Whiting Petroleum Successfully Emerges from Chapter 11 with Streamlined Balance Sheet

Denver — Whiting Petroleum Corporation (NYSE: WLL) has officially completed its financial reorganization and exited Chapter 11 bankruptcy protection, marking a significant milestone for the independent oil and gas producer. The restructuring delivered a substantial $3.0 billion reduction in funded debt, positioning the company for a return to profitability and operational stability.

New Capital Framework Takes Shape

The company’s restructured balance sheet reflects a leaner, more sustainable capital position. A newly established $750 million reserve-based revolving credit facility will mature in April 2024, replacing the previous borrowing arrangement. At emergence, approximately $425 million was drawn from this facility, with the first borrowing base redetermination scheduled for April 1, 2021.

The restructuring involved converting approximately $2.4 billion in pre-petition senior unsecured notes into equity, a pivotal move that fundamentally altered the company’s debt profile. Holders of unsecured claims, including senior noteholders, received proportionate distributions of 97% of Whiting’s newly issued common stock, subject to dilution.

Equity Structure and Shareholder Position

Whiting emerged with approximately 38.1 million common shares outstanding from an authorized base of 500 million shares. Existing shareholders experienced significant dilution, receiving 1 share of reorganized Whiting common stock for approximately every 75 shares previously held.

The capital structure also includes warrant instruments designed to provide additional upside potential. The company issued approximately 4.8 million Series A Warrants exercisable at $73.44 per share (expiring September 1, 2024) and 2.4 million Series B Warrants exercisable at $83.45 per share (expiring September 1, 2025).

An additional 3.1 million shares remain reserved pending resolution of certain general unsecured claims whose valuations are still under determination.

Balance Sheet Transformation

Prior to restructuring, Whiting carried approximately $3.4 billion in total debt as of March 31, 2020. The reorganization eliminated the entirety of the senior unsecured debt portfolio, which included:

• 1.250% Convertible Senior Notes due 2020 ($187 million)
• 5.750% Senior Notes due 2021 ($774 million)
• 6.250% Senior Notes due 2023 ($408 million)
• 6.625% Senior Notes due 2026 ($1.0 billion)

Liquidity improved substantially, with the company maintaining approximately $13 million in unrestricted cash after accounting for near-term working capital requirements.

Leadership Changes Bring Fresh Direction

Lynn Peterson assumes the Chief Executive Officer role, succeeding the previous management team. “We are excited to begin our new chapter, with a focus on capital discipline and free cash flow generation to create long-term value for our shareholders,” Peterson stated.

James Henderson joins as Chief Financial Officer, bringing extensive experience from his previous role at SRC Energy and prior positions at Kodiak Oil & Gas and Anadarko Petroleum Corporation. Henderson replaces Correne S. Loeffler, who departed following the reorganization.

Chip Rimer continues as Chief Operating Officer, providing continuity in operational leadership.

Board Composition Refreshed

The newly appointed Board of Directors comprises seven members: Kevin McCarthy (Chairman), Lynn Peterson (CEO), Janet L. Carrig, Susan Cunningham, Paul Korus, Daniel Rice, and Anne Taylor. This reconstituted board brings diverse expertise to guide the reorganized company through its recovery phase.

Market Return Underway

All existing equity interests were cancelled effective September 2, 2020, prior to market opening. The company’s new common stock commenced trading on the New York Stock Exchange under ticker symbol “WLL” on the same date, marking Whiting Petroleum’s return to public markets following its restructuring completion.

Strategic Positioning

Whiting Petroleum, an independent oil and gas company focused on crude oil, natural gas, and natural gas liquids production, maintains significant operations in the Rocky Mountain region. The company’s core projects are concentrated in the Bakken and Three Forks plays in North Dakota and the Niobrara play in northeast Colorado. With its recapitalized balance sheet and experienced management team, Whiting is positioned to optimize its asset base and operational efficiency in the current energy environment.