Whiting Petroleum (NYSE: WLL) will have a new CEO and a new board when it emerges from Chapter 11 bankruptcy reorganization. Current CEO and chair Brad Holly will lead the oil company through reorganization, set for Sept. 1.

Whiting attorneys described the plan for a change in leadership change at the Friday hearing in federal bankruptcy court in Houston. They also plan to reduce $2.4 billion in debt.

Judge David Jones agreed to the amended Whiting reorganization plan on Friday. He complimented all parties involved in the successful negotiation. And he was also glad that they were able to manage the process with virtual hearings due to COVID 19.

“This gives a second chance to people, which is what this country is all about … and it saved jobs. My hat’s off to all of you,” Judge Jones said, noting he had lost five people in the pandemic that he regularly saw in his courtroom. 

Whiting petroleum filed Chapter 11

Denver-based Whiting Petroleum Corp.(NYSE: WLL) filed for bankruptcy on April 1 after its worst quarterly performance. The bankruptcy filing came just before the maturity of convertible debt notes.

Whiting was already struggling amid Saudi Arabia's and Russia’s price war which left the oil market in disarray. The decreasing demand for energy in the wake of the pandemic ruined any prospect of recovery. 

With the oil and gas industry starting credit redetermination, Whiting was concerned that the deterioration of global markets would limit its access to funding from its revolving credit. At the urging of many of its large bondholders, Whiting filed for bankruptcy.

The company filed in the Southern District of Texas for Chapter 11 protection from its creditors. They listed debts of $3.6 billion and assets worth $7.6 billion in the bankruptcy petition.

Whiting has 500 employees. Exploration and oil and gas production are primarily on 557,000 acres in North Dakota’s Williston Basin. They also work in the Denver-Julesburg Basin of Colorado.

The new hands-on deck at Whiting

With the exit of Brad Holly, Lynn Peterson will take the helm. Peterson was CEO and chair of Denver-based SRC Energy Inc. When he becomes CEO he will also join Whiting’s board. Peterson led SRC Energy until January when it merged with PDC Energy.

He has previously been CEO of Kodiak Oil, a major producer in North Dakota’s Bakken oilfields. In 2014, Kodiak was acquired by Whiting Petroleum.

James Catlin, Whiting’s lead director said in a statement that Holly’s work on the restructuring that will leave the company “with a stronger balance sheet and improved cost structure.”

“During this period of unprecedented volatility for the industry, Whiting set the standard for executing on a challenging business plan,” Catlin added.

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