Denver-based Whiting Petroleum Corporation confirmed it has dipped into its credit facility to the tune of $650 million to stay afloat amidst the drastic downturn in oil prices complicated by the coronavirus pandemic.
The company announced over the weekend it took “proactive steps to ensure it has sufficient liquidity to fund ongoing operations.” The announcement stated that the $650 million drawn from the company’s credit facility provides “more than enough liquidity to continue its daily business and satisfy obligations to its employees and vendors with minimal interruption as it considers all alternatives to maximize the value of the company.”
“In light of the extreme volatility in the capital markets and the uncertain outlook for commodity prices and the economy due to the COVID-19 pandemic, we took proactive steps to mitigate financial risk from capital market externalities and preserve our liquidity,” stated Bradley J. Holly, Whiting’s Chairman, President and CEO. “This step follows on our recent announcement to significantly reduce capital spending and enhance our cash flow.”
The company is focused on its upcoming note maturities and is aware that certain of its noteholders have engaged legal and financial advisors in light of these maturities. Whiting leadership said the company is engaging collaboratively with its noteholders and other stakeholders as it explores all options to improve its capital structure.
Source: Business Wire