Executive Summary

Revenue rose to $527 million, up $53 million sequentially, driven by higher commodity prices; adjusted net income was $185 million ($4.61 diluted EPS) and adjusted EBITDAX was $248 million, indicating strong underlying performance despite hedging impacts .
GAAP net loss of $37 million (-$0.95 diluted EPS) was primarily due to a $428.7 million non-cash derivative loss; cash from operations remained robust at $209 million, and adjusted free cash flow was $150 million .
Production averaged 89.0 MBOE/d (oil 52.4 MBO/d), down modestly due to transitory downstream ethane recovery impacts; management maintained 2022 annual production guidance of 91.0–95.0 MBOE/d .
Strategic catalysts: announced merger of equals with Oasis remains on track for 2H22 closing, creating a scaled Williston Basin leader; closed a $240 million Mountrail County asset acquisition during Q1, funded with cash and revolver borrowings .

What Went Well and What Went Wrong

What Went Well

Adjusted net income rose to $185 million ($4.61 diluted EPS) from $168 million ($4.23) in Q4; adjusted EBITDAX increased to $248 million from $226 million, reflecting stronger pricing and disciplined operations .
Robust cash generation: $209 million cash from operations and $150 million adjusted free cash flow; debt remained low at $50 million as of March 31, preserving balance sheet strength .
Strategic progress: Oasis merger expected to create a premier Williston Basin energy company with enhanced free cash flow capacity; management emphasized growing returns of capital post-combination .
- “We recently announced our first fixed dividend… with the expectation of growing our total return of capital significantly in the coming quarters through buybacks and other strategies.” — Lynn A. Peterson, CEO (Q4) .

What Went Wrong

GAAP loss due to hedging: $428.7 million non-cash derivative loss and $141.5 million cash settlements on commodity derivatives drove the GAAP net loss; adjusted results strip these effects .
Cost pressure: LOE rose to $73 million ($9.05/BOE) vs $62 million ($7.31/BOE) in Q4, due to inflation and increased workovers; G&A increased to $19 million, including ~$6.1 million merger-related costs .
Wider-than-expected oil differentials tied to prior-period revenue adjustments from leasehold reallocation near the Missouri River; management expects improvement back within annual guidance averages .

Financial Results

Headline P&L and Cash Metrics (YoY and QoQ)

Metric	Q1 2021	Q4 2021	Q1 2022
Revenue ($USD Millions)	$307.4	$473.4	$526.9
GAAP Diluted EPS ($)	-$0.02	$7.34	-$0.95
Adjusted Diluted EPS ($, non-GAAP)	$2.79	$4.23	$4.61
Net Income (Loss) ($USD Millions)	-$0.9	$292.2	-$37.4
Cash from Operations ($USD Millions)	$153.2	$213.9	$208.6
Adjusted Free Cash Flow ($USD Millions, non-GAAP)	$108.2	$156.3	$150.4
Adjusted EBITDAX ($USD Millions, non-GAAP)	$170.2	$226.4	$248.5
Net Income Margin (%)	-0.3% (−$0.9 / $307.4)	61.7% ($292.2 / $473.4)	-7.1% (−$37.4 / $526.9)
Adjusted EBITDAX Margin (%)	55.4% ($170.2 / $307.4)	47.8% ($226.4 / $473.4)	47.2% ($248.5 / $526.9)

Operating KPIs and Costs

KPI	Q1 2021	Q4 2021	Q1 2022
Total Production (MBOE)	8,090	8,535	8,008
Oil Production (MBbl)	4,822	4,871	4,720
NGLs (MBbl)	1,559	1,946	1,692
Natural Gas (MMcf)	10,249	10,303	9,575
Oil Price Received ($/Bbl)	53.24	75.75	91.05
Oil Realized Price ($/Bbl, incl. hedges)	45.08	55.37	64.32
Gas Price Received ($/Mcf)	2.05	3.68	3.37
Gas Realized Price ($/Mcf, incl. hedges)	2.06	1.53	2.06
LOE ($USD Millions)	59.3	62.4	72.5
LOE ($/BOE)	7.34	7.31	9.05
G&A ($USD Millions)	10.3	15.3	18.6
G&A ($/BOE)	1.27	1.79	2.32
Capex ($USD Millions)	55.6	66.0	91.0
Debt ($USD Millions)	245.0 (long-term at 3/31/21)	0 (12/31/21)	50.0 (long-term at 3/31/22)

Segment breakdown: Not applicable; operations concentrated in Bakken/Three Forks without reported segments .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Average Production (MBOE/d)	FY 2022	91.0–95.0 (prior)	91.0–95.0	Maintained
Oil Differential vs WTI	FY 2022	Prior guidance (range not disclosed)	Expect annual average within previous guidance; improvement through year	Maintained/Improving
Funding of Operations & Dividend	FY 2022	Fund within operating cash flow (prior)	Continue funding within operating cash flow	Maintained
Borrowing Base	Revolver	$750M reaffirmed (Apr 2021)	$750M; $50M borrowings as of 12/31/21 (referenced in Q1 release)	Maintained

Earnings Call Themes & Trends

Note: No Q1 2022 earnings call transcript was available in the document set; themes reflect press releases and prior quarter commentary.

Topic	Previous Mentions (Q3 & Q4 2021)	Current Period (Q1 2022)	Trend
Commodity Prices & Hedging	Strengthening prices; hedging cash settlements impacted realized prices and reported earnings	Higher commodity prices lifted revenue; large non-cash derivative loss and $141.5M cash settlements impacted GAAP results	Improving pricing; hedging headwind persists
Capital Allocation & FCF	Emphasis on generating substantial FCF; path to zero debt by YE21	$150M adjusted FCF; capex up to $91M; continued funding of dividend within operating cash flow	Strong FCF; increased activity
Production Operations	Stable 92–93 MBOE/d in 2H21; cost controls improved LOE	89.0 MBOE/d; ethane recovery and winter weather affected volumes; annual guidance maintained	Near-term dip; guidance intact
M&A/Portfolio	Q4 commentary on acquisitions and inventory adds	$240M Mountrail County acquisition closed; merger with Oasis on track	Scaling; portfolio depth
Differentials & Midstream	Ongoing differential and midstream considerations	Oil differentials wider due to leasehold reallocation; improvement expected	Improving through FY22
ESG/Return of Capital	Initiation of fixed dividend; intent to grow total returns	Dividend funding within operating cash flow; post-merger enhanced FCF to return capital	Stable/Positive

Management Commentary

“2021 was an eventful year… generated over $500 million of adjusted free cash flow… and ended the year completely debt free… We recently announced our first fixed dividend… with the expectation of growing our total return of capital significantly in the coming quarters through buybacks and other strategies.” — Lynn A. Peterson, President & CEO (Q4 2021 press release) .
“The team continues to execute… substantial cash provided by operating activities of $190 million during the quarter… expects to continue to generate substantial free cash flow during the fourth quarter and end the year with no debt.” — Lynn A. Peterson (Q3 2021 press release) .
Q1 2022 strategic message: Merger of equals with Oasis expected to create a premier Williston Basin company with significant scale and enhanced free cash flow generation to return capital to shareholders; target closing in 2H22, subject to approvals .

Q&A Highlights

No Q1 2022 earnings call transcript was located in the available documents; Q&A highlights and any guidance clarifications are therefore unavailable from primary sources in this set.

Estimates Context

S&P Global consensus estimates for WLLAW were unavailable due to a missing Capital IQ mapping for this ticker; as a result, estimate-based comparisons could not be provided. Values retrieved from S&P Global.*

Key Takeaways for Investors

Strong underlying quarter: Adjusted EPS of $4.61 and adjusted EBITDAX of $248 million on $527 million revenue show operational momentum despite hedging headwinds .
Hedging drove GAAP noise: A $428.7 million non-cash derivative loss and $141.5 million cash settlements reduced GAAP earnings; underlying cash generation remained robust ($209 million CFO, $150 million adjusted FCF) .
Costs rose with activity and inflation: LOE increased to $9.05/BOE and $72.5 million; G&A included ~$6.1 million merger costs—watch cost trajectory as activity scales .
Production dipped short term but guidance intact: 89.0 MBOE/d vs 92.8 MBOE/d in Q4 due to ethane recovery and winter weather; FY22 guidance 91.0–95.0 MBOE/d maintained .
Strategic scaling via M&A: $240 million Mountrail County acquisition closed and Oasis merger proceeding—post-close should enhance FCF and return-of-capital capacity .
Differentials a watch item: Wider oil differentials tied to leasehold reallocation pressured realizations; management expects improvement back within guidance averages through FY22 .
Near-term trading setup: Expect volatility around hedging impacts and oil differentials; focus on adjusted metrics and cash generation, merger approvals, and any updated capital return disclosures .

Whiting Holdings LLC (WLLAW)·Q1 2022 Earnings Summary