Whiting intends to improve costs and enhance execution, streamline operations, accelerate returns and free cash flow, deploy new technologies and processes to enhance operational efficiency
Image: Whiting has reduced 33% of its workforce, as part of its restructuring. Photo: Courtesy of Free-Photos from Pixabay.
Whiting Petroleum announced its plans to implement an organisational redesign and cost reduction strategy to better align Whiting’s business with the current operating environment and drive long term value.
Whiting said that it has made the announcement following a comprehensive assessment of its organisation, operations and cost structure.
Whiting president, chairman and chief executive officer Bradley J. Holly said: “We aim to be as efficient as possible and that is why we made the difficult decision to reduce our workforce in order to realize significant annualized cost savings.
“As the oil and gas industry landscape continues to evolve and investor focus shifts to prioritize predictable capital returns, we see a tremendous opportunity to transform Whiting into a leading, value-focused developer of unconventional assets with a commitment to safety, cost-efficiency, disciplined capital expenditure and maximizing returns.”
Whiting intends to carry out the restructuring focused on several initiatives
The company would redesign its organisation to improve costs and enhance execution, streamline its operations to accelerate the delivery of peer leading returns and free cash flow, and deploy new technologies and processes in the field to enhance operational efficiency.
In addition, the company intends to invest in advanced data and technology to strengthen its planning and strategic insight that could lead to improved operational and financial performance.
As part of the restructuring, the company will reduce its workforce by 33%. It will layoff 254 positions, of which 94 positions are of executive and corporate positions.
Whiting said that the restructuring is expected to result in $50m (£41m) of annual cost savings, which also includes various non-employee expenses.
Holly added: “The decision to reduce headcount is always a difficult one as it impacts talented colleagues and friends, but it is a necessary step in our company’s transformation.
“I want to express my sincere appreciation for the employees affected by today’s announcement and their many contributions to Whiting. Consistent with Whiting’s Values, we are committed to treating those impacted fairly and respectfully and are providing support to make this transition as smooth as possible.”