Richard Zeits • 54 Comments
Richard Zeits • 34 Comments
Atticvs Research • 14 Comments
Mar. 23, 2015, 5:37 PM
- Whiting Petroleum (NYSE:WLL) -10.8% AH after announcing a public offering of 35M common shares, with an underwriters option to purchase up to an additional 5.25M shares; WLL also announces private offerings of $1B of convertible senior notes due 2020 and $750M of senior notes due 2023.
- WLL says it expects to use the proceeds from the offerings to repay all or part of the amount outstanding under its credit agreement and any remainder for general corporate purposes.
- The offerings may signal the company is not seeking to sell itself outright, as the cost of an acquisition would rise dramatically.
Mar. 16, 2015, 10:17 AM
- Street chatter says Statoil (STO -2.8%) may be pursuing EOG Resources (EOG +0.5%) in a merger or acquisition that could exceed $50B.
- Analysts say the deal would make sense for STO, which is seeking to expand its U.S. shale presence; STO also has been mentioned as one of several companies showing interest in Whiting Petroleum (WLL -8%).
- Color Raymond James analyst Andrew Coleman skeptical, saying that a 25% premium over EOG's recent $85 share price - suggesting an offer near $60B - would be needed just to get a returned phone call.
Mar. 13, 2015, 3:58 PM
- Whiting Petroleum (WLL +3.1%) spikes on a Bloomberg report suggesting Exxon Mobil (XOM -0.2%) could be interested in the company; trading is now halted for volatility.
- Continental Resources (CLR -4.8%), Hess (HES +0.4%) and Statoil (STO +1.4%) also are reportedly looking at WLL, according to the report, and WLL has set up a data room for potential buyers to evaluate the company’s financial information and asked them to submit bids next week.
- WLL is the largest producer in North Dakota’s Bakken Shale, and the four rumored suitors already are among the 10 largest holders of acreage in the play.
- WLL had been down all day on an earlier report that it was considering selling off pieces rather than the whole company.
Mar. 13, 2015, 2:53 AM
- Whiting Petroleum (NYSE:WLL) has put Texas acreage and pipeline assets up for sale as an alternative to a sale of the full company, Reuters reports.
- JPMorgan has shopped the full company in recent days to select parties, however, several potential acquirers' interest in buying all of Whiting was tepid due to concerns about the company's $5.63B debt load.
- The strategy could also appease investors outraged by the possibility of an outright sale.
- Previously: WSJ: $5.8B Whiting Petroleum seeking a buyer (Mar. 06 2015)
Mar. 6, 2015, 8:26 PM
- Whiting Petroleum (NYSE:WLL) -- pressed by the tanking price of crude oil, and having cut its 2015 capex in half -- is for sale, The Wall Street Journal reports.
- The $5.8B company just closed on its $3.8B acquisition of Kodiak Oil and Gas in December but is now entering its own auction process, sources say -- although with no clear suitors on the horizon.
- Whiting considered a sale in 2012 but backed off without finding its asking price. Now Whiting joins Penn Virginia on the auction block.
- Pressed by debt and impairment charges for undeveloped properties, the stock has tumbled 61% over the past six months, -8.6% over the past three.
- Previously: Whiting Petroleum posts Q4 miss, cuts 2015 capex in half as output grows (Feb. 25 2015)
Sep. 30, 2014, 10:34 AM
- The positive market reaction following Encana's deal for Athlon Energy and other recent transactions may put pressure on inventory short majors and other large-cap companies to pursue M&A activity to increase their quality inventory in the U.S. onshore market, according to a UBS report.
- UBS lists six top potential targets, some of which already are swirling in the rumor mill, including Pioneer Natural Resources (NYSE:PXD), with its own fracking fleet and huge Midland Basin play making it a very attractive but expensive target.
- The firm's other five top M&A candidates: COG, CXO, OAS, RRC, WLL.
Jul. 15, 2014, 12:45 PM
- Whiting Petroleum (WLL -0.5%) and Kodiak Oil & Gas (KOG +0.2%) don't just share prolific Williston Basin oil fields; they also share many of the same investors - with five of WLL's top 10 shareholders also among KOG's top 10 - which should help them win shareholder approval for their proposed merger despite WLL’s $3.8B bid valuing KOG at a discount to Friday’s closing stock price, SunTrust analysts say.
- Wells Fargo analysts add that KOG CEO Lynn Peterson has much of his net worth in wrapped up in the company, and that Peterson and his team have tried unsuccessfully for years to sell the company.
- KOG is upgraded to Buy with a $17.70 price target at Wunderlich, believing the stock should trade in tandem with WLL, on which the firm has a $100 price target.
Jul. 14, 2014, 3:45 PM
- Shares of Whiting Petroleum (WLL +7.8%) surge to a new all-time high as analysts agree that WLL pulled off a great deal for Kodiak Oil & Gas (KOG +4.6%), paying ~2% less than KOG's Friday close and just 5% above the 60-day average (earlier).
- WLL’s story grows even more compelling with an accretive deal that gives it a premier position in both the Bakken and Niobrara that should boost growth dramatically, likely with improved metrics across the board that already are at compelling levels vs. peers, Wunderlich says in reiterating its Buy rating.
- In raising its price target to $102, Brean Capital says it would not be surprised to see a competing bid for KOG, but assuming the deal closes as currently constituted, its opinion of WLL is only enhanced as the most attractive opportunity in its coverage universe (Briefing.com).
- Meanwhile, KOG’s decision to sell now is “curious,” according to Sterne Agee's Tim Rezvan, with a Q2 earnings miss possibly explaining the move; KOG has not set a date to release Q2 results.
Jul. 14, 2014, 2:21 PM
- Whiting Petroleum's (WLL +7.4%) $6B buyout of Kodiak Oil & Gas (KOG +5.1%) is renewing investor attention on independent energy firms with operations in the Bakken Shale, especially those significantly owned by hedge funds; Paulson & Co. is the single biggest owner of KOG stock, with just under 10% of shares outstanding as of the last filing date.
- While many of the largest Bakken producers are huge companies or parts of huge companies - Hess (NYSE:HES), EOG, Statoil (NYSE:STO), Marathon Oil (NYSE:MRO), XTO Energy (NYSE:XOM) - a few small and mid-cap independent players show hedge fund interest, CNBC's Brian Sullivan writes.
- The single biggest holder of Oasis Petroleum (OAS +0.5%) also is John Paulson's hedge fund, which owns 9.9M shares (~9.8% of shares outstanding), Jana Partners owns 16M-plus shares in QEP Resources (QEP +1.4%), and WPX Energy (WPX +1.1%) has substantial hedge fund ownership.
Jul. 14, 2014, 1:44 AM
- Whiting Petroleum (WLL) will acquire Kodiak Oil & Gas (KOG) creating North Dakota's largest Bakken shale producer. During the first quarter, total combined output of the two companies was more than 107k barrels of oil per day from the Bakken/Three Forks formations.
- The deal is valued at $6B, including $3.8B in stock and $2.2B in net debt, and is expected to close in Q4. Kodiak shareholders will receive 0.177 share of Whiting stock for each share of Kodiak common stock they own.
- "It's going to allow our production at the combined company to grow faster than Whiting standalone did before," says Whiting CEO James Volker. "The combined company will have greater access to capital which will accelerate development of oil production."
Sep. 17, 2013, 5:05 PM
- In an apparent delayed reaction, companies mentioned as possible takeover targets for Repsol (REPYY.PK, REPYF.PK) as it reportedly looks to make a North American oil acquisition in the $5B-$10B range moved higher today.
- After showing only mild action yesterday, Whiting Petroleum (WLL +3.7%) and Kodiak Oil & Gas (KOG +1.6%) posted strong gains gains; strength in SandRidge Energy (SD +6%) also may have been sparked by Respol speculation, although SD wasn't mentioned in this weekend's WSJ article.
Sep. 16, 2013, 11:45 AM
- Repsol (REPYY.PK -1%) is downgraded to Neutral by Credit Suisse after a WSJ weekend report that the Spanish oil major is ready to spend $5B-$10B for a U.S. or Canadian E&P company.
- Credit Suisse says Repsol is likely to conduct a careful search for the right buyer or buyers for its €4.5B ($5.97B) stake in Gas Natural.
- While the WSJ report is long-term positive for Repsol, in the short term its effect is muted by the need to complete the Gas Natural divestment first, as financing for Spanish corporations remains relatively expensive.
- Shares of potential U.S. targets Kodiak Oil & Gas (KOG +0.8%) and Whiting Petroleum (WLL +0.2%) show slight gains.
Sep. 15, 2013, 7:38 PM
- Repsol (REPYY.PK) is looking to spend $5-$10B on a North American E&P company as the Spanish oil major seeks to gain a foothold in "stable-market" economies after the Argentina debacle imperiled the company's investment-grade rating, WSJ says.
- Companies mentioned in the article as possible targets based on their size and perceived willingness to pursue a deal include Whiting Petroleum (WLL) and Kodiak Oil & Gas (KOG) - those names may get a lift from the article come Monday.
Jun. 24, 2013, 9:06 AM
BreitBurn Energy Partners (BBEP) agrees to acquire Whiting Petroleum's (WLL) interests in the Postle and North East Hardesty oilfields, along with associated midstream assets, in the Oklahoma panhandle for ~$860M. The acquired properties add ~7,400 boe/day (87% oil, 11% nat gas liquids) net production as of April 2013. BBEP +2.4%, WLL +0.3% premarket.| Jun. 24, 2013, 9:06 AM
Nov. 8, 2012, 11:03 AM
Nov. 8, 2012, 8:44 AM
Whiting Petroleum (WLL) +11.3% premarket on a report that Statoil (STO) approached the company with a takeover bid worth up to $7.6B. WLL and STO are among the top producers in the Bakken shale formation in North Dakota, and STO has said it wants to pick up further shale acreage in the U.S.| Nov. 8, 2012, 8:44 AM | 3 Comments