Whiting and Oasis Announce $6 Billion Merger Deal
Whiting Petroleum Corporation (NYSE:WLL) and Oasis Petroleum Inc. (NASDAQ:OAS) announced on Monday that they have entered into an agreement to combine in a merger of equals transaction.
The combined company will have a premier Williston Basin position with top tier assets across approximately 972,000 net acres, combined production of 167,800 barrels of oil equivalent per day, significant scale, cost synergies and enhanced free cash flow generation to return capital to shareholders.
Under the terms of the agreement, Whiting shareholders will receive 0.5774 shares of Oasis common stock and $6.25 in cash for each share of Whiting common stock owned, Oasis said in a release. In connection with the closing of the transaction, Oasis shareholders will receive a special dividend of $15.00 per share.
The combined company will have an enterprise value of around $6 billion based on the exchange ratio and the closing share prices for Whiting and Oasis as of March 4. Upon completion of the transaction, Whiting shareholders will own approximately 53% and Oasis shareholders will own approximately 47% of the combined company on a fully diluted basis.
Upon closing of the deal, Whitings President and CEO, Lynn Peterson, will serve as Executive Chair of the Board of Directors of the combined company, the company noted. Oasis CEO, Danny Brown, will serve as President and CEO and as a member of the Board. The combined company will be headquartered in Houston, Texas upon closing but will retain the Denver, Colorado office for the foreseeable future. The combined company will operate under a new name and is expected to trade on the Nasdaq under a new ticker to be announced prior to closing.
The combination will bring together two excellent operators with complementary and high-quality assets to create a leader in the Williston Basin, poised for significant and resilient cash flow generation, said Brown in a statement. Over the last year, both companies have executed a series of deliberate strategic transactions, reducing costs and establishing a leading framework for ESG and return of capital. The combination of the two companies, together with the ongoing momentum from these strategic actions, will accelerate our efforts and ideally position the combined company to generate strong free cash flow, execute a focused strategy and enhance the return of capital.
Oasis noted that the combined company will be well-positioned to succeed in a dynamic earnings and profits environment. It will be a premier operator in the Williston Basin, combining high quality assets with low breakeven pricing operated by an experienced team. The combined company expects to produce 164 million to169 million barrels of oil per day in 2022.