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Whiting, Oasis to Tie Up & Create Top Williston Producer
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Whiting Petroleum Corporation and Oasis Petroleum Inc. jointly announced that both the companies signed agreements to combine in a $6-billion merger of equals transaction. The news of the transaction sent Whiting’s shares up some 1.8% to close at $84.96 and Oasis’ shares up around 5.5% to $152.45.
The companies stated that the merged entity will have the leading Williston Basin position in North Dakota and Montana, with top tier assets spanning over 972,000 net acres and an output of about 167,800 barrels of oil equivalent per day, an improved free cash flow generation and a substantial scale of operations.
Per the terms of the transaction, Whiting shareholders will be given 0.5774 shares of OAS common stock and $6.25 in cash for each share of WLL stock held. Oasis shareholders will receive a special dividend of $15.00 per share ahead of the close. On the closing of the deal, which is expected to be done by the second half of this year, Whiting and Oasis shareholders will own approximately 53% and 47% in the merged company, respectively.
Moreover, upon completion, Whiting’s President and CEO, Lynn Peterson, will serve as the Executive Chair of the Board of the merged entity, while Oasis’ CEO, Danny Brown, will become the President and CEO and also serve as a member of the Board. The combined company will be based in Houston, TX and will operate under a new name and trade under a new ticker, both of which will be declared in due time, per the companies.
Both the companies were hit hard by the pandemic-induced commodity price and demand destruction and were forced to declare bankruptcy in 2020. WLL and OAS subsequently restructured and emerged from Chapter 11 by management overhaul, cutting costs and cleaning up their balance sheets. Interestingly, at the time of the merger agreement, the commodity was trading near $120 a barrel – the highest since 2008.
Founded in 1980, Denver, CO-based Whiting Petroleum Corporation is an independent energy company engaged in the exploration, development and production of crude oil and natural gas properties in the United States. With the majority of its output coming from the Bakken play, it holds one of the largest acreage positions in the region.
Established in 2007, Houston, TX-based Oasis Petroleum is an independent explorer, engaged in the acquisition and development of oil and natural gas resources. The company’s asset base is primarily focused on the North Dakota and Montana regions of the Williston Basin, targeting the Bakken and Three Forks formations. Its total leasehold position in the Williston Basin consists of around 497,000 net acres. OAS’ top-tier operated locations provide an inventory life of more than 12 years, with break-even prices between $30 and $45 per barrel.
Both Whiting and Oasis currently carry a Zacks Rank #2 (Buy). Apart from these two, investors interested in the energy exploration and production space might look at the following companies. Civitas Resources (CIVI - Free Report) and Centennial Resource Development , each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Civitas is valued at around $4.7 billion. The Zacks Consensus Estimate for Civitas’ 2022 earnings is projected at $13.53 per share, up about 117.3% from the projected year-ago earnings of $6.23.
CIVI beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 95.2%.
The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.34 per share, which is an increase of approximately 94.2% from the projected year-ago earnings of 69 cents.
Centennial stock has rallied 93% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share has been revised from $1.10 to $1.34, up about 21.8%, in the past 60 days.
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Whiting, Oasis to Tie Up & Create Top Williston Producer
Whiting Petroleum Corporation and Oasis Petroleum Inc. jointly announced that both the companies signed agreements to combine in a $6-billion merger of equals transaction. The news of the transaction sent Whiting’s shares up some 1.8% to close at $84.96 and Oasis’ shares up around 5.5% to $152.45.
The companies stated that the merged entity will have the leading Williston Basin position in North Dakota and Montana, with top tier assets spanning over 972,000 net acres and an output of about 167,800 barrels of oil equivalent per day, an improved free cash flow generation and a substantial scale of operations.
Per the terms of the transaction, Whiting shareholders will be given 0.5774 shares of OAS common stock and $6.25 in cash for each share of WLL stock held. Oasis shareholders will receive a special dividend of $15.00 per share ahead of the close. On the closing of the deal, which is expected to be done by the second half of this year, Whiting and Oasis shareholders will own approximately 53% and 47% in the merged company, respectively.
Moreover, upon completion, Whiting’s President and CEO, Lynn Peterson, will serve as the Executive Chair of the Board of the merged entity, while Oasis’ CEO, Danny Brown, will become the President and CEO and also serve as a member of the Board. The combined company will be based in Houston, TX and will operate under a new name and trade under a new ticker, both of which will be declared in due time, per the companies.
Both the companies were hit hard by the pandemic-induced commodity price and demand destruction and were forced to declare bankruptcy in 2020. WLL and OAS subsequently restructured and emerged from Chapter 11 by management overhaul, cutting costs and cleaning up their balance sheets. Interestingly, at the time of the merger agreement, the commodity was trading near $120 a barrel – the highest since 2008.
Founded in 1980, Denver, CO-based Whiting Petroleum Corporation is an independent energy company engaged in the exploration, development and production of crude oil and natural gas properties in the United States. With the majority of its output coming from the Bakken play, it holds one of the largest acreage positions in the region.
Established in 2007, Houston, TX-based Oasis Petroleum is an independent explorer, engaged in the acquisition and development of oil and natural gas resources. The company’s asset base is primarily focused on the North Dakota and Montana regions of the Williston Basin, targeting the Bakken and Three Forks formations. Its total leasehold position in the Williston Basin consists of around 497,000 net acres. OAS’ top-tier operated locations provide an inventory life of more than 12 years, with break-even prices between $30 and $45 per barrel.
Both Whiting and Oasis currently carry a Zacks Rank #2 (Buy). Apart from these two, investors interested in the energy exploration and production space might look at the following companies. Civitas Resources (CIVI - Free Report) and Centennial Resource Development , each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Civitas is valued at around $4.7 billion. The Zacks Consensus Estimate for Civitas’ 2022 earnings is projected at $13.53 per share, up about 117.3% from the projected year-ago earnings of $6.23.
CIVI beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being around 95.2%.
The Zacks Consensus Estimate for Centennial’s 2022 earnings is projected at $1.34 per share, which is an increase of approximately 94.2% from the projected year-ago earnings of 69 cents.
Centennial stock has rallied 93% in a year. The Zacks Consensus Estimate for CDEV’s 2022 earnings per share has been revised from $1.10 to $1.34, up about 21.8%, in the past 60 days.