROPERTIES | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
OIL AND GAS PROPERTIES [Abstract] | ' | ||||||
OIL AND GAS PROPERTIES | ' | ||||||
2. OIL AND GAS PROPERTIES | |||||||
Net capitalized costs related to the Company’s oil and gas producing activities at June 30, 2014 and December 31, 2013 are as follows (in thousands): | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Proved leasehold costs | $ | 1,711,398 | $ | 1,633,495 | |||
Unproved leasehold costs | 326,314 | 372,298 | |||||
Costs of completed wells and facilities | 8,906,004 | 7,563,350 | |||||
Wells and facilities in progress | 477,854 | 496,007 | |||||
Total oil and gas properties, successful efforts method | 11,421,570 | 10,065,150 | |||||
Accumulated depletion | -3,124,901 | -2,645,841 | |||||
Oil and gas properties, net | $ | 8,296,669 | $ | 7,419,309 | |||
ACQUISITIONS_AND_DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 6 Months Ended | |||
Jun. 30, 2014 | ||||
ACQUISITIONS AND DIVESTITURES [Abstract] | ' | |||
ACQUISITIONS AND DIVESTITURES | ' | |||
3. ACQUISITIONS AND DIVESTITURES | ||||
2014 Acquisitions | ||||
There were no significant acquisitions during the six months ended June 30, 2014. | ||||
2014 Divestitures | ||||
On March 27, 2014, the Company completed the sale of approximately 49,900 gross (41,000 net) acres, which consisted mainly of undeveloped acreage as well as its interests in certain producing oil and gas wells, in its Big Tex prospect located in the Delaware Basin of Texas for a cash purchase price of $75.6 million (subject to post-closing adjustments) resulting in a pre-tax gain on sale of $12.4 million. | ||||
2013 Acquisitions | ||||
On September 20, 2013, the Company completed the acquisition of approximately 39,300 gross (17,300 net) acres, including interests in 121 producing oil and gas wells and undeveloped acreage, in the Williston Basin located in Williams and McKenzie counties of North Dakota and Roosevelt and Richland counties of Montana for an aggregate unadjusted purchase price of $260.0 million. Revenue and earnings from these properties since the September 20, 2013 acquisition date are not material. Disclosures of pro forma revenues and net income for the acquisition of these wells are therefore not material and have not been presented accordingly. | ||||
The acquisition was recorded using the purchase method of accounting. The initial purchase price has been adjusted for post-closing settlements that have occurred since the acquisition date totaling $5.8 million. The following table summarizes the allocation of the $255.5 million adjusted purchase price to the tangible assets acquired and liabilities assumed in this acquisition of oil and gas properties (in thousands): | ||||
Purchase price | $ | 255,537 | ||
Allocation of purchase price: | ||||
Proved properties | $ | 229,002 | ||
Unproved properties | 27,335 | |||
Oil in tank inventory | 522 | |||
Accounts receivable | 578 | |||
Asset retirement obligations | -1,900 | |||
Total | $ | 255,537 | ||
2013 Divestitures | ||||
On October 31, 2013, the Company completed the sale of approximately 45,000 gross (32,200 net) acres, which consisted mainly of undeveloped acreage as well as its interests in certain producing oil and gas wells, in its Big Tex prospect located in the Delaware Basin of Texas for a cash purchase price of $150.8 million, resulting in a pre-tax gain on sale of $11.5 million. Of the total net acres sold, approximately 30,800 net acres are located in Pecos County, Texas, and approximately 1,400 net acres are located in Reeves County, Texas. | ||||
On July 15, 2013, the Company completed the sale of its interests in certain oil and gas producing properties located in its EOR projects in the Postle and Northeast Hardesty fields in Texas County, Oklahoma, including the related Dry Trail plant gathering and processing facility, oil delivery pipeline, its entire 60% interest in the Transpetco CO2 pipeline, crude oil swap contracts and certain other related assets and liabilities (collectively the “Postle Properties”) for a cash purchase price of $809.2 million after selling costs and post-closing adjustments. This divestiture resulted in a pre-tax gain on sale of $109.1 million. The Company used the net proceeds from this sale to repay a portion of the debt outstanding under its credit agreement. | ||||
LONGTERM_DEBT
LONG-TERM DEBT | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
LONG-TERM DEBT [Abstract] | ' | ||||||
LONG-TERM DEBT | ' | ||||||
4. LONG-TERM DEBT | |||||||
Long-term debt consisted of the following at June 30, 2014 and December 31, 2013 (in thousands): | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
6.5% Senior Subordinated Notes due 2018 | $ | 350,000 | $ | 350,000 | |||
5% Senior Notes due 2019 | 1,100,000 | 1,100,000 | |||||
5.75% Senior Notes due 2021, including unamortized debt premium of $3,512 and $3,834, respectively | 1,203,512 | 1,203,834 | |||||
Total debt | $ | 2,653,512 | $ | 2,653,834 | |||
Credit Agreement—Whiting Oil and Gas Corporation (“Whiting Oil and Gas”), the Company’s wholly-owned subsidiary, has a credit agreement with a syndicate of banks that as of June 30, 2014 had a borrowing base of $2.8 billion, of which $1.2 billion has been committed by lenders and is available for borrowing. The Company may increase the maximum aggregate amount of commitments under the credit agreement up to the $2.8 billion borrowing base if certain conditions are satisfied, including the consent of lenders participating in the increase. As of June 30, 2014, the Company had $1,197.0 million of available borrowing capacity, which was net of $3.0 million in letters of credit with no borrowings outstanding. | |||||||
The credit agreement provides for interest only payments until the expiration date of the agreement, when all outstanding borrowings are due. In April 2014, Whiting Oil and Gas entered into an amendment to its credit agreement that extended the principal repayment date from April 2016 to the earlier of (i) April 2, 2019 or (ii) with certain exceptions, the date that is 91 days prior to the scheduled maturity of any permitted additional unsecured senior or senior subordinated notes, which includes the Company’s 5% Senior Notes due March 2019, unless redeemed earlier in accordance with the credit agreement. | |||||||
The borrowing base under the credit agreement is determined at the discretion of the lenders, based on the collateral value of the Company’s proved reserves that have been mortgaged to such lenders, and is subject to regular redeterminations on May 1 and November 1 of each year, as well as special redeterminations described in the credit agreement, in each case which may reduce the amount of the borrowing base. A portion of the revolving credit facility in an aggregate amount not to exceed $50.0 million may be used to issue letters of credit for the account of Whiting Oil and Gas or other designated subsidiaries of the Company. As of June 30, 2014, $47.0 million was available for additional letters of credit under the agreement. | |||||||
Interest accrues at the Company’s option at either (i) a base rate for a base rate loan plus the margin in the table below, where the base rate is defined as the greatest of the prime rate, the federal funds rate plus 0.50% or an adjusted LIBOR rate plus 1.00%, or (ii) an adjusted LIBOR rate for a Eurodollar loan plus the margin in the table below. Additionally, the Company also incurs commitment fees as set forth in the table below on the unused portion of the lesser of the aggregate commitments of the lenders or the borrowing base, and which are included as a component of interest expense. | |||||||
Applicable | Applicable | ||||||
Margin for Base | Margin for | Commitment | |||||
Ratio of Outstanding Borrowings to Borrowing Base | Rate Loans | Eurodollar Loans | Fee | ||||
Less than 0.25 to 1.0 | 0.50% | 1.50% | 0.38% | ||||
Greater than or equal to 0.25 to 1.0 but less than 0.50 to 1.0 | 0.75% | 1.75% | 0.38% | ||||
Greater than or equal to 0.50 to 1.0 but less than 0.75 to 1.0 | 1.00% | 2.00% | 0.50% | ||||
Greater than or equal to 0.75 to 1.0 but less than 0.90 to 1.0 | 1.25% | 2.25% | 0.50% | ||||
Greater than or equal to 0.90 to 1.0 | 1.50% | 2.50% | 0.50% | ||||
The credit agreement contains restrictive covenants that may limit the Company’s ability to, among other things, incur additional indebtedness, sell assets, make loans to others, make investments, enter into mergers, enter into hedging contracts, incur liens and engage in certain other transactions without the prior consent of its lenders. Except for limited exceptions, the credit agreement also restricts the Company’s ability to make any dividend payments or distributions on its common stock. These restrictions apply to all of the net assets of Whiting Oil and Gas. As of June 30, 2014, total restricted net assets were $4,508.9 million, and the amount of retained earnings free from restrictions was $24.1 million. The credit agreement requires the Company, as of the last day of any quarter, (i) to not exceed a total debt to the last four quarters’ EBITDAX ratio (as defined in the credit agreement) of 4.0 to 1.0 and (ii) to have a consolidated current assets to consolidated current liabilities ratio (as defined in the credit agreement and which includes an add back of the available borrowing capacity under the credit agreement) of not less than 1.0 to 1.0. The Company was in compliance with its covenants under the credit agreement as of June 30, 2014. | |||||||
The obligations of Whiting Oil and Gas under the credit agreement are secured by a first lien on substantially all of Whiting Oil and Gas’ properties included in the borrowing base for the credit agreement. The Company has guaranteed the obligations of Whiting Oil and Gas under the credit agreement and has pledged the stock of Whiting Oil and Gas as security for its guarantee. | |||||||
Senior Notes and Senior Subordinated Notes—In September 2010, the Company issued at par $350.0 million of 6.5% Senior Subordinated Notes due October 2018 (the “2018 Notes”). The estimated fair value of these notes was $364.9 million as of June 30, 2014, based on quoted market prices for these debt securities, and such fair value is therefore designated as Level 1 within the valuation hierarchy. | |||||||
Issuance of Senior Notes. In September 2013, the Company issued at par $1,100.0 million of 5% Senior Notes due March 2019 and $800.0 million of 5.75% Senior Notes due March 2021, and issued at 101% of par an additional $400.0 million of 5.75% Senior Notes due March 2021 (collectively, the “Senior Notes”). The estimated fair values of the 2019 notes and the 2021 notes were $1,156.4 million and $1,317.0 million, respectively, as of June 30, 2014, based on quoted market prices for these debt securities, and such fair values are therefore designated as Level 1 within the valuation hierarchy. | |||||||
The Senior Notes are unsecured obligations of Whiting Petroleum Corporation and are subordinated to all of the Company’s secured indebtedness, which consists of Whiting Oil and Gas’ credit agreement. The 2018 Notes are also unsecured obligations of Whiting Petroleum Corporation and are subordinated to all of the Company’s senior debt, which currently consists of the Senior Notes and Whiting Oil and Gas’ credit agreement. The Company’s obligations under the 2018 Notes and the Senior Notes are fully and unconditionally guaranteed by the Company’s 100%-owned subsidiary, Whiting Oil and Gas (the “Guarantor”). Any subsidiaries other than the Guarantor are minor subsidiaries as defined by Rule 3-10(h)(6) of Regulation S‑X of the SEC. Whiting Petroleum Corporation has no assets or operations independent of this debt and its investments in its consolidated subsidiaries. | |||||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended | |||
Jun. 30, 2014 | ||||
ASSET RETIREMENT OBLIGATIONS [Abstract] | ' | |||
ASSET RETIREMENT OBLIGATIONS | ' | |||
5. ASSET RETIREMENT OBLIGATIONS | ||||
The Company’s asset retirement obligations represent the present value of estimated future costs associated with the plugging and abandonment of oil and gas wells, removal of equipment and facilities from leased acreage, and land restoration (including removal of certain onshore and offshore facilities in California) in accordance with applicable local, state and federal laws. The Company follows FASB ASC Topic 410, Asset Retirement and Environmental Obligations, to determine its asset retirement obligation amounts by calculating the present value of the estimated future cash outflows associated with its plug and abandonment obligations. The current portions at June 30, 2014 and December 31, 2013 were $8.3 million and $9.7 million, respectively, and are included in accrued liabilities and other. Revisions to the liability typically occur due to changes in estimated abandonment costs or well economic lives, or if federal or state regulators enact new requirements regarding the abandonment of wells. The following table provides a reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2014 (in thousands): | ||||
June 30, | ||||
2014 | ||||
Asset retirement obligation at January 1, 2014 | $ | 126,148 | ||
Additional liability incurred | 11,570 | |||
Revisions in estimated cash flows (1) | 26,215 | |||
Accretion expense | 6,543 | |||
Obligations on sold properties | -759 | |||
Liabilities settled | -4,162 | |||
Asset retirement obligation at June 30, 2014 | $ | 165,555 | ||
-1 | Revisions in estimated cash flows during the six months ended June 30, 2014 are primarily attributable to increased estimates of future costs for oilfield services and related materials required to plug and abandon wells in certain fields in the Rocky Mountains region. | |||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | ' | |||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |||||||||||
6. DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations, and Whiting uses derivative instruments to manage its commodity price risk. Whiting follows FASB ASC Topic 815, Derivatives and Hedging, to account for its derivative financial instruments. | ||||||||||||
Commodity Derivative Contracts—Historically, prices received for crude oil and natural gas production have been volatile because of seasonal weather patterns, supply and demand factors, worldwide political factors and general economic conditions. Whiting enters into derivative contracts, primarily costless collars and swaps, to achieve a more predictable cash flow by reducing its exposure to commodity price volatility. Commodity derivative contracts are thereby used to ensure adequate cash flow to fund the Company’s capital programs and to manage returns on acquisitions and drilling programs. Costless collars are designed to establish floor and ceiling prices on anticipated future oil or gas production, while swaps are designed to establish a fixed price for anticipated future oil or gas production. While the use of these derivative instruments limits the downside risk of adverse price movements, they may also limit future revenues from favorable price movements. The Company does not enter into derivative contracts for speculative or trading purposes. | ||||||||||||
Whiting Derivatives. The table below details the Company’s costless collar derivatives, including its proportionate share of Whiting USA Trust II (“Trust II”) derivatives, entered into to hedge forecasted crude oil production revenues, as of July 1, 2014. | ||||||||||||
Whiting Petroleum Corporation | ||||||||||||
Derivative | Contracted Crude | Weighted Average NYMEX Price | ||||||||||
Instrument | Period | Oil Volumes (Bbl) | Collar Ranges for Crude Oil (per Bbl) | |||||||||
Collars | Jul - Dec 2014 | 24,090 | $ 80.00 - $122.50 | |||||||||
Three-way collars (1) | Jul - Dec 2014 | 8,880,000 | $71.82 - $85.68 - $103.85 | |||||||||
Jan - Dec 2015 | 1,200,000 | $70.00 - $85.00 - $107.90 | ||||||||||
Total | 10,104,090 | |||||||||||
-1 | A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The sold call establishes a maximum price (ceiling) Whiting will receive for the volumes under contract. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price. | |||||||||||
In March 2013, Whiting entered into certain crude oil swap contracts in order to achieve more predictable cash flows and manage returns on certain oil and gas properties that the Company was considering for monetization. Accordingly, the acquisition of these swap contracts and cash receipts from settlements of these swap positions have been reflected as an investing activity in the statement of cash flows. On July 15, 2013, upon closing of the sale of the Postle Properties discussed in the Acquisitions and Divestitures footnote, these crude oil swaps were novated to the buyer. Cash settlements that do not relate to investing derivatives or that do not have a significant financing element are reflected as operating activities in the statement of cash flows. | ||||||||||||
Derivatives Conveyed to Whiting USA Trust II. In connection with the Company’s conveyance in March 2012 of a term net profits interest to Trust II and related sale of 18,400,000 Trust II units to the public, the right to any future hedge payments made or received by Whiting on certain of its derivative contracts have been conveyed to Trust II, and therefore such payments will be included in Trust II’s calculation of net proceeds. Under the terms of the aforementioned conveyance, Whiting retains 10% of the net proceeds from the underlying properties, which results in third-party public holders of Trust II units receiving 90%, and Whiting retaining 10%, of the future economic results of commodity derivative contracts conveyed to Trust II. The relative ownership of the future economic results of such commodity derivatives is reflected in the tables below. No additional hedges are allowed to be placed on Trust II assets. | ||||||||||||
The 10% portion of Trust II derivatives that Whiting has retained the economic rights to (and which are also included in the first derivative table above) are as follows: | ||||||||||||
Whiting Petroleum Corporation | ||||||||||||
Derivative | Contracted Crude | NYMEX Price Collar Ranges for | ||||||||||
Instrument | Period | Oil Volumes (Bbl) | Crude Oil (per Bbl) | |||||||||
Collars | Jul - Dec 2014 | 24,090 | $ 80.00 - $122.50 | |||||||||
The 90% portion of Trust II derivative contracts of which Whiting has transferred the economic rights to third-party public holders of Trust II units (and which have not been reflected in the above tables) are as follows: | ||||||||||||
Third-party Public Holders of Trust II Units | ||||||||||||
Derivative | Contracted Crude | NYMEX Price Collar Ranges for | ||||||||||
Instrument | Period | Oil Volumes (Bbl) | Crude Oil (per Bbl) | |||||||||
Collars | Jul - Dec 2014 | 216,810 | $ 80.00 - $122.50 | |||||||||
Embedded Commodity Derivative Contract—In May 2011, Whiting entered into a long-term contract to purchase CO2 from 2015 through 2029 for use in its EOR project that is being carried out at its North Ward Estes field in Texas. This contract contains a price adjustment clause that is linked to changes in NYMEX crude oil prices. The Company has determined that the portion of this contract linked to NYMEX oil prices is not clearly and closely related to the host contract, and the Company has therefore bifurcated this embedded pricing feature from its host contract and reflected it at fair value in the consolidated financial statements. As of June 30, 2014, the estimated fair value of the embedded derivative in this CO2 purchase contract was an asset of $13.3 million. | ||||||||||||
Although CO2 is not a commodity that is actively traded on a public exchange, the market price for CO2 generally fluctuates in tandem with increases or decreases in crude oil prices. When Whiting enters into a long-term CO2 purchase contract where the price of CO2 is fixed and does not adjust with changes in oil prices, the Company is exposed to the risk of paying higher than the market rate for CO2 in a climate of declining oil and CO2 prices. This in turn could have a negative impact on the project economics of the Company’s CO2 flood at North Ward Estes. As a result, the Company reduces its exposure to this risk by entering into certain CO2 purchase contracts which have prices that fluctuate along with changes in crude oil prices. | ||||||||||||
Derivative Instrument Reporting—All derivative instruments are recorded in the consolidated financial statements at fair value, other than derivative instruments that meet the “normal purchase normal sale” exclusion. The following tables summarize the effects of commodity derivative instruments on the consolidated statements of income for the three and six months ended June 30, 2014 and 2013 (in thousands): | ||||||||||||
Loss Reclassified from AOCI into | ||||||||||||
Income (Effective Portion) | ||||||||||||
ASC 815 Cash Flow | Six Months Ended June 30, | |||||||||||
Hedging Relationships (1) | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Loss on hedging activities | $ | - | $ | -648 | |||||||
Loss Reclassified from AOCI into | ||||||||||||
Income (Effective Portion) | ||||||||||||
ASC 815 Cash Flow | Three Months Ended June 30, | |||||||||||
Hedging Relationships (1) | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Loss on hedging activities | $ | - | $ | -437 | |||||||
-1 | Effective April 1, 2009, the Company elected to de-designate all of its commodity derivative contracts that had been previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively. As a result, such mark-to-market values at March 31, 2009 were frozen in AOCI as of the de-designation date and were being reclassified into earnings as the original hedged transactions affected income. As of December 31, 2013, all amounts previously in AOCI had been reclassified into earnings. | |||||||||||
(Gain) Loss Recognized in Income | ||||||||||||
Not Designated as | Six Months Ended June 30, | |||||||||||
ASC 815 Hedges | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Commodity derivative (gain) loss, net | $ | 27,491 | $ | 10,406 | |||||||
Embedded commodity contracts | Commodity derivative (gain) loss, net | 23,120 | -9,341 | |||||||||
Total | $ | 50,611 | $ | 1,065 | ||||||||
(Gain) Loss Recognized in Income | ||||||||||||
Not Designated as | Three Months Ended June 30, | |||||||||||
ASC 815 Hedges | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Commodity derivative (gain) loss, net | $ | 17,304 | $ | -23,854 | |||||||
Embedded commodity contracts | Commodity derivative (gain) loss, net | 8,772 | -6,338 | |||||||||
Total | $ | 26,076 | $ | -30,192 | ||||||||
Offsetting of Derivative Assets and Liabilities. With each individual derivative counterparty, the Company typically has numerous hedge positions that span a several-month time period and that typically result in both fair value asset and liability positions held with that counterparty, which positions are all offset to a single fair value asset or liability amount at the end of each reporting period. The Company nets its derivative instrument fair value amounts executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The following tables summarize the location and fair value amounts of all derivative instruments in the consolidated balance sheets, as well as the gross recognized derivative assets, liabilities and amounts offset in the consolidated balance sheets (in thousands): | ||||||||||||
June 30, 2014 (1) | ||||||||||||
Net | ||||||||||||
Gross | Recognized | |||||||||||
Recognized | Gross | Fair Value | ||||||||||
Not Designated as | Assets/ | Amounts | Assets/ | |||||||||
ASC 815 Hedges | Balance Sheet Classification | Liabilities | Offset | Liabilities | ||||||||
Derivative assets: | ||||||||||||
Commodity contracts | Prepaid expenses and other | $ | 2,000 | $ | -1,980 | $ | 20 | |||||
Embedded commodity contracts | Prepaid expenses and other | 447 | - | 447 | ||||||||
Commodity contracts | Other long-term assets | 1,521 | -1,329 | 192 | ||||||||
Embedded commodity contracts | Other long-term assets | 12,849 | - | 12,849 | ||||||||
Total derivative assets | $ | 16,817 | $ | -3,309 | $ | 13,508 | ||||||
Derivative liabilities: | ||||||||||||
Commodity contracts | Current derivative liabilities | $ | 26,024 | $ | -1,980 | $ | 24,044 | |||||
Commodity contracts | Non-current derivative liabilities | 1,329 | -1,329 | - | ||||||||
Total derivative liabilities | $ | 27,353 | $ | -3,309 | $ | 24,044 | ||||||
December 31, 2013 (1) | ||||||||||||
Net | ||||||||||||
Gross | Recognized | |||||||||||
Recognized | Gross | Fair Value | ||||||||||
Not Designated as | Assets/ | Amounts | Assets/ | |||||||||
ASC 815 Hedges | Balance Sheet Classification | Liabilities | Offset | Liabilities | ||||||||
Derivative assets: | ||||||||||||
Commodity contracts | Prepaid expenses and other | $ | 23,752 | $ | -22,478 | $ | 1,274 | |||||
Embedded commodity contracts | Other long-term assets | 36,416 | - | 36,416 | ||||||||
Total derivative assets | $ | 60,168 | $ | -22,478 | $ | 37,690 | ||||||
Derivative liabilities: | ||||||||||||
Commodity contracts | Current derivative liabilities | $ | 25,960 | $ | -22,478 | $ | 3,482 | |||||
Total derivative liabilities | $ | 25,960 | $ | -22,478 | $ | 3,482 | ||||||
-1 | Because counterparties to the Company’s derivative contracts are lenders under Whiting Oil and Gas’ credit agreement, which eliminates its need to post or receive collateral associated with its derivative positions, columns for cash collateral pledged or received have not been presented in the tables above. | |||||||||||
Contingent Features in Derivative Instruments. None of the Company’s derivative instruments contain credit-risk-related contingent features. Counterparties to the Company’s derivative contracts are high credit-quality financial institutions that are lenders under Whiting’s credit agreement. The Company uses only credit agreement participants to hedge with, since these institutions are secured equally with the holders of Whiting’s bank debt, which eliminates the potential need to post collateral when Whiting is in a derivative liability position. As a result, the Company is not required to post letters of credit or corporate guarantees for its derivative counterparties in order to secure contract performance obligations. | ||||||||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||
7. FAIR VALUE MEASUREMENTS | |||||||||||||
Cash and cash equivalents, accounts receivable and accounts payable are carried at cost, which approximates their fair value because of the short-term maturity of these instruments. The Company’s credit agreement has a recorded value that approximates its fair value since its variable interest rate is tied to current market rates. The Company’s Senior Notes and Senior Subordinated Notes are recorded at cost, and the fair values of these instruments are included in the Long-Term Debt footnote. The Company’s derivative financial instruments are recorded at fair value and include a measure of the Company’s own nonperformance risk or that of its counterparties as appropriate. | |||||||||||||
The Company follows FASB ASC Topic 820, Fair Value Measurement and Disclosure, which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: | |||||||||||||
· | Level 1: Quoted Prices in Active Markets for Identical Assets – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||
· | Level 2: Significant Other Observable Inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||
· | Level 3: Significant Unobservable Inputs – inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||||||||||||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. | |||||||||||||
The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values (in thousands): | |||||||||||||
Total Fair Value | |||||||||||||
Level 1 | Level 2 | Level 3 | 30-Jun-14 | ||||||||||
Financial Assets | |||||||||||||
Commodity derivatives – current | $ | - | $ | 20 | $ | - | $ | 20 | |||||
Embedded commodity derivatives – current | - | - | 447 | 447 | |||||||||
Commodity derivatives – non-current | - | 192 | - | 192 | |||||||||
Embedded commodity derivatives – non-current | - | - | 12,849 | 12,849 | |||||||||
Total financial assets | $ | - | $ | 212 | $ | 13,296 | $ | 13,508 | |||||
Financial Liabilities | |||||||||||||
Commodity derivatives – current | $ | - | $ | 24,044 | $ | - | $ | 24,044 | |||||
Total financial liabilities | $ | - | $ | 24,044 | $ | - | $ | 24,044 | |||||
Total Fair Value | |||||||||||||
Level 1 | Level 2 | Level 3 | 31-Dec-13 | ||||||||||
Financial Assets | |||||||||||||
Commodity derivatives – current | $ | - | $ | 1,274 | $ | - | $ | 1,274 | |||||
Embedded commodity derivatives – non-current | - | - | 36,416 | 36,416 | |||||||||
Total financial assets | $ | - | $ | 1,274 | $ | 36,416 | $ | 37,690 | |||||
Financial Liabilities | |||||||||||||
Commodity derivatives – current | $ | - | $ | 3,482 | $ | - | $ | 3,482 | |||||
Total financial liabilities | $ | - | $ | 3,482 | $ | - | $ | 3,482 | |||||
The following methods and assumptions were used to estimate the fair values of the assets and liabilities in the tables above: | |||||||||||||
Commodity Derivatives. Commodity derivative instruments consist mainly of costless collar option contracts for crude oil. The Company’s costless collars are valued based on an income approach. The option model considers various assumptions, such as quoted forward prices for commodities, time value and volatility factors. These assumptions are observable in the marketplace throughout the full term of the contract, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace, and are therefore designated as Level 2 within the valuation hierarchy. The discount rates used in the fair values of these instruments include a measure of either the Company’s or the counterparty’s nonperformance risk, as appropriate. The Company utilizes its counterparties’ valuations to assess the reasonableness of its own valuations. | |||||||||||||
Embedded Commodity Derivatives. The embedded commodity derivative relates to a long-term CO2 purchase contract, which has a price adjustment clause that is linked to changes in NYMEX crude oil prices. Whiting has determined that the portion of this contract linked to NYMEX oil prices is not clearly and closely related to its corresponding host contract, and the Company has therefore bifurcated this embedded pricing feature from the host contract and reflected it at fair value in its consolidated financial statements. This embedded commodity derivative is valued based on an income approach. The option model used in the valuation considers various assumptions, including quoted forward prices for commodities, LIBOR discount rates and either the Company’s or the counterparty’s nonperformance risk, as appropriate. | |||||||||||||
The assumptions used in the CO2 contract valuation include inputs that are both observable in the marketplace as well as unobservable during the term of the contract. With respect to forward prices for NYMEX crude oil where there is a lack of price transparency in certain future periods, such unobservable oil price inputs are significant to the CO2 contract valuation methodology, and the contract’s fair value is therefore designated as Level 3 within the valuation hierarchy. | |||||||||||||
Level 3 Fair Value Measurements. A third-party valuation specialist is utilized on a quarterly basis to determine the fair value of the embedded commodity derivative instrument designated as Level 3. The Company reviews this valuation (including the related model inputs and assumptions) and analyzes changes in fair value measurements between periods. The Company corroborates such inputs, calculations and fair value changes using various methodologies, and reviews unobservable inputs for reasonableness utilizing relevant information from other published sources. | |||||||||||||
The following table presents a reconciliation of changes in the fair value of financial assets (liabilities) designated as Level 3 in the valuation hierarchy for the three and six months ended June 30, 2014 and 2013 (in thousands): | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Fair value asset, beginning of period | $ | 22,068 | $ | 26,718 | $ | 36,416 | $ | 23,715 | |||||
Unrealized gains (losses) on embedded commodity | -8,772 | 6,290 | -23,120 | 9,293 | |||||||||
derivative contracts included in earnings (1) | |||||||||||||
Transfers into (out of) Level 3 | - | - | - | - | |||||||||
Fair value asset, end of period | $ | 13,296 | $ | 33,008 | $ | 13,296 | $ | 33,008 | |||||
-1 | Included in commodity derivative (gain) loss, net in the consolidated statements of income. | ||||||||||||
Quantitative Information About Level 3 Fair Value Measurements. The significant unobservable inputs used in the fair value measurement of the Company’s embedded commodity derivative contract designated as Level 3 are as follows: | |||||||||||||
Fair Value at | |||||||||||||
30-Jun-14 | Valuation | Unobservable | Range | ||||||||||
(in thousands) | Technique | Input | (per Bbl) | ||||||||||
Embedded commodity derivative | $13,296 | Option model | Future prices of NYMEX crude oil after December 31, 2020 | $89.78 - $109.47 | |||||||||
Sensitivity to Changes In Significant Unobservable Inputs. As presented in the table above, the significant unobservable inputs used in the fair value measurement of Whiting’s embedded commodity derivative within its CO2 purchase contract are the future prices of NYMEX crude oil from January 2021 to December 2029. Significant increases (decreases) in these unobservable inputs in isolation would result in a significantly lower (higher) fair value asset measurement. | |||||||||||||
Nonrecurring Fair Value Measurements. The Company applies the provisions of the fair value measurement standard to its nonrecurring, non-financial measurements, including proved oil and gas property impairments. The Company did not recognize any impairment write-downs with respect to its proved oil and gas properties during the 2014 or 2013 reporting periods presented. | |||||||||||||
DEFERRED_COMPENSATION
DEFERRED COMPENSATION | 6 Months Ended | |||
Jun. 30, 2014 | ||||
DEFERRED COMPENSATION [Abstract] | ' | |||
DEFERRED COMPENSATION | ' | |||
8. DEFERRED COMPENSATION | ||||
Production Participation Plan—The Company had a Production Participation Plan (the “Plan”) in which all employees participated. On June 11, 2014, the Board of Directors of the Company terminated the Plan effective December 31, 2013. Prior to Plan termination, interests in oil and gas properties acquired, developed or sold during the year were allocated to the Plan on an annual basis as determined by the Compensation Committee of the Company’s Board of Directors. Once allocated, the interests (not legally conveyed) were fixed. Interest allocations prior to 1995 consisted of 2%‑3% overriding royalty interests. Interest allocations after 1995 were 1.75%‑5% of oil and gas sales less lease operating expenses and production taxes. | ||||
Employees vested in the Plan ratably at 20% per year over a five-year period. However, pursuant to the terms of the Plan, upon Plan termination effective December 31, 2013 all employees fully vested, and the Company is required to distribute to each Plan participant an amount, based upon the valuation method set forth in the Plan, in a lump sum payment twelve months after the date of termination. This distribution will include the value of proved undeveloped oil and gas properties (“PUDs”) awarded upon Plan termination and is based on forecasted commodity prices for crude oil and natural gas as of December 31, 2013. The fully vested lump sum cash payment to Plan participants will total $113.4 million and has been reflected as a current payable in accrued liabilities and other, as it will be distributed to Plan participants during the first half of 2015. | ||||
Accrued compensation expense under the Plan for the six months ended June 30, 2014 primarily relates to the change in liability for employee vestings and PUDs assigned upon Plan termination and amounted to $23.6 million charged to general and administrative expense and $2.3 million charged to exploration expense. Accrued compensation expense under the Plan for the six months ended June 30, 2013 amounted to $21.5 million charged to general and administrative expense and $2.2 million charged to exploration expense. | ||||
Prior to Plan termination, the Company recorded non-cash changes in the present value of estimated future payments under the Plan as a separate line item in the consolidated statements of income. As a result of Plan termination, all changes in the Plan liability during 2014 related to cash termination payments to be made during 2015. | ||||
The following table presents changes in the Plan’s estimated long-term liability (in thousands): | ||||
Long-term Production Participation Plan liability at January 1, 2014 | $ | 87,503 | ||
Change in liability for vesting and PUDs assigned upon Plan termination | 25,888 | |||
Amount reflected as a current liability | -113,391 | |||
Long-term Production Participation Plan liability at June 30, 2014 | $ | - | ||
SHAREHOLDERS_EQUITY_AND_NONCON
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST [Abstract] | ' | ||||||
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST | ' | ||||||
9. SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTEREST | |||||||
6.25% Convertible Perpetual Preferred Stock—In June 2009, the Company completed a public offering of 6.25% convertible perpetual preferred stock (“preferred stock”), selling 3,450,000 shares at a price of $100.00 per share. As a result of voluntary conversions and the Company exercising its right to mandatorily convert shares of preferred stock effective June 27, 2013, all 172,129 shares of preferred stock outstanding on March 31, 2013 were converted into 792,919 shares of common stock. As of June 30, 2014, no shares of preferred stock remained issued or outstanding. | |||||||
Each holder of the preferred stock was entitled to an annual dividend of $6.25 per share to be paid quarterly in cash, common stock or a combination thereof on March 15, June 15, September 15 and December 15, once such dividend had been declared by Whiting’s board of directors. | |||||||
Equity Incentive Plan—At the Company’s 2013 Annual Meeting held on May 7, 2013, shareholders approved the Whiting Petroleum Corporation 2013 Equity Incentive Plan (the “2013 Equity Plan”), which replaced the Whiting Petroleum Corporation 2003 Equity Incentive Plan (the “2003 Equity Plan”) and includes the authority to issue 5,300,000 shares of the Company’s common stock. Upon shareholder approval of the 2013 Equity Plan, the 2003 Equity Plan was terminated. The 2003 Equity Plan continues to govern awards that were outstanding as of the date of its termination, which remain in effect pursuant to their terms. Any shares netted or forfeited after May 7, 2013 under the 2003 Equity Plan will be available for future issuance under the 2013 Equity Plan. Under the 2013 Equity Plan, no employee or officer participant may be granted options for more than 600,000 shares of common stock, stock appreciation rights relating to more than 600,000 shares of common stock, or more than 300,000 shares of restricted stock during any calendar year. As of June 30, 2014, 5,044,045 shares of common stock remained available for grant under the 2013 Equity Plan. | |||||||
Noncontrolling Interest—The Company’s noncontrolling interest represents an unrelated third party’s 25% ownership interest in Sustainable Water Resources, LLC. The table below summarizes the activity for the equity attributable to the noncontrolling interest (in thousands): | |||||||
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Balance at January 1 | $ | 8,132 | $ | 8,184 | |||
Net income (loss) | -36 | -31 | |||||
Balance at June 30 | $ | 8,096 | $ | 8,153 | |||
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
INCOME TAXES [Abstract] | ' |
INCOME TAXES | ' |
10. INCOME TAXES | |
Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes for the three and six months ended June 30, 2014 and 2013 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 35% to pre-tax income primarily because of state income taxes and estimated permanent differences. | |
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. | |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
11. EARNINGS PER SHARE | |||||||||||||
The reconciliations between basic and diluted earnings per share are as follows (in thousands, except per share data): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Basic Earnings Per Share | |||||||||||||
Numerator: | |||||||||||||
Net income available to shareholders | $ | 151,444 | $ | 134,956 | $ | 260,513 | $ | 221,219 | |||||
Preferred stock dividends (1) | - | -225 | - | -494 | |||||||||
Net income available to common shareholders, basic | $ | 151,444 | $ | 134,731 | $ | 260,513 | $ | 220,725 | |||||
Denominator: | |||||||||||||
Weighted average shares outstanding, basic | 118,968 | 117,930 | 118,946 | 117,859 | |||||||||
Diluted Earnings Per Share | |||||||||||||
Numerator: | |||||||||||||
Net income available to common shareholders, basic | $ | 151,444 | $ | 134,731 | $ | 260,513 | $ | 220,725 | |||||
Preferred stock dividends | - | 269 | - | 538 | |||||||||
Adjusted net income available to common shareholders, diluted | $ | 151,444 | $ | 135,000 | $ | 260,513 | $ | 221,263 | |||||
Denominator: | |||||||||||||
Weighted average shares outstanding, basic | 118,968 | 117,930 | 118,946 | 117,859 | |||||||||
Restricted stock and stock options | 1,059 | 267 | 1,099 | 321 | |||||||||
Convertible perpetual preferred stock | - | 704 | - | 749 | |||||||||
Weighted average shares outstanding, diluted | 120,027 | 118,901 | 120,045 | 118,929 | |||||||||
Earnings per common share, basic | $ | 1.27 | $ | 1.14 | $ | 2.19 | $ | 1.87 | |||||
Earnings per common share, diluted | $ | 1.26 | $ | 1.14 | $ | 2.17 | $ | 1.86 | |||||
-1 | For the three and six months ended June 30, 2013, amount includes a decrease of $0.04 million in preferred stock dividends for preferred stock dividends accumulated. | ||||||||||||
For the three months ended June 30, 2013, the diluted earnings per share calculation excludes (i) the dilutive effect of 814,932 incremental shares of restricted stock that did not meet its market-based vesting criteria as of June 30, 2013, and (ii) the dilutive effect of 945 common shares for stock options that were out-of-the-money. | |||||||||||||
For the six months ended June 30, 2013, the diluted earnings per share calculation excludes (i) the dilutive effect of 645,017 incremental shares of restricted stock that did not meet its market-based vesting criteria as of June 30, 2013, and (ii) the dilutive effect of 174 common shares for stock options that were out-of-the-money. | |||||||||||||
ADOPTED_AND_RECENTLY_ISSUED_AC
ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS [Abstract] | ' |
ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | ' |
12. ADOPTED AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014‑09”). The objective of ASU 2014-09 is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards. ASU 2014‑09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently evaluating the impact of adopting ASU 2014‑09, but the standard is not expected to have a significant effect on its consolidated financial statements. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (“ASU 2013-04”). The objective of ASU 2013-04 is to provide guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date. ASU 2013‑04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted ASU 2013-04 effective January 1, 2014, which did not have an impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The objective of ASU 2013-11 is to provide guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted ASU 2013-11 effective January 1, 2014, which did not have an impact on the Company’s consolidated financial statements, other than insignificant balance sheet reclassifications. | |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2014 | |
SUBSEQUENT EVENT [Abstract] | ' |
SUBSEQUENT EVENT | ' |
13. SUBSEQUENT EVENT | |
On July 13, 2014, Whiting and Kodiak Oil & Gas Corp. (“Kodiak”) entered into a definitive agreement under which Whiting would acquire all of the outstanding common stock of Kodiak (the “Kodiak Acquisition”). Under the terms of the agreement, Kodiak shareholders will receive 0.177 of a share of Whiting common stock in exchange for each share of Kodiak common stock they own, representing consideration to each Kodiak shareholder of $13.90 per share based on the closing price of Whiting’s common stock on July 11, 2014. Based on Whiting’s stock price on such date, the transaction had a preliminary value of approximately $6.0 billion, including the assumption of Kodiak’s net debt of $2.2 billion. | |
In conjunction with the Kodiak Acquisition, the Company secured underwritten financing to increase the borrowing base under Whiting Oil and Gas’ credit facility to $4.5 billion, with aggregate commitments of $3.5 billion, of which $2.5 billion relates to commitments to extend revolving credit and $1.0 billion relates to a senior secured delayed draw term loan facility (“Delayed Draw Facility”). The Delayed Draw Facility may be used to provide cash consideration for any repurchase or redemption of Kodiak’s outstanding senior notes in connection with the Kodiak Acquisition, to pay transaction costs and for other corporate purposes. The increase in the credit facility borrowing base and aggregate commitments only go into effect upon closing of the Kodiak Acquisition. | |
Completion of the Kodiak Acquisition is subject to the approval of both Whiting and Kodiak shareholders and certain court and regulatory approvals and customary closing conditions. The closing of this transaction is expected to occur in the fourth quarter of 2014. | |
Whiting and Kodiak each have the right to terminate the Kodiak Acquisition agreement in certain circumstances, including, but not limited to, (i) if the Kodiak Acquisition is not completed by January 9, 2015 (except that such date may be extended to March 10, 2015 if the only unsatisfied condition to the completion of the Kodiak Acquisition is the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended), (ii) the other party materially breaches its representations or covenants and such breach is not, or is not capable of being, cured within 30 days of notice, (iii) the Supreme Court of British Columbia fails to approve the Kodiak Acquisition, (iv) Whiting’s or Kodiak’s shareholders fail to approve the Kodiak Acquisition, or (v) if the other party’s board of directors makes an adverse recommendation change. In the event that the Kodiak Acquisition agreement is terminated, Whiting could be subject to a termination fee of $130.0 million plus reimbursement of up to $10.0 million in Kodiak’s expenses, under certain circumstances. | |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
BASIS OF PRESENTATION [Abstract] | ' |
Consolidated Financial Statements | ' |
Consolidated Financial Statements—The unaudited consolidated financial statements include the accounts of Whiting Petroleum Corporation, its consolidated subsidiaries and Whiting’s pro rata share of the accounts of Whiting USA Trust I (“Trust I”) pursuant to Whiting’s 15.8% ownership interest in Trust I. Investments in entities which give Whiting significant influence, but not control, over the investee are accounted for using the equity method. Under the equity method, investments are stated at cost plus the Company’s equity in undistributed earnings and losses. All intercompany balances and transactions have been eliminated upon consolidation. These financial statements have been prepared in accordance with GAAP for interim financial reporting. In the opinion of management, the accompanying financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim results. However, operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. Whiting’s 2013 Annual Report on Form 10-K includes certain definitions and a summary of significant accounting policies and should be read in conjunction with this Quarterly Report on Form 10‑Q. Except as disclosed herein, there have been no material changes to the information disclosed in the notes to the consolidated financial statements included in Whiting’s 2013 Annual Report on Form 10‑K. | |
Earnings Per Share | ' |
Earnings Per Share—Basic earnings per common share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during each period. Diluted earnings per common share is calculated by dividing adjusted net income available to common shareholders by the weighted average number of diluted common shares outstanding, which includes the effect of potentially dilutive securities. Potentially dilutive securities for the diluted earnings per share calculations consist of unvested restricted stock awards and outstanding stock options using the treasury method, as well as convertible perpetual preferred stock using the if-converted method. In the computation of diluted earnings per share, excess tax benefits that would be created upon the assumed vesting of unvested restricted shares or the assumed exercise of stock options (i.e. hypothetical excess tax benefits) are included in the assumed proceeds component of the treasury share method to the extent that such excess tax benefits are more likely than not to be realized. When a loss from continuing operations exists, all potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. | |
OIL_AND_GAS_PROPERTIES_Tables
OIL AND GAS PROPERTIES (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
OIL AND GAS PROPERTIES [Abstract] | ' | ||||||
Net capitalized costs related to oil and gas producing activities | ' | ||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Proved leasehold costs | $ | 1,711,398 | $ | 1,633,495 | |||
Unproved leasehold costs | 326,314 | 372,298 | |||||
Costs of completed wells and facilities | 8,906,004 | 7,563,350 | |||||
Wells and facilities in progress | 477,854 | 496,007 | |||||
Total oil and gas properties, successful efforts method | 11,421,570 | 10,065,150 | |||||
Accumulated depletion | -3,124,901 | -2,645,841 | |||||
Oil and gas properties, net | $ | 8,296,669 | $ | 7,419,309 | |||
ACQUISITIONS_AND_DIVESTITURES_
ACQUISITIONS AND DIVESTITURES (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
ACQUISITIONS AND DIVESTITURES [Abstract] | ' | |||
Purchase price allocation | ' | |||
Purchase price | $ | 255,537 | ||
Allocation of purchase price: | ||||
Proved properties | $ | 229,002 | ||
Unproved properties | 27,335 | |||
Oil in tank inventory | 522 | |||
Accounts receivable | 578 | |||
Asset retirement obligations | -1,900 | |||
Total | $ | 255,537 | ||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
LONG-TERM DEBT [Abstract] | ' | ||||||
Schedule of long-term debt | ' | ||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
6.5% Senior Subordinated Notes due 2018 | $ | 350,000 | $ | 350,000 | |||
5% Senior Notes due 2019 | 1,100,000 | 1,100,000 | |||||
5.75% Senior Notes due 2021, including unamortized debt premium of $3,512 and $3,834, respectively | 1,203,512 | 1,203,834 | |||||
Total debt | $ | 2,653,512 | $ | 2,653,834 | |||
Summary of margin rates and commitment fees | ' | ||||||
Applicable | Applicable | ||||||
Margin for Base | Margin for | Commitment | |||||
Ratio of Outstanding Borrowings to Borrowing Base | Rate Loans | Eurodollar Loans | Fee | ||||
Less than 0.25 to 1.0 | 0.50% | 1.50% | 0.38% | ||||
Greater than or equal to 0.25 to 1.0 but less than 0.50 to 1.0 | 0.75% | 1.75% | 0.38% | ||||
Greater than or equal to 0.50 to 1.0 but less than 0.75 to 1.0 | 1.00% | 2.00% | 0.50% | ||||
Greater than or equal to 0.75 to 1.0 but less than 0.90 to 1.0 | 1.25% | 2.25% | 0.50% | ||||
Greater than or equal to 0.90 to 1.0 | 1.50% | 2.50% | 0.50% | ||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
ASSET RETIREMENT OBLIGATIONS [Abstract] | ' | |||
Schedule of reconciliation of the Company's asset retirement obligations | ' | |||
June 30, | ||||
2014 | ||||
Asset retirement obligation at January 1, 2014 | $ | 126,148 | ||
Additional liability incurred | 11,570 | |||
Revisions in estimated cash flows (1) | 26,215 | |||
Accretion expense | 6,543 | |||
Obligations on sold properties | -759 | |||
Liabilities settled | -4,162 | |||
Asset retirement obligation at June 30, 2014 | $ | 165,555 | ||
-1 | Revisions in estimated cash flows during the six months ended June 30, 2014 are primarily attributable to increased estimates of future costs for oilfield services and related materials required to plug and abandon wells in certain fields in the Rocky Mountains region. | |||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Derivative Financial Instruments [Line Items] | ' | |||||||||||
Schedule of effects of commodity derivative instruments | ' | |||||||||||
Loss Reclassified from AOCI into | ||||||||||||
Income (Effective Portion) | ||||||||||||
ASC 815 Cash Flow | Six Months Ended June 30, | |||||||||||
Hedging Relationships (1) | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Loss on hedging activities | $ | - | $ | -648 | |||||||
Loss Reclassified from AOCI into | ||||||||||||
Income (Effective Portion) | ||||||||||||
ASC 815 Cash Flow | Three Months Ended June 30, | |||||||||||
Hedging Relationships (1) | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Loss on hedging activities | $ | - | $ | -437 | |||||||
-1 | Effective April 1, 2009, the Company elected to de-designate all of its commodity derivative contracts that had been previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively. As a result, such mark-to-market values at March 31, 2009 were frozen in AOCI as of the de-designation date and were being reclassified into earnings as the original hedged transactions affected income. As of December 31, 2013, all amounts previously in AOCI had been reclassified into earnings. | |||||||||||
(Gain) Loss Recognized in Income | ||||||||||||
Not Designated as | Six Months Ended June 30, | |||||||||||
ASC 815 Hedges | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Commodity derivative (gain) loss, net | $ | 27,491 | $ | 10,406 | |||||||
Embedded commodity contracts | Commodity derivative (gain) loss, net | 23,120 | -9,341 | |||||||||
Total | $ | 50,611 | $ | 1,065 | ||||||||
(Gain) Loss Recognized in Income | ||||||||||||
Not Designated as | Three Months Ended June 30, | |||||||||||
ASC 815 Hedges | Income Statement Classification | 2014 | 2013 | |||||||||
Commodity contracts | Commodity derivative (gain) loss, net | $ | 17,304 | $ | -23,854 | |||||||
Embedded commodity contracts | Commodity derivative (gain) loss, net | 8,772 | -6,338 | |||||||||
Total | $ | 26,076 | $ | -30,192 | ||||||||
Location and fair value of derivative instruments | ' | |||||||||||
June 30, 2014 (1) | ||||||||||||
Net | ||||||||||||
Gross | Recognized | |||||||||||
Recognized | Gross | Fair Value | ||||||||||
Not Designated as | Assets/ | Amounts | Assets/ | |||||||||
ASC 815 Hedges | Balance Sheet Classification | Liabilities | Offset | Liabilities | ||||||||
Derivative assets: | ||||||||||||
Commodity contracts | Prepaid expenses and other | $ | 2,000 | $ | -1,980 | $ | 20 | |||||
Embedded commodity contracts | Prepaid expenses and other | 447 | - | 447 | ||||||||
Commodity contracts | Other long-term assets | 1,521 | -1,329 | 192 | ||||||||
Embedded commodity contracts | Other long-term assets | 12,849 | - | 12,849 | ||||||||
Total derivative assets | $ | 16,817 | $ | -3,309 | $ | 13,508 | ||||||
Derivative liabilities: | ||||||||||||
Commodity contracts | Current derivative liabilities | $ | 26,024 | $ | -1,980 | $ | 24,044 | |||||
Commodity contracts | Non-current derivative liabilities | 1,329 | -1,329 | - | ||||||||
Total derivative liabilities | $ | 27,353 | $ | -3,309 | $ | 24,044 | ||||||
December 31, 2013 (1) | ||||||||||||
Net | ||||||||||||
Gross | Recognized | |||||||||||
Recognized | Gross | Fair Value | ||||||||||
Not Designated as | Assets/ | Amounts | Assets/ | |||||||||
ASC 815 Hedges | Balance Sheet Classification | Liabilities | Offset | Liabilities | ||||||||
Derivative assets: | ||||||||||||
Commodity contracts | Prepaid expenses and other | $ | 23,752 | $ | -22,478 | $ | 1,274 | |||||
Embedded commodity contracts | Other long-term assets | 36,416 | - | 36,416 | ||||||||
Total derivative assets | $ | 60,168 | $ | -22,478 | $ | 37,690 | ||||||
Derivative liabilities: | ||||||||||||
Commodity contracts | Current derivative liabilities | $ | 25,960 | $ | -22,478 | $ | 3,482 | |||||
Total derivative liabilities | $ | 25,960 | $ | -22,478 | $ | 3,482 | ||||||
-1 | Because counterparties to the Company’s derivative contracts are lenders under Whiting Oil and Gas’ credit agreement, which eliminates its need to post or receive collateral associated with its derivative positions, columns for cash collateral pledged or received have not been presented in the tables above. | |||||||||||
Whiting Petroleum Corporation [Member] | ' | |||||||||||
Derivative Financial Instruments [Line Items] | ' | |||||||||||
Derivative instruments | ' | |||||||||||
Whiting Petroleum Corporation | ||||||||||||
Derivative | Contracted Crude | Weighted Average NYMEX Price | ||||||||||
Instrument | Period | Oil Volumes (Bbl) | Collar Ranges for Crude Oil (per Bbl) | |||||||||
Collars | Jul - Dec 2014 | 24,090 | $ 80.00 - $122.50 | |||||||||
Three-way collars (1) | Jul - Dec 2014 | 8,880,000 | $71.82 - $85.68 - $103.85 | |||||||||
Jan - Dec 2015 | 1,200,000 | $70.00 - $85.00 - $107.90 | ||||||||||
Total | 10,104,090 | |||||||||||
-1 | A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The sold call establishes a maximum price (ceiling) Whiting will receive for the volumes under contract. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price. | |||||||||||
Whiting USA Trust II Units [Member] | ' | |||||||||||
Derivative Financial Instruments [Line Items] | ' | |||||||||||
Derivative instruments | ' | |||||||||||
Whiting Petroleum Corporation | ||||||||||||
Derivative | Contracted Crude | NYMEX Price Collar Ranges for | ||||||||||
Instrument | Period | Oil Volumes (Bbl) | Crude Oil (per Bbl) | |||||||||
Collars | Jul - Dec 2014 | 24,090 | $ 80.00 - $122.50 | |||||||||
Third party public holders of Whiting USA Trust II [Member] | ' | |||||||||||
Derivative Financial Instruments [Line Items] | ' | |||||||||||
Derivative instruments | ' | |||||||||||
Third-party Public Holders of Trust II Units | ||||||||||||
Derivative | Contracted Crude | NYMEX Price Collar Ranges for | ||||||||||
Instrument | Period | Oil Volumes (Bbl) | Crude Oil (per Bbl) | |||||||||
Collars | Jul - Dec 2014 | 216,810 | $ 80.00 - $122.50 | |||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||||||
Fair value assets and liabilities measured on a recurring basis | ' | ||||||||||||
Total Fair Value | |||||||||||||
Level 1 | Level 2 | Level 3 | 30-Jun-14 | ||||||||||
Financial Assets | |||||||||||||
Commodity derivatives – current | $ | - | $ | 20 | $ | - | $ | 20 | |||||
Embedded commodity derivatives – current | - | - | 447 | 447 | |||||||||
Commodity derivatives – non-current | - | 192 | - | 192 | |||||||||
Embedded commodity derivatives – non-current | - | - | 12,849 | 12,849 | |||||||||
Total financial assets | $ | - | $ | 212 | $ | 13,296 | $ | 13,508 | |||||
Financial Liabilities | |||||||||||||
Commodity derivatives – current | $ | - | $ | 24,044 | $ | - | $ | 24,044 | |||||
Total financial liabilities | $ | - | $ | 24,044 | $ | - | $ | 24,044 | |||||
Total Fair Value | |||||||||||||
Level 1 | Level 2 | Level 3 | 31-Dec-13 | ||||||||||
Financial Assets | |||||||||||||
Commodity derivatives – current | $ | - | $ | 1,274 | $ | - | $ | 1,274 | |||||
Embedded commodity derivatives – non-current | - | - | 36,416 | 36,416 | |||||||||
Total financial assets | $ | - | $ | 1,274 | $ | 36,416 | $ | 37,690 | |||||
Financial Liabilities | |||||||||||||
Commodity derivatives – current | $ | - | $ | 3,482 | $ | - | $ | 3,482 | |||||
Total financial liabilities | $ | - | $ | 3,482 | $ | - | $ | 3,482 | |||||
Reconciliation of changes in the fair value of financial assets (liabilities) designated as Level 3 in the valuation hierarchy | ' | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Fair value asset, beginning of period | $ | 22,068 | $ | 26,718 | $ | 36,416 | $ | 23,715 | |||||
Unrealized gains (losses) on embedded commodity | -8,772 | 6,290 | -23,120 | 9,293 | |||||||||
derivative contracts included in earnings (1) | |||||||||||||
Transfers into (out of) Level 3 | - | - | - | - | |||||||||
Fair value asset, end of period | $ | 13,296 | $ | 33,008 | $ | 13,296 | $ | 33,008 | |||||
-1 | Included in commodity derivative (gain) loss, net in the consolidated statements of income. | ||||||||||||
Significant unobservable inputs used in the fair value measurement | ' | ||||||||||||
Fair Value at | |||||||||||||
30-Jun-14 | Valuation | Unobservable | Range | ||||||||||
(in thousands) | Technique | Input | (per Bbl) | ||||||||||
Embedded commodity derivative | $13,296 | Option model | Future prices of NYMEX crude oil after December 31, 2020 | $89.78 - $109.47 | |||||||||
DEFERRED_COMPENSATION_Tables
DEFERRED COMPENSATION (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
DEFERRED COMPENSATION [Abstract] | ' | |||
Schedule of changes in the plan's estimated long-term liability | ' | |||
Long-term Production Participation Plan liability at January 1, 2014 | $ | 87,503 | ||
Change in liability for vesting and PUDs assigned upon Plan termination | 25,888 | |||
Amount reflected as a current liability | -113,391 | |||
Long-term Production Participation Plan liability at June 30, 2014 | $ | - | ||
SHAREHOLDERS_EQUITY_AND_NONCON1
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST [Abstract] | ' | ||||||
Schedule of noncontrolling interest | ' | ||||||
Six Months Ended June 30, | |||||||
2014 | 2013 | ||||||
Balance at January 1 | $ | 8,132 | $ | 8,184 | |||
Net income (loss) | -36 | -31 | |||||
Balance at June 30 | $ | 8,096 | $ | 8,153 | |||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||
Reconciliations between basic and diluted earnings per share | ' | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Basic Earnings Per Share | |||||||||||||
Numerator: | |||||||||||||
Net income available to shareholders | $ | 151,444 | $ | 134,956 | $ | 260,513 | $ | 221,219 | |||||
Preferred stock dividends (1) | - | -225 | - | -494 | |||||||||
Net income available to common shareholders, basic | $ | 151,444 | $ | 134,731 | $ | 260,513 | $ | 220,725 | |||||
Denominator: | |||||||||||||
Weighted average shares outstanding, basic | 118,968 | 117,930 | 118,946 | 117,859 | |||||||||
Diluted Earnings Per Share | |||||||||||||
Numerator: | |||||||||||||
Net income available to common shareholders, basic | $ | 151,444 | $ | 134,731 | $ | 260,513 | $ | 220,725 | |||||
Preferred stock dividends | - | 269 | - | 538 | |||||||||
Adjusted net income available to common shareholders, diluted | $ | 151,444 | $ | 135,000 | $ | 260,513 | $ | 221,263 | |||||
Denominator: | |||||||||||||
Weighted average shares outstanding, basic | 118,968 | 117,930 | 118,946 | 117,859 | |||||||||
Restricted stock and stock options | 1,059 | 267 | 1,099 | 321 | |||||||||
Convertible perpetual preferred stock | - | 704 | - | 749 | |||||||||
Weighted average shares outstanding, diluted | 120,027 | 118,901 | 120,045 | 118,929 | |||||||||
Earnings per common share, basic | $ | 1.27 | $ | 1.14 | $ | 2.19 | $ | 1.87 | |||||
Earnings per common share, diluted | $ | 1.26 | $ | 1.14 | $ | 2.17 | $ | 1.86 | |||||
-1 | For the three and six months ended June 30, 2013, amount includes a decrease of $0.04 million in preferred stock dividends for preferred stock dividends accumulated. | ||||||||||||
BASIS_OF_PRESENTATION_Details
BASIS OF PRESENTATION (Details) (Whiting USA Trust I [Member]) | Jun. 30, 2014 |
Whiting USA Trust I [Member] | ' |
Consolidation disclosures | ' |
Company retained ownership (as a percent) | 15.80% |
OIL_AND_GAS_PROPERTIES_Details
OIL AND GAS PROPERTIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OIL AND GAS PROPERTIES [Abstract] | ' | ' |
Proved leasehold costs | $1,711,398 | $1,633,495 |
Unproved leasehold costs | 326,314 | 372,298 |
Costs of completed wells and facilities | 8,906,004 | 7,563,350 |
Wells and facilities in progress | 477,854 | 496,007 |
Total oil and gas properties, successful efforts method | 11,421,570 | 10,065,150 |
Accumulated depletion | -3,124,901 | -2,645,841 |
Oil and gas properties, net | $8,296,669 | $7,419,309 |
ACQUISITIONS_AND_DIVESTITURES_1
ACQUISITIONS AND DIVESTITURES (Details) (USD $) | 0 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | |||
Sep. 20, 2013 | Jun. 30, 2014 | Mar. 27, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Jul. 15, 2013 | |
Williston Basin [Member] | Williston Basin [Member] | Big Tex prospect properties [Member] | Big Tex prospect properties [Member] | Big Tex prospect properties [Member] | Big Tex prospect properties [Member] | Postle Properties [Member] | |
item | acre | acre | Pecos County, TX [Member] | Reeves County, TX [Member] | |||
acre | acre | acre | |||||
Acquisitions and divestitures [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Gross acquisition area (in acres) | 39,300 | ' | 49,900 | 45,000 | ' | ' | ' |
Net acquisition area (in acres) | 17,300 | ' | 41,000 | 32,200 | 30,800 | 1,400 | ' |
Number of wells acquired | 121 | ' | ' | ' | ' | ' | ' |
Purchase price for acquisition | $260,000,000 | ' | ' | ' | ' | ' | ' |
Post-closing purchase price adjustments | ' | 5,800,000 | ' | ' | ' | ' | ' |
Allocation of purchase price: | ' | ' | ' | ' | ' | ' | ' |
Proved properties | 229,002,000 | ' | ' | ' | ' | ' | ' |
Unproved properties | 27,335,000 | ' | ' | ' | ' | ' | ' |
Oil in tank inventory | 522,000 | ' | ' | ' | ' | ' | ' |
Accounts receivable | 578,000 | ' | ' | ' | ' | ' | ' |
Asset retirement obligations | -1,900,000 | ' | ' | ' | ' | ' | ' |
Total | 255,537,000 | ' | ' | ' | ' | ' | ' |
Divestitures | ' | ' | ' | ' | ' | ' | ' |
Ownership interest sold (as a percent) | ' | ' | ' | ' | ' | ' | 60.00% |
Proceeds from sale | ' | ' | 75,600,000 | 150,800,000 | ' | ' | 809,200,000 |
Pre tax gain on Divestiture | ' | ' | $12,400,000 | $11,500,000 | ' | ' | $109,100,000 |
LONGTERM_DEBT_Credit_agreement
LONG-TERM DEBT (Credit agreement) (Details) (USD $) | Jul. 13, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 26, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Subsequent Event [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 5% Senior Notes due 2019 [Member] | 5% Senior Notes due 2019 [Member] | 5% Senior Notes due 2019 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | Whiting Oil and Gas Corporation [Member] | Whiting Oil and Gas Corporation [Member] | Whiting Oil and Gas Corporation [Member] | Whiting Oil and Gas Corporation [Member] | |
Amendment credit agreement [Member] | Amendment credit agreement [Member] | Amendment credit agreement [Member] | Amendment credit agreement [Member] | ||||||||||||
Federal Funds Rate [Member] | LIBOR [Member] | ||||||||||||||
Debt disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt premium | ' | ' | ' | ' | ' | ' | ' | $3,512,000 | $3,834,000 | ' | ' | ' | ' | ' | ' |
Current borrowing capacity of credit facility | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000,000 | ' | ' |
Borrowing capacity of credit facility, net of letter of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,197,000,000 | ' | ' |
Outstanding borrowings under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Letters of credit borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Number of days prior to the scheduled maturity of any permitted notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '91 days | ' | ' | ' |
Interest Rate (as a percent) | ' | 6.50% | 6.50% | 6.50% | 5.00% | 5.00% | 5.00% | 5.75% | 5.75% | 5.75% | 5.75% | ' | ' | ' | ' |
Maximum borrowing capacity of credit facility | 4,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000,000 | ' | ' |
Portion of line of credit available for issuance of letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' |
Amount of revolving credit agreement available for additional letters of credit under the agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000,000 | ' | ' |
Basis points added to reference rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% |
Variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'federal funds | 'LIBOR |
Restricted net assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,508,900,000 | ' | ' |
Retained earnings free from restrictions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $24,100,000 | ' | ' |
EBITDAX ratio (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Minimum consolidated current assets to consolidated current liabilities ratio (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
LONGTERM_DEBT_Schedule_of_long
LONG-TERM DEBT (Schedule of long-term debt) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 26, 2013 |
In Thousands, unless otherwise specified | 6.5% Senior Subordinated Notes due 2018 [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 5% Senior Notes due 2019 [Member] | 5% Senior Notes due 2019 [Member] | 5% Senior Notes due 2019 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $2,653,512 | $2,653,834 | $350,000 | $350,000 | ' | $1,100,000 | $1,100,000 | ' | $1,203,512 | $1,203,834 | ' | ' |
Interest rate on debt instrument (as a percent) | ' | ' | 6.50% | 6.50% | 6.50% | 5.00% | 5.00% | 5.00% | 5.75% | 5.75% | 5.75% | 5.75% |
LONGTERM_DEBT_Summary_of_margi
LONG-TERM DEBT (Summary of margin rates and commitment fees) (Details) (Amendment credit agreement [Member], Whiting Oil and Gas Corporation [Member]) | 6 Months Ended |
Jun. 30, 2014 | |
Less than 0.25 to 1.0 [Member] | ' |
Debt Instrument [Line Items] | ' |
Variable interest rate basis | 'LIBOR |
Alternate variable interest rate basis | 'base loan rate |
Range, less than | 0.25 |
Applicable Margin for Base Rate Loans (as a percent) | 0.50% |
Applicable Margin for Eurodollar Loans (as a percent) | 1.50% |
Commitment Fee (as a percent) | 0.38% |
Greater than or equal to 0.25 to 1.0 but less than 0.50 to 1.0 [Member] | ' |
Debt Instrument [Line Items] | ' |
Variable interest rate basis | 'LIBOR |
Alternate variable interest rate basis | 'base loan rate |
Range, less than | 0.5 |
Range, greater than or equal to | 0.25 |
Applicable Margin for Base Rate Loans (as a percent) | 0.75% |
Applicable Margin for Eurodollar Loans (as a percent) | 1.75% |
Commitment Fee (as a percent) | 0.38% |
Greater than or equal to 0.50 to 1.0 but less than 0.75 to 1.0 [Member] | ' |
Debt Instrument [Line Items] | ' |
Variable interest rate basis | 'LIBOR |
Alternate variable interest rate basis | 'base loan rate |
Range, less than | 0.75 |
Range, greater than or equal to | 0.5 |
Applicable Margin for Base Rate Loans (as a percent) | 1.00% |
Applicable Margin for Eurodollar Loans (as a percent) | 2.00% |
Commitment Fee (as a percent) | 0.50% |
Greater than or equal to 0.75 to 1.0 but less than 0.90 to 1.0 [Member] | ' |
Debt Instrument [Line Items] | ' |
Variable interest rate basis | 'LIBOR |
Alternate variable interest rate basis | 'base loan rate |
Range, less than | 0.9 |
Range, greater than or equal to | 0.75 |
Applicable Margin for Base Rate Loans (as a percent) | 1.25% |
Applicable Margin for Eurodollar Loans (as a percent) | 2.25% |
Commitment Fee (as a percent) | 0.50% |
Greater than or equal to 0.90 to 1.0 [Member] | ' |
Debt Instrument [Line Items] | ' |
Variable interest rate basis | 'LIBOR |
Alternate variable interest rate basis | 'base loan rate |
Range, greater than or equal to | 0.9 |
Applicable Margin for Base Rate Loans (as a percent) | 1.50% |
Applicable Margin for Eurodollar Loans (as a percent) | 2.50% |
Commitment Fee (as a percent) | 0.50% |
LONGTERM_DEBT_Senior_notes_and
LONG-TERM DEBT (Senior notes and senior subordinated notes) (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 26, 2013 |
Whiting Oil and Gas and Whiting Programs, Inc | 6.5% Senior Subordinated Notes due 2018 [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 6.5% Senior Subordinated Notes due 2018 [Member] | 5% Senior Notes due 2019 [Member] | 5% Senior Notes due 2019 [Member] | 5% Senior Notes due 2019 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | 5.75% Senior Notes due 2021 [Member] | |
Debt disclosures [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on debt instrument (as a percent) | ' | 6.50% | 6.50% | 6.50% | 5.00% | 5.00% | 5.00% | 5.75% | 5.75% | 5.75% | 5.75% |
Notes Issued | ' | ' | ' | $350,000,000 | ' | ' | $1,100,000,000 | ' | ' | $800,000,000 | $400,000,000 |
Estimated fair value of Notes | ' | ' | ' | $364,900,000 | $1,156,400,000 | ' | ' | $1,317,000,000 | ' | ' | ' |
Premium as a percentage of par | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% |
Percentage of ownership in subsidiary | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | ||
Asset Retirement Obligations | ' | ' | |
Asset retirement obligations, current portion | $8,300,000 | $9,700,000 | |
Reconciliation of the Company's asset retirement obligations | ' | ' | |
Balance at the beginning of the period | 126,148,000 | ' | |
Additional liability incurred | 11,570,000 | ' | |
Revisions in estimated cash flows | 26,215,000 | [1] | ' |
Accretion expense | 6,543,000 | ' | |
Obligations on sold properties | -759,000 | ' | |
Liabilities settled | -4,162,000 | ' | |
Balance at the end of the period | $165,555,000 | ' | |
[1] | Revisions in estimated cash flows during the six months ended June 30, 2014 are primarily attributable to increased estimates of future costs for oilfield services and related materials required to plug and abandon wells in certain fields in the Rocky Mountains region. |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Derivative instruments) (Details) (Whiting Petroleum Corporation [Member], Crude oil [Member]) | Jul. 01, 2014 | |
item | ||
Derivative Financial Instruments [Line Items] | ' | |
Aggregate notional amount of price risk derivatives (in Bbl) | 10,104,090 | |
Jan - Dec 2015 [Member] | ' | |
Derivative Financial Instruments [Line Items] | ' | |
Aggregate notional amount of price risk derivatives (in Bbl) | 1,200,000 | |
Derivative, Floor Price (in dollars per Bbl) | 70 | |
Derivative, Strike Price (in dollars per Bbl) | 85 | |
Derivative, Cap Price (in dollars per Bbl) | 107.9 | |
Collars [Member] | Jul - Dec 2014 [Member] | ' | |
Derivative Financial Instruments [Line Items] | ' | |
Aggregate notional amount of price risk derivatives (in Bbl) | 24,090 | |
Derivative, Floor Price (in dollars per Bbl) | 80 | |
Derivative, Cap Price (in dollars per Bbl) | 122.5 | |
Three-way collars [Member] | Jul - Dec 2014 [Member] | ' | |
Derivative Financial Instruments [Line Items] | ' | |
Aggregate notional amount of price risk derivatives (in Bbl) | 8,880,000 | [1] |
Derivative, Floor Price (in dollars per Bbl) | 71.82 | [1] |
Derivative, Strike Price (in dollars per Bbl) | 85.68 | [1] |
Derivative, Cap Price (in dollars per Bbl) | 103.85 | [1] |
[1] | A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The sold call establishes a maximum price (ceiling) Whiting will receive for the volumes under contract. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price. |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Derivative instruments 2) (Details) | 1 Months Ended | 6 Months Ended | 6 Months Ended | ||
Mar. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Whiting USA Trust II Units [Member] | Whiting USA Trust II held by Whiting Petroleum | Whiting USA Trust II held by Whiting Petroleum | Third party public holders of Whiting USA Trust II [Member] | Third party public holders of Whiting USA Trust II [Member] | |
Collars [Member] | Collars [Member] | ||||
Crude oil [Member] | Crude oil [Member] | ||||
Jul - Dec 2014 [Member] | Jul - Dec 2014 [Member] | ||||
item | item | ||||
Derivative Financial Instruments [Line Items] | ' | ' | ' | ' | ' |
Trust units sold to the public (in shares) | 18,400,000 | ' | ' | ' | ' |
Retention of net proceeds from underlying properties (as a percent) | ' | 10.00% | ' | 90.00% | ' |
Aggregate notional amount of price risk derivatives (in Bbl) | ' | ' | 24,090 | ' | 216,810 |
Derivative, Floor Price (in dollars per Bbl) | ' | ' | 80 | ' | 80 |
Derivative, Cap Price (in dollars per Bbl) | ' | ' | 122.5 | ' | 122.5 |
DERIVATIVE_FINANCIAL_INSTRUMEN4
DERIVATIVE FINANCIAL INSTRUMENTS (Embedded commodity derivative contract) (Details) (CO 2 Contract [Member], USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
CO 2 Contract [Member] | ' |
Derivative Financial Instruments [Line Items] | ' |
The estimated fair value of the embedded derivative in this purchase contract asset | $13.30 |
DERIVATIVE_FINANCIAL_INSTRUMEN5
DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of effects of commodity derivative instruments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Derivative Financial Instruments [Line Items] | ' | ' | ' | ' | ||
(Gain) Loss Recognized in Income | $26,076 | ($30,192) | $50,611 | $1,065 | ||
Not Designated as ASC 815 Hedges [Member] | ' | ' | ' | ' | ||
Derivative Financial Instruments [Line Items] | ' | ' | ' | ' | ||
(Gain) Loss Recognized in Income | 26,076 | -30,192 | 50,611 | 1,065 | ||
Commodity contracts [Member] | Loss on hedging activities [Member] | ASC 815 Cash Flow Hedging Relationships [Member] | ' | ' | ' | ' | ||
Derivative Financial Instruments [Line Items] | ' | ' | ' | ' | ||
Loss Reclassified from AOCI into Income (Effective Portion) | ' | -437 | [1] | ' | -648 | [1] |
Commodity contracts [Member] | Commodity derivative (gain) loss, net [Member] | Not Designated as ASC 815 Hedges [Member] | ' | ' | ' | ' | ||
Derivative Financial Instruments [Line Items] | ' | ' | ' | ' | ||
(Gain) Loss Recognized in Income | 17,304 | -23,854 | 27,491 | 10,406 | ||
Embedded commodity contracts [Member] | Commodity derivative (gain) loss, net [Member] | Not Designated as ASC 815 Hedges [Member] | ' | ' | ' | ' | ||
Derivative Financial Instruments [Line Items] | ' | ' | ' | ' | ||
(Gain) Loss Recognized in Income | $8,772 | ($6,338) | $23,120 | ($9,341) | ||
[1] | Effective April 1, 2009, the Company elected to de-designate all of its commodity derivative contracts that had been previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively. As a result, such mark-to-market values at March 31, 2009 were frozen in AOCI as of the de-designation date and were being reclassified into earnings as the original hedged transactions affected income. As of December 31, 2013, all amounts previously in AOCI had been reclassified into earnings. |
DERIVATIVE_FINANCIAL_INSTRUMEN6
DERIVATIVE FINANCIAL INSTRUMENTS (Location and fair value of derivative instruments, assets) (Details) (Not Designated as ASC 815 Hedges [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | $16,817 | [1] | $60,168 | [1] |
Gross Amounts Offset | -3,309 | [1] | -22,478 | [1] |
Total financial assets | 13,508 | [1] | 37,690 | [1] |
Commodity contracts [Member] | Prepaid Expenses and Other [Member] | ' | ' | ||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 2,000 | [1] | 23,752 | [1] |
Gross Amounts Offset | -1,980 | [1] | -22,478 | [1] |
Total financial assets | 20 | [1] | 1,274 | [1] |
Commodity contracts [Member] | Other Long Term Assets [Member] | ' | ' | ||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 1,521 | [1] | ' | |
Gross Amounts Offset | -1,329 | [1] | ' | |
Total financial assets | 192 | [1] | ' | |
Embedded commodity contracts [Member] | Prepaid Expenses and Other [Member] | ' | ' | ||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 447 | [1] | ' | |
Total financial assets | 447 | [1] | ' | |
Embedded commodity contracts [Member] | Other Long Term Assets [Member] | ' | ' | ||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Assets | 12,849 | [1] | 36,416 | [1] |
Total financial assets | $12,849 | [1] | $36,416 | [1] |
[1] | Because counterparties to the Companybs derivative contracts are lenders under Whiting Oil and Gasb credit agreement, which eliminates its need to post or receive collateral associated with its derivative positions, columns for cash collateral pledged or received have not been presented in the tables above. |
DERIVATIVE_FINANCIAL_INSTRUMEN7
DERIVATIVE FINANCIAL INSTRUMENTS (Location and fair value of derivative instruments, liabilities) (Details) (Not Designated as ASC 815 Hedges [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | $27,353 | [1] | $25,960 | [1] |
Gross Amounts Offset | -3,309 | [1] | -22,478 | [1] |
Total financial liabilities | 24,044 | [1] | 3,482 | [1] |
Commodity contracts [Member] | Current Derivative Liabilities [Member] | ' | ' | ||
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 26,024 | [1] | 25,960 | [1] |
Gross Amounts Offset | -1,980 | [1] | -22,478 | [1] |
Total financial liabilities | 24,044 | [1] | 3,482 | [1] |
Commodity contracts [Member] | Non-Current Derivative Liabilities [Member] | ' | ' | ||
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ' | ' | ||
Gross Amounts of Recognized Liabilities | 1,329 | [1] | ' | |
Gross Amounts Offset | ($1,329) | [1] | ' | |
[1] | Because counterparties to the Companybs derivative contracts are lenders under Whiting Oil and Gasb credit agreement, which eliminates its need to post or receive collateral associated with its derivative positions, columns for cash collateral pledged or received have not been presented in the tables above. |
FAIR_VALUE_MEASUREMENTS_Fair_v
FAIR VALUE MEASUREMENTS (Fair value assets and liabilities measured on a recurring basis) (Details) (Recurring Basis [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets | ' | ' |
Total financial assets | $13,508 | $37,690 |
Financial Liabilities | ' | ' |
Total financial liabilities | 24,044 | 3,482 |
Commodity contracts [Member] | ' | ' |
Financial Assets | ' | ' |
Financial assets - current | 20 | 1,274 |
Financial assets - non-current | 192 | ' |
Financial Liabilities | ' | ' |
Financial liabilities - current | 24,044 | 3,482 |
Embedded commodity contracts [Member] | ' | ' |
Financial Assets | ' | ' |
Financial assets - current | 447 | ' |
Financial assets - non-current | 12,849 | 36,416 |
Level 2 [Member] | ' | ' |
Financial Assets | ' | ' |
Total financial assets | 212 | 1,274 |
Financial Liabilities | ' | ' |
Total financial liabilities | 24,044 | 3,482 |
Level 2 [Member] | Commodity contracts [Member] | ' | ' |
Financial Assets | ' | ' |
Financial assets - current | 20 | 1,274 |
Financial assets - non-current | 192 | ' |
Financial Liabilities | ' | ' |
Financial liabilities - current | 24,044 | 3,482 |
Level 3 [Member] | ' | ' |
Financial Assets | ' | ' |
Total financial assets | 13,296 | 36,416 |
Level 3 [Member] | Embedded commodity contracts [Member] | ' | ' |
Financial Assets | ' | ' |
Financial assets - current | 447 | ' |
Financial assets - non-current | $12,849 | $36,416 |
FAIR_VALUE_MEASUREMENTS_Reconc
FAIR VALUE MEASUREMENTS (Reconciliation of changes in the fair value of financial assets (liabilities) designated as Level 3 in the valuation hierarchy)(Details) (Level 3 [Member], USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Level 3 [Member] | ' | ' | ' | ' | ||||
Reconciliation of changes in the fair value of financial assets (liabilities) designated as Level 3 in the valuation hierarchy | ' | ' | ' | ' | ||||
Fair value asset, beginning of period | $22,068 | $26,718 | $36,416 | $23,715 | ||||
Unrealized gains (losses) on embedded commodity derivative contracts included in earnings | -8,772 | [1] | 6,290 | [1] | -23,120 | [1] | 9,293 | [1] |
Fair value asset, end of period | $13,296 | $33,008 | $13,296 | $33,008 | ||||
[1] | Included in commodity derivative (gain) loss, net in the consolidated statements of income. |
FAIR_VALUE_MEASUREMENTS_Signif
FAIR VALUE MEASUREMENTS (Significant unobservable inputs used in the fair value measurement) (Details) (Level 3 [Member], USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Embedded commodity contracts [Member] | Embedded commodity contracts [Member] | Embedded commodity contracts [Member] | ||||||
Minimum [Member] | Maximum [Member] | ||||||||
FAIR VALUE MEASURMENTS [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value asset | $13,296 | $22,068 | $36,416 | $33,008 | $26,718 | $23,715 | $13,296 | ' | ' |
Range of future price of NYMEX crude oil (in dollars per barrel) | ' | ' | ' | ' | ' | ' | ' | 89.78 | 109.47 |
DEFERRED_COMPENSATION_Producti
DEFERRED COMPENSATION (Production participation plan) (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 1995 | Dec. 31, 1994 | Jun. 30, 2014 | Dec. 31, 1995 | Dec. 31, 1994 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | General and administrative expense [Member] | General and administrative expense [Member] | Exploration expense [Member] | Exploration expense [Member] | ||
Deferred Compensation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of overriding royalty interest allocated | ' | ' | ' | 2.00% | ' | ' | 3.00% | ' | ' | ' | ' |
Percentage of oil and gas sales less lease operating expenses and production taxes allocated | ' | 1.75% | 1.75% | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' |
Accrued compensation expense allocation | ' | ' | ' | ' | ' | ' | ' | $23,600,000 | $21,500,000 | $2,300,000 | $2,200,000 |
Additional Deferred Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of employees vesting ratably per year | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution period after date of termination | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount reflected as a current liability | $113,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEFERRED_COMPENSATION_Schedule
DEFERRED COMPENSATION (Schedule of changes in the plan's estimated long-term liability) (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
DEFERRED COMPENSATION [Abstract] | ' |
Long-term Production Participation Plan liability at beginning of the period | $87,503 |
Change in liability for vesting and PUDs assigned upon Plan termination | 25,888 |
Amount reflected as a current liability | -113,391 |
Long-term Production Participation Plan liability at end of the period | ' |
SHAREHOLDERS_EQUITY_AND_NONCON2
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST (6.25% Convertible perpetual preferred stock) (Details) (USD $) | 0 Months Ended | 6 Months Ended | 1 Months Ended | ||
Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2009 | Jun. 30, 2014 | Mar. 31, 2013 | |
Common Stock [Member] | Common Stock [Member] | Convertible perpetual preferred stock [Member] | Convertible perpetual preferred stock [Member] | Convertible perpetual preferred stock [Member] | |
Interest rate on convertible perpetual preferred stock (as a percent) | ' | ' | 6.25% | ' | ' |
6.25% convertible perpetual preferred stock, shares issued | ' | ' | 3,450,000 | 0 | ' |
6.25% convertible perpetual preferred stock, shares issue Price per share (in dollars per share) | ' | ' | $100 | ' | ' |
6.25% convertible perpetual preferred stock, shares outstanding | ' | ' | ' | 0 | 172,129 |
Dividend on preferred stock per share Per annum (in dollars per share) | ' | ' | $6.25 | ' | ' |
Common stock issued on conversion of preferred stock (in shares) | 792,919 | 794,000 | ' | ' | ' |
SHAREHOLDERS_EQUITY_AND_NONCON3
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST (Equity incentive plan) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Stock options [Member] | ' |
Share-based compensation disclosures [Line Items] | ' |
Maximum number of Shares per employee | 600,000 |
Stock Appreciation Rights (SARs) [Member] | ' |
Share-based compensation disclosures [Line Items] | ' |
Maximum number of Shares per employee | 600,000 |
Restricted stock [Member] | ' |
Share-based compensation disclosures [Line Items] | ' |
Maximum number of Shares per employee | 300,000 |
2013 Equity Plan [Member] | ' |
Share-based compensation disclosures [Line Items] | ' |
Number of shares authorized upon shareholder's approval | 5,300,000 |
Number of options available for grant | 5,044,045 |
SHAREHOLDERS_EQUITY_AND_NONCON4
SHAREHOLDERS' EQUITY AND NONCONTROLLING INTEREST (Schedule of noncontrolling interest) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Noncontrolling Interest disclosures [Line Items] | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | $8,132 | $8,184 |
Net income (loss) | -18 | -12 | -36 | -31 |
Balance at the end of the period | $8,096 | $8,153 | $8,096 | $8,153 |
Sustainable Water Resources, LLC [Member] | ' | ' | ' | ' |
Noncontrolling Interest disclosures [Line Items] | ' | ' | ' | ' |
Third party ownership interest (as a percent) | 25.00% | ' | 25.00% | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
INCOME TAXES [Abstract] | ' | ' | ' | ' |
U.S. statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
EARNINGS_PER_SHARE_Narrative_D
EARNINGS PER SHARE (Narrative) (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2013 | Jun. 30, 2013 | |
Restricted stock [Member] | ' | ' |
Shares excluded from Earnings Per Share calculation [Line Items] | ' | ' |
Restricted stock excluded from earnings per share calculation (in shares) | 814,932 | 645,017 |
Stock options [Member] | ' | ' |
Shares excluded from Earnings Per Share calculation [Line Items] | ' | ' |
Stock options excluded from earnings per share calculation (in shares) | 945 | 174 |
EARNINGS_PER_SHARE_Reconciliat
EARNINGS PER SHARE (Reconciliation between basic and diluted earnings per share)(Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Numerator: | ' | ' | ' | ' | ||
Net income available to shareholders | $151,444,000 | $134,956,000 | $260,513,000 | $221,219,000 | ||
Preferred stock dividends | ' | -225,000 | [1] | ' | -494,000 | [1] |
Net income available to common shareholders, basic | 151,444,000 | 134,731,000 | 260,513,000 | 220,725,000 | ||
Denominator: | ' | ' | ' | ' | ||
Weighted average shares outstanding, basic | 118,968 | 117,930 | 118,946 | 117,859 | ||
Numerator: | ' | ' | ' | ' | ||
Net income available to common shareholders, basic | 151,444,000 | 134,731,000 | 260,513,000 | 220,725,000 | ||
Preferred stock dividends | ' | 269,000 | ' | 538,000 | ||
Adjusted net income available to common shareholders, diluted | 151,444,000 | 135,000,000 | 260,513,000 | 221,263,000 | ||
Denominator: | ' | ' | ' | ' | ||
Weighted average shares outstanding, basic | 118,968 | 117,930 | 118,946 | 117,859 | ||
Restricted stock and stock options (in shares) | 1,059 | 267 | 1,099 | 321 | ||
Convertible perpetual preferred stock (in shares) | ' | 704 | ' | 749 | ||
Weighted average shares outstanding, diluted | 120,027 | 118,901 | 120,045 | 118,929 | ||
Earnings per common share, basic (in dollars per share) | $1.27 | $1.14 | $2.19 | $1.87 | ||
Earnings per common share, diluted (in dollars per share) | $1.26 | $1.14 | $2.17 | $1.86 | ||
Decrease in accumulated preferred stock dividends | ' | $40,000 | ' | $40,000 | ||
[1] | For the three and six months ended June 30, 2013, amount includes a decrease of $0.04 million in preferred stock dividends for preferred stock dividends accumulated. |
SUBSEQUENT_EVENT_Details
SUBSEQUENT EVENT (Details) (Subsequent Event [Member], USD $) | 0 Months Ended | |
Jul. 13, 2014 | Jul. 13, 2014 | |
Subsequent Event [Line Items] | ' | ' |
Maximum borrowing capacity of credit facility | ' | $4,500,000,000 |
Maximum aggregate commitments | ' | 3,500,000,000 |
Current borrowing capacity of credit facility | ' | 2,500,000,000 |
Period which breach of contract can be cured | '30 days | ' |
Fee amount if acquisition agreement is terminated | 130,000,000 | ' |
Maximum reimbursement expense | 10,000,000 | ' |
Kodiak Oil & Gas Corporation [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Shares exchanged per each share owned | 0.177 | ' |
Closing price, per share | ' | $13.90 |
Preliminary value of transaction | ' | 6,000,000,000 |
Net debt | ' | 2,200,000,000 |
Delayed Draw Facility [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Maximum borrowing capacity of credit facility | $1,000,000,000 | $1,000,000,000 |