Whiting Petroleum reduces debt-to-total cap ratio via debt reduction

By Jennifer Lanning Drey

Portland, Ore., Aug. 23 - Whiting Petroleum Corp. has reduced its debt-to-total cap ratio to 20.9% by paying down debt in 2009 and 2010, James J. Volker, its chief executive officer, said during a Monday presentation at EnterCom, Inc.'s the Oil and Gas Conference in Denver.

The CEO also said during the presentation that Whiting is on its way to what it hopes will be a next-12-months discretionary cash flow of over $1 billion.

The company has an $830 million exploration and development budget for 2010, the bulk of which will be spent in the Northern Rockies, he said.

Of the $830 million, 44% will be directed toward finding new reserves, with the remainder going to the proved, developed and producing categories, he said.

Volker also noted that Whiting has made acquisitions from time to time and considers them to be "key and strategic" for the company.

As previously reported, Whiting recently announced it will redeem all of its $150 million of 7¼% senior subordinated notes due 2012 and all of its $220 million of 7¼% senior subordinated notes due 2013 on Sept. 8. The company plans to finance the redemption with borrowings under its credit agreement, Volker said.

Additionally, on Aug. 17, the company began an exchange offer for its $345 million of 6.25% convertible perpetual preferred stock.

Whiting Petroleum is a Denver-based oil and gas company.

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