Whiting Petroleum files for bankruptcy
US shale company Whiting Petroleum has officially filed for bankruptcy. The producer is the first oil company to go under during the current prices crisis.
Whiting Petroleum is among the leading producers in North Dakota. The company has stated that the creditors have approved the reduction of its debt by around US$2.2 billion in exchange for 97% of its shares. The current stakeholders are going to get 3% of the company after the reorganization.
Shares of Whiting have lost 44% of their value and dropped to 37 cents. The company’s market value is currently at US$61.5 million. In 2011, at its peak, it was at US$15 billion. At the end of 2019 the company had debts worth US$2.8 billion.
United States has experienced a significant boost of oil production over the last three years. The production has risen to around 13 million barrels daily. However, the current oil price crisis, that started after a failed OPEC meeting, is putting a strong pressure on the producers, while the market is flooded with cheap crude.