Whiting Petroleum chief executive Brad Holly is set to leave the US shale independent when it emerges from Chapter 11 bankruptcy, which is expected on 1 September,
Holly and other Whiting executives had come under fire recently for taking millions of dollars in bonuses before the company filed for bankruptcy.
In a statement issued Friday, the company said Holly would resign "to pursue other interests following the company’s restructuring".
Holly will be succeeded by Lynn Peterson, the former chief executive of Kodiak Oil & Gas, which Whiting famously acquired in 2014 for $3.8 billion in stock, making it the largest Bakken shale producer at the time.
But the deal was ill-timed, as the price of oil dropped from around $115 per barrel in June of 2014 to about $70 in December of that year. The rout has continued and prices are currently around $42 per barrel.
The price drop, along with Whiting's assumption of Kodiak's $2.2 billion in debt, weighed on the company's finances.
Peterson most recently served as chief executive of SRC Energy before its combination with PDC Energy in January of this year.
Chapter 11 hearing due
A hearing to consider confirmation of Whiting's Chapter 11 plan is scheduled for Friday, and if the bankruptcy court confirms the plan, the company expects to exit restructuring on 1 September.
Whiting also expects to install a new independent board of directors consisting of three women and three men, including Kayne Anderson chairman Kevin McCarthy, former ConocoPhillips general counsel Janet Carrig, and former Rice Energy chief executive Daniel Rice. Peterson will serve as a seventh member.
"As we emerge from Chapter 11, the company has significantly reduced its leverage and strengthened its balance sheet," Peterson said.
"Moving forward, we expect to focus on the development of our top-tier Bakken acreage, further reducing our leverage, and driving down operating and (general and administrative) costs.
"This should position the company well for the anticipated industry consolidation that we expect to see in the coming years, particularly in the opportunity-rich landscape of the Williston basin."
Holly had been accused of sexual misconduct and harassment at his previous employer, Anadarko Petroleum, which he left in 2017 for the Whiting job. Holly strenuously denied any claims of misconduct.
Anadarko has since been taken over by Occidental Petroleum.