Whiting Petroleum Corporation

Whiting Petroleum Corporation's well has run dry, as the Denver-based company became the first big independent oil producer in the U.S. to succumb in large part due to the coronavirus pandemic.

The company had been due to repay $262m on a convertible bond on Apr. 1, 2020 but instead filed for Chapter 11 bankruptcy protection in the state of Texas. CreditRiskMonitor® subscribers with Whiting Petroleum in their portfolio would have been able to see that the company's FRISK® score had been sitting at an alarming "1" since the beginning of 2020:

Whiting FRISK image

The adverse economic effects of COVID-19 and the ongoing Russia-Saudi Arabia oil price war are combining to make the oil and gas industry - and the energy sector as a whole - as volatile as it has been in many years. This Bankruptcy Case Study plainly reveals why now is the perfect time to schedule a demo with CreditRiskMonitor and stay ahead of bankruptcy risk in your portfolio. 

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Our FRISK® score model incorporates four powerful risk inputs:

  • “Merton”-type model of stock market capitalization and volatility
  • Financial ratios, including those used in the Altman Z”-Score Model
  • Bond agency ratings from Fitch, Moody's, and DBRS Morningstar
  • Website click pattern data from CreditRiskMonitor® subscribers, representing key credit decision-makers at more than 35% of current Fortune 1000 companies plus thousands of other large companies worldwide

Since the start of 2017, the FRISK® score’s rate of success in capturing public company bankruptcy is 96%: 235 identified out of 243 bankruptcies. In any given year, you can count on one hand the times we miss – and in those outlier cases, the circumstances deal with unusual, unforeseen events such as natural disasters and CEO fraud.

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About Bankruptcy Case Studies

CreditRiskMonitor® Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using our proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. Our proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor® Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.