(RTTNews) - Whiting Petroleum Corporation (WLL), an independent oil and gas company engaged in the development, production and acquisition of crude oil, NGLs and natural gas primarily in the Rocky Mountains region of the U.S. and Oasis Petroleum Inc. (OAS), an independent exploration and production company with quality and sustainable long-lived assets in the Williston Basin, on Monday announced they have entered into an agreement to merge.
The combined company would operate under a new name and is expected to trade on the Nasdaq under a new ticker to be announced prior to closing.
The new entity would have an enterprise value of about $6.0 billion based on the exchange ratio and the closing share prices for Whiting and Oasis as of March 4, 2022.
Upon completion of the transaction, Whiting shareholders would own approximately 53 percent and Oasis shareholders would own approximately 47 percent of the combined company on a fully diluted basis.
Under the terms of the agreement, Whiting shareholders would receive 0.5774 shares of Oasis common stock and $6.25 in cash for each share of Whiting common stock owned. In connection with the closing of the transaction, Oasis shareholders would receive a special dividend of $15.00 per share.
The combined company will have a premier Williston Basin position with top tier assets across approximately 972K net acres, combined production of 167.8 thousand boepd, significant scale and enhanced free cash flow generation to return capital to shareholders.
Upon closing, Whiting's President and CEO, Lynn Peterson, would serve as Executive Chair of the Board of the combined company. Oasis' CEO, Danny Brown, would serve as President and Chief Executive Officer. It would be headquartered in Houston upon closing but will retain the Denver office for the foreseeable future.
The transaction is expected to be accretive to key per-share metrics and generate administrative and operational cost synergies of approximately $65MM annually.
The deal is expected to close in the second half of 2022.
Citi is serving as financial advisor and Kirkland & Ellis LLP is serving as legal advisor to Whiting. Tudor, Pickering, Holt & Co. and RBC Capital Markets LLC are serving as financial advisors and Vinson & Elkins LLP is serving as legal advisor to Oasis.
Shares of Whiting Petroleum are currently trading in pre-market at $87.99, up $4.56 or 5.47 percent from previous close.
Shares of Oasis Petroleum are currently trading in pre-market at $153.60, up $9.11 or 6.30 percent from previous close.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
