Whiting Petroleum Shares Plunge After Chapter 11 Bankruptcy Filing Driven By Oil, Gas Downturn

Whiting Petroleum WLL shares were cratering Wednesday after the company announced a voluntary Chapter 11 bankruptcy filing. 

The company said it has more than $585 million of cash on its balance sheet and will continue to operate its business as normal without material disruption. 

Chapter 11 of the bankruptcy code generally provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

Whiting Petroleum is a company engaged in hydrocarbon exploration and is headquartered in Denver, Colorado.

“Given the severe downturn in oil and gas prices driven by uncertainty around the duration of the Saudi-Russia oil price war and the COVID-19 pandemic, the company’s board of directors came to the conclusion that the principal terms of the financial restructuring negotiated with our creditors provides the best path forward for the company,” CEO Bradley Holly said in a statement. 

"Through the terms of the proposed restructuring, we believe a right-sized balance sheet will enable us to capitalize on our enhanced cost structure, high-quality asset base and successfully compete in the current environment."

Whiting Petroleum shares were trading down 44.65% at 37 cents at the time of publication. The stock has a 52-week high of $30.94 and a 52-week low of 33 cents per share.