Whiting Petroleum (WLL) Announces 2020 Guidance, Organizational Changes

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.

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