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.
