Changes Expected to Generate Approximately $20 Million in Annual Cost Savings
Whiting Petroleum Corporation (NYSE:WLL) ("Whiting" or the "Company") announced today that it has evaluated and reduced its cost structure to better align Whiting's business with the current operating environment. The Company is also updating its 2020 guidance to reflect an increased focus on capital discipline.
Organizational Update
Whiting recently implemented a new organizational structure whereby the Company has reduced its total workforce by 16%, of which over 90% were corporate positions. Whiting expects these changes to the organization to generate approximately $20 million in annualized cost savings. In conjunction with the reorganization, Whiting is reducing the compensation of its officers by 15% to 20%, realigning officer bonus programs, reducing the number of corporate executives, and initiating salary reductions across a broad group of employees. The full impact of these G&A reductions is expected to be realized in 2021, while the effect in 2020 is largely expected to be offset by related one-time charges.
Outlook for 2H 2020
As the Company has emerged from restructuring and is responding to the current environment, it is updating its guidance for the second half of 2020. The following table provides guidance for the second half 2020 based on current forecasts.
"I'm pleased with what we have accomplished in bringing on a new board, new leadership and new vision for the Company post emergence. The changes implemented are building a culture of capital discipline and demonstrating efficiencies and cost savings throughout the organization. We look forward to announcing preliminary 2021 guidance in conjunction with our third quarter 2020 results," said Lynn A. Peterson, Chief Executive Officer of Whiting.
About Whiting Petroleum Corporation
Whiting Petroleum Corporation, a Delaware corporation, 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 United States. The Company's largest projects are in the Bakken and Three Forks plays in North Dakota and Niobrara play in northeast Colorado. The Company trades publicly under the symbol WLL on the New York Stock Exchange. For further information, please visit http://www.whiting.com.
Forward-Looking Statements
This news release contains statements that we believe to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts, including, without limitation, statements regarding our future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and debt levels, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as we "expect," "intend," "plan," "estimate," "anticipate," "believe" or "should" or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.
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