Whiting Petroleum Corp. (NYSE: WLL) spent 42% of its annual capex in the first quarter of 2015 but made a dent in its goal of divesting $1 billion in assets with the sale of older, noncore properties.

Whiting said it sold conventional, operated and nonoperated properties to a private buyer for $108 million. The properties span 187 fields across 14 states.

While the sale may not be what stockholders were hoping for, Whiting is reportedly shopping its midstream assets, which could bring far greater proceeds.

The divested assets were transferred to Whiting in January from Whiting USA Trust I. The trust was created to acquire and hold interest in Whiting properties in the Rocky Mountains, Midcontinent, Permian Basin and Gulf Coast regions.

James J. Volker, Whiting’s chairman, president and CEO, said that the company had solid results in the Bakken/Three Forks and Niobrara despite cutting rigs.

“As a result of stronger production growth in the first quarter, our production guidance is 59.1 MMboe for 6% year-over-year production growth, despite the $108 million asset sale,” Volker said. “Our capital expenditures decline sharply in the second half of 2015.”

Mike Kelly, senior analyst, Global Hunter Securities, said Whiting posted its strongest ever Bakken results at 166,930 net barrels of oil equivalent per day (boe/d) in the first quarter of 2015.

The company also projected a meaningful drop in well costs to $6.5 million from $8.5 million in fiscal year 2014. That should “enable the company to produce compelling rates of return in the Bakken, even at today's prices,” Kelly said.

The asset sale aligns with the company’s 2015 divestiture goals, with Whiting receiving $49,100/flowing boe and $13.17/boe for reserves. Lease operating expenses on the divested assets were pegged at $25/boe, which is far higher than the $6.50 seen in the Bakken and $9 in the Niobrara, Kelly said.

Whiting’s liquidity is in focus after recent financing. The company is facing an outspend of up to $1 billion but has a reaffirmed borrowing base of $4.5 billion.

The asset sale “bolsters liquidity modestly but likely leaves investors somewhat disappointed and still waiting for the larger midstream monetization of $800 million to $1 billion, said Daniel Katzenberg, analyst, Baird Energy.

Whiting plans to spend $2 billion in 2015, down 50% from the collective capex of Whiting and Kodiak Oil & Gas Corp. in 2014.

“This spending will be front-end loaded, including $835 million last quarter, with a significant drop in activity later this year,” said Robert Du Boff, analyst, Oppenheimer.

Whiting will run 11 rigs in the second half of 2015, with nine in the Bakken and two in the Niobrara.

“Unlike many peers, it has no plans to defer completions this year,” he said.

Contact the author, Darren Barbee, at dbarbee@hartenergy.com.