BY Fraser Tennant
Although owing billions and having filed for Chapter 11, US oil & gas company Whiting Petroleum Corporation has completed a financial restructuring and emerged from bankruptcy protection.
The company concluded its reorganisation after completing all required actions and satisfying the remaining conditions to its plan of reorganisation. Furthermore, Whiting says its new capital structure will reduce debt by $3bn and includes a new $750m reserve-based revolving credit facility, set to mature in April 2024.
In connection with emergence from Chapter 11, all of Whiting’s existing equity interests will be cancelled and cease to exist. Shares of the company’s new common stock commenced trading on the New York Stock Exchange from 2 September.
Whiting was one of the first large oil companies to fall victim to the onset of the coronavirus (COVID-19) pandemic, filing for Chapter 11 bankruptcy protection in April.
The restructuring will also see a new board of directors take the helm. The new board includes chairman Kevin McCarthy and chief executive Lynn Peterson. In addition, James Henderson has been appointed as chief financial officer.
“We are excited to begin our new chapter at Whiting, with a focus on capital discipline and free cash flow generation to create long-term value for our shareholders,” said Ms Peterson. “On behalf of the Company and newly appointed board of directors, I would like to thank our employees for their patience and dedication during this process.”
Founded in 1980, Whiting Petroleum is an independent oil and gas company that develops, produces, acquires and explores for crude oil, natural gas and natural gas liquids primarily in the Rocky Mountain region of the US. The company’s largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado.