Whiting Petroleum Spotlights 3Q Financial, Operational Results

Whiting Petroleum's production in the third quarter of 2010 totaled a record 6.08 million barrels of oil equivalent (MMBOE), of which 4.94 MMBOE were crude oil/condensate (81%) and 1.14 MMBOE was natural gas (19%). This third quarter 2010 production total equates to a new record daily average production rate of 66,120 barrels of oil equivalent (BOE), and represents a 19% increase over the 55,760 BOE per day average rate in the third quarter of 2009. Compared to the second quarter of 2010, average daily production rose 2%. The production increases in the third quarter of 2010 were primarily the result of organic production growth in Whiting's North Dakota Bakken play.

Financial Results – Third Quarter 2010

Whiting reported third quarter 2010 net income available to common stockholders of $5.6 million, or $0.12 per basic and diluted share, on total revenues of $373.7 million. This compared to third quarter 2009 net income available to common shareholders of $30.9 million, or $0.59 per basic and diluted share, on total revenues of $269.3 million.

The Company's 2010 third quarter results included a charge of $47.5 million, or $0.91 per basic and diluted share, for the cash premium associated with the induced conversion of Convertible Perpetual Preferred Stock and after-tax unrealized derivative losses of $14.3 million, or $0.27 per basic and diluted share. Excluding the cash premium on induced conversion of preferred stock, derivative losses and certain other items, Whiting reported third quarter 2010 adjusted net income available to common stockholders of $71.6 million, or $1.40 per basic share and $1.30 per diluted share. This compared to third quarter 2009 adjusted net income available to common shareholders of $15.8 million, or $0.29 per basic and diluted share. A reconciliation of adjusted net income available to common shareholders versus net income available to common shareholders is included later in this news release.

Discretionary cash flow in the third quarter of 2010 totaled $229.5 million, up 57% from the $145.9 million reported for the same period in 2009. The increase in discretionary cash flow in the third quarter of 2010 versus the comparable 2009 period was primarily the result of a 19% increase in the Company's net production as well as a 17% increase in the Company's realized oil price (net of hedging). A reconciliation of discretionary cash flow to net cash provided by operating activities is included later in this news release.

Operating and Financial Results - First Nine Months 2010

Production in the first nine months of 2010 totaled 17.3 MMBOE, or 63,550 BOE per day, representing a 15% increase over the 15.1 MMBOE, or 55,140 BOE per day, in the first nine months of 2009.

For the nine months ended September 30, 2010, Whiting reported net income available to common stockholders of $206.8 million, or $4.04 per basic share and $4.00 per diluted share, on total revenues of $1.1 billion. This compared to a net loss available to common stockholders of $106.0 million, or a per share net loss, basic and diluted, of $2.15, on total revenues of $663.3 million in the first nine months of 2009. Excluding the cash premium on the induced conversion of preferred stock, after-tax unrealized derivative gains and losses and certain other items, Whiting reported adjusted net income available to common shareholders of $206.3 million, or $4.05 per basic share and $3.76 per diluted share, in the first nine months of 2010. This compared to an adjusted net loss available to common shareholders of $12.1 million, or $0.26 per basic and diluted share, in the comparable 2009 period.

Discretionary cash flow in the first nine months of 2010 totaled $672.2 million. This total represents a 105% increase over the $327.6 million of discretionary cash flow generated in the first nine months of 2009.

James J. Volker, Whiting's Chairman, President and CEO, commented, "Our results so far in 2010 and the position we are in for the remainder of the year and for the next few years are exciting. We have added a new resource play with our Lewis & Clark prospect and continue to actively lease in the Rocky Mountain region. We have assembled a total of 552,127 net acres in the Rockies that we believe to be prospective in the Bakken and Three Forks formations. Our current book cost for this acreage is approximately $93.0 million, or $168 per net acre. In addition, the production performance of our Bakken play in North Dakota continues to outstrip our previous well results in the area. Companywide, our production is heavily weighted toward oil at 81% of our total production, and oil currently sells at an approximate 23 to 1 ratio to the price of natural gas."

Mr. Volker continued, "We expect our discretionary cash flow to exceed our capital expenditures in the foreseeable future. Our discretionary cash flow in the first nine months totaled $672.2 million, exceeding our $540.4 million of capital expenditures in the first nine months. We used a portion of the excess cash flow in the first nine months to pay down bank debt. At September 30, 2010, borrowings on our $1.1 billion credit facility totaled $100 million, resulting in approximately $1 billion of availability."

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