Whiting Petroleum posts 2Q loss, cuts workforce
Whiting Petroleum will implement an organizational redesign that includes a workforce reduction of 33%, a loss of 254 positions. In a separate release, the firm reported an adjusted net loss of $25.7 million for the second quarter.
Whiting Petroleum Corp., Denver, will implement an organizational redesign that includes a workforce reduction of 33%. In separate releases, the company said it will cut its workforce by 254 positions—94 at the executive and corporate level—and reported a second quarter adjusted net loss of $25.7 million, down from the $57.3 million gain a year earlier.
The company expects the restructuring to result in a cost savings of $50 million/year. The cost reductions also include various non-employee expenses. In connection, Whiting expects to incur a one-time charge of $8 million in this year’s third quarter.
“In the face of highly volatile commodity prices and a constrained gas infrastructure market in North Dakota, we are taking strong measures to improve our margins and deliver on our goal of generating peer leading free cash flow. Our strategic plan is designed to deliver a better cost structure and more consistent results,” said Bradley J. Holly, Whiting’s chairman, president, and chief executive officer.
Second quarter production totaled 11.6 million boe, an average of 127,090 boe/d. Crude oil and natural gas liquids comprised 65% and 17% of this total, respectively. Williston basin production averaged 113,191 boe/d. Redtail field production averaged 13,137 boe/d. Infrastructure constraints and associated operating delays reduced this production by 3,000 b/d, and the constraints are projected to persist through the remainder of the year, the company said.
In the Foreman Butte area, Whiting put its first 11 wells on production during the quarter. They produced an average of 910 b/d/well over the first 30 days on production. Whiting purchased the Foreman Butte area, which encompasses 54,833 net acres, for $130 million in July 2018. The property had 1,290 boe/d at the time of purchase.