UPDATE 1-Whiting Petroleum posts Q4 loss as costs spike, sees output rising

Wed Feb 26, 2014 5:04pm EST

Feb 26 (Reuters) - Oil and natural gas producer Whiting Petroleum Corp posted a quarterly loss on Wednesday as the company said its exploration, production and interest costs spiked, but met Wall Street expectations.

For the fourth quarter, Whiting posted a net loss of $59.3 million, or 50 cents per share, compared with a net profit $81.4 million, or 69 cents per share, in the year-ago period.

Like many of its peers developing U.S. shale fields, Whiting continues to spend massively to find and extract oil and natural gas reserves. For 2014, the company expects to spend $2.7 billion on capital projects.

The spending should help the company's production jump at least 10 percent "for the foreseeable future," Chief Executive James Volker said in a statement.

Excluding impairment charges, hedging costs and other one-time items, the company earned 88 cents per share. By that measure, the company's adjusted profit met Wall Street's expectations, according to Thomson Reuters I/B/E/S.

Revenue rose 25 percent to $720.5 million, topping expectations. The company's production rose 17 percent to 100,960 barrels of oil equivalent per day.

Whiting said exploration and impairment charges more than tripled in the quarter to $325.4 million and interest expense more than doubled to $43.4 million.

Shares of Denver-based Whiting rose 2.4 percent in after-hours trading on Wednesday. The stock has gained 24 percent in the past six months.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.