Whiting Petroleum Corporation Announces Completion of Offering of $1.9 Billion of Senior Notes Due 2019 and 2021
DENVER--(BUSINESS WIRE)-- Whiting Petroleum Corporation (NYSE: WLL ) today announced that it completed a public offering of $1.9 billion aggregate principal amount of senior notes consisting of the following:
• $1.1 billion of senior notes that mature on March 15, 2019 and bear interest at an annual rate of 5.000%, and
• $800.0 million of senior notes that mature on March 15, 2021 and bear interest at an annual rate of 5.750%.
Whiting received net proceeds of approximately $1.8775 billion from the offering, after deducting the underwriting discount and commissions and estimated expenses of the offering. Whiting expects to use the net proceeds from this offering to repay all of the debt outstanding under Whiting Oil and Gas Corporation’s credit agreement, to fund its $260.0 million acquisition of Williston Basin assets, to retire its $250.0 million of outstanding 7.0% Senior Subordinated Notes due 2014 on or prior to their maturity on February 1, 2014 and for general corporate purposes including capital expenditures.
Wells Fargo Securities, LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch acted as the joint book-running managers for the offering.
The offering was made only by means of a prospectus supplement and accompanying prospectus, which are part of an effective shelf registration statement Whiting filed with the Securities and Exchange Commission, copies of which may be obtained from Wells Fargo Securities, LLC by calling (800) 326-5897, J.P. Morgan Securities LLC by calling (866) 803-9204 or BofA Merrill Lynch at 222 Broadway, 11th Floor, New York, NY 10038, Attention: Prospectus Department, or at firstname.lastname@example.org. An electronic copy of the prospectus supplement and accompanying prospectus are available from the Securities and Exchange Commission’s website at www.sec.gov.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor will there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, is an independent oil and gas company that explores for, develops, acquires and produces crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain, Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States. The Company’s largest projects are in the Bakken and Three Forks plays in North Dakota and its Enhanced Oil Recovery field in Texas. The Company trades publicly under the symbol WLL on the New York Stock Exchange.
This news release contains statements that we believe to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe” or “should” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.
These risks and uncertainties include, but are not limited to: declines in oil, natural gas liquids or natural gas prices; our level of success in exploration, development and production activities; adverse weather conditions that may negatively impact development or production activities; the timing of our exploration and development activities; our ability to obtain sufficient quantities of CO2 necessary to carry out our enhanced oil recovery projects; inaccuracies of our reserve estimates or our assumptions underlying them; revisions to reserve estimates as a result of changes in commodity prices; risks related to our level of indebtedness and periodic redeterminations of the borrowing base under our credit agreement; our ability to generate sufficient cash flows from operations to meet the internally funded portion of our capital expenditures budget; our ability to obtain external capital to finance exploration and development operations and acquisitions; federal and state initiatives relating to the regulation of hydraulic fracturing; the potential impact of federal debt reduction initiatives and tax reform legislation being considered by the U.S. Federal government that could have a negative effect on the oil and gas industry; our ability to identify and complete acquisitions and to successfully integrate acquired businesses, including our ability to complete the Williston Basin acquisition on the anticipated timeline and terms; unforeseen underperformance of or liabilities associated with acquired properties, including the properties subject to the Williston Basin acquisition; our ability to successfully complete potential asset dispositions and the risks related thereto; the impacts of hedging on our results of operations; failure of our properties to yield oil or gas in commercially viable quantities; uninsured or underinsured losses resulting from our oil and gas operations; our inability to access oil and gas markets due to market conditions or operational impediments; the impact and costs of compliance with laws and regulations governing our oil and gas operations; our ability to replace our oil and natural gas reserves; any loss of our senior management or technical personnel; competition in the oil and gas industry in the regions in which we operate; risks arising out of our hedging transactions; and other risks described under the caption “Risk Factors” in our final prospectus supplement, dated September 9, 2013. We assume no obligation, and disclaim any duty, to update the forward-looking statements in this news release.
John B. Kelso, 303-837-1661
Director of Investor Relations
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