Denver-based Whiting Petroleum, which had donated millions to Colorado political campaigns, has filed for Chapter 11 bankruptcy reorganization.

Whiting kicked in $2.5 million in 2018 to Protect Colorado, the major fund-raising group behind Amendment 74. That constitutional amendment would have required the state or local governments to compensate property owners for lost mineral revenues resulting from state or local regulations. The campaign in favor raised more than $11 million. The measure failed, 53.58% opposed to 46.42% in favor. 

Whiting campaign contributions have also backed Republican candidates over the past decade, including George Brauchler’s failed bid for attorney general and Walker Stapleton’s failed bid for governor, both in 2018.

In a news release Wednesday announcing the bankruptcy fling, the company said it has “more than $585 million of cash on its balance sheet and will continue to operate its business in the normal course without material disruption to its vendors, partners or employees.

“Whiting currently expects to have sufficient liquidity to meet its financial obligations during the restructuring without the need for additional financing.”

Whiting’s two largest operations are in the Bakken and Three Forks fields in North Dakota and the Niobrara field in northeast Colorado.

Whiting CEO and President Bradley J. Holly attributed the decision to both declining oil and gas prices and the COVID-19 pandemic.

“Given the severe downturn in oil and gas prices driven by uncertainty around the duration of the Saudi/Russia oil price war and the COVID-19 pandemic, the Company’s Board of Directors came to the conclusion that the principal terms of the financial restructuring negotiated with our creditors provides the best path forward for the Company,” he said. “We are pleased to have secured a highly constructive restructuring framework with a critical mass of our noteholders. Through the terms of the proposed restructuring, we believe a right-sized balance sheet will enable us to capitalize on our enhanced cost structure, high-quality asset base and successfully compete in the current environment.”

The price per barrel for West Texas crude on Wednesday is at $20.40. 

The reorganization plan is an agreement in principle with some of the company’s noteholders, which will “significantly reduce the Company’s debt and establish a more sustainable capital structure pursuant to a consensual chapter 11 plan of reorganization that would be supported” those holders.

The plan will provide significant de-leveraging of the company’s capital structure, payment in full in cash and/or refinancing of Whiting’s revolving credit facility, payment in full in cash of all other secured creditors, tax and other priority claimants, and employees; and allows Whiting’s existing equity holders 3% of the new equity of the reorganized company and warrants.

The plan is subject to confirmation by the Bankruptcy Court in addition to other conditions to be set forth in the Plan and related transaction documents.

The Denver Business Journal reported Tuesday that Noble Energy, the state’s 2nd largest oil producer, was reducing its workforce by 30%.

The filing was first reported by Bloomberg News’ Javier Bias via Twitter.