Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Whiting's Buy Shows How The Bakken Is Changing

Whiting Petroleum's (NYSE:WLL) announcement that it had reached an agreement to acquire Kodiak Oil & Gas (NYSE:KOG) was surprising on several levels. First, Whiting isn't offering much of a premium to Kodiak's standalone net asset value. Second, a lot of investors have been assuming (or perhaps hoping) that consolidation in the Bakken would take the form of large energy companies coming in to buy large operators like Continental Resources (NYSE:CLR), Whiting, and Oasis (NYSE:OAS), not peer-to-peer consolidation. Third, this is a deal that is more about execution and efficiency than exploration growth, perhaps marking a recognition of real change.

All told, assuming the deal gets done on the announced terms, it's...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details