DENVER--(BUSINESS WIRE)--Jul. 31, 2019-- Whiting Petroleum Corporation (NYSE: WLL) today announced that it has conducted a comprehensive assessment of its organization, operations and cost structure and is implementing an organizational redesign and cost reduction strategy to better align Whiting’s business with the current operating environment and drive long term value.

The restructuring is focused on the following initiatives:

  • Redesign the Company’s organization to improve costs and enhance execution;
  • Streamline operations to expedite the delivery of peer leading returns and free cash flow;
  • Implement new technologies and processes in the field to enhance operational efficiency; and
  • Invest in best in class data and technology to enhance planning and strategic insight which should lead to superior operational and financial performance.

In connection with this restructuring, the Company has reduced its workforce by 33%, or 254 positions. Of this total, 94 positions are executive and corporate positions.

Whiting expects the restructuring to result in $50 million of annual cost savings. The cost reductions also include various non-employee expenses. In connection with this, the Company expects to incur a one-time charge of approximately $8 million in the third quarter of 2019.

“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,” said Bradley J. Holly, Whiting’s President, Chairman and Chief Executive Officer. “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. 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.”