U.S. shale oil and gas producers Oasis Petroleum Inc. and Whiting Petroleum Corp. are close to agreeing to an all-stock merger that could be announced as soon as this week, a source familiar with the matter said on March 6.
UPDATE:
Whiting, Oasis Petroleum to Combine in $6 Billion ‘Merger of Equals’ - updated 8:49 a.m. CST March 7
The combined value of the two companies would be around $6.07 billion, according to Reuters calculations based upon closing prices on March 4, which valued Oasis at $2.8 billion and Whiting at $3.27 billion.
The person with knowledge of the matter spoke on condition of anonymity in order to discuss private information.
The deal talks between the pair, which both operate in the Bakken shale formation of North Dakota, come amid a significant spike in crude oil prices on the back of the Russian invasion of Ukraine.
Both Brent and U.S. benchmarks temporarily hit their highest levels since 2008 as trading began the week in Asia, as the U.S. and European allies mulled a Russian oil import ban in response to the conflict, which Russia calls a “special operation.”
The Wall Street Journal had earlier reported the talks between Oasis and Whiting.
Oasis Petroleum and Whiting Petroleum did not immediately respond to a request for comment.
Both companies filed for Chapter 11 bankruptcy in 2020 after the energy industry reeled under an unprecedented crash in oil prices due to the COVID-19 pandemic, with Whiting the first publicly traded shale producer to file for bankruptcy when it did so in April of that year.
Last year, oil and gas pipeline operator Crestwood Equity Partners LP said it would buy Oasis Petroleum’s midstream unit in a $1.8 billion deal.
Recommended Reading
CGG to Change Name to Viridien
2024-05-17 - The company’s new ticker symbol will be “VIRI” and listed on Euronext Paris, effective May 21.
Sector’s Appetite for Capital Remains Amid Consolidation Frenzy, Panelists Say
2024-05-17 - There’s still an appetite for capital in the oil and gas sector—companies just need to think creatively to find it, a number of panelists said during SUPER DUG in Fort Worth, Texas.
SilverBow Resets Shareholder Meeting After $2.1B Crescent Deal
2024-05-16 - SilverBow Resources said it will adjourn its May 21 shareholders’ meeting until May 29 following Crescent Energy’s agreement to buy the Eagle Ford operator.
Blue Racer Midstream Prices Senior Notes Offering
2024-05-15 - Net proceeds from the sale of senior notes will be used to pay off debt and other general corporate purposes.
Petrobras CEO Prates to Step Down
2024-05-15 - Brazil’s President Luiz Inácio Lula da Silva has requested that Petrobras CEO Jean Paul Prates resign following a dispute over dividend payments.