The stock recently traded at 21.67 cents, down 49%. It has lost 93% of its value this year.
“Due to historically low global energy demand and commodity prices, we determined that it is best for Oasis Petroleum to take decisive action to strengthen our liquidity and overcome the headwinds now challenging both our company and industry,” the Houston company's chief executive, Thomas Nusz, said in a statement.
The company said it filed the Chapter 11 petition in U.S. Bankruptcy Court for the Southern District of Texas.
Oasis has entered a restructuring-support agreement with substantially all its lenders on its revolving-credit facility and holders of 52% of the face amount of its bonds regarding a comprehensive prepackaged restructuring, Oasis said in a statement.
Its lenders have committed $450 million of debtor-in-possession financing.
“Through this financial restructuring, Oasis Petroleum intends to reduce its total indebtedness by $1.8 billion, representing 100% of its senior unsecured notes and senior unsecured convertible notes,” it said.
When it leaves Chapter 11, Oasis said, it expects to have $340 million of borrowings under its credit facility.
It expects to complete an accelerated restructuring process and exit Chapter 11 in November, subject to the bankruptcy court's approval.
The coronavirus pandemic and the plunge in energy demand and prices this year hammered most energy companies.
A number of other energy companies have filed for protection from creditors in Chapter 11.
"We remain committed to the highest standards" related to "environmental stewardship, safety and operational excellence," CEO Nusz said.
"We expect to continue our operations as normal.”