Oasis, Whiting Petroleum said near all-stock merger - WSJ

Mar. 06, 2022 8:11 PM ETWhiting Petroleum Corporation (WLL), OASFANGBy: Joshua Fineman, SA News Editor4 Comments

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Oasis Petroleum (NASDAQ:OAS) and Whiting Petroleum (NYSE:WLL) are said close to a merger between the rival North Dakota shale drillers.

The all-stock transaction may announced as soon as this week, according to a WSJ report. The combined companies would be valued at about $6B.

The potential transaction comes after Oasis and Whiting filed for Chapter 11 bankruptcy in 2020 under the weight of a weak oil price and weak demand during the pandemic. A deal comes as oil prices are jumping sharply Sunday as fighting continues in Ukraine and an evacuation ceasefire fails to materialize. WTI crude (CL1:COM) (NYSEARCA:USO) +9% is above $125 for the first time since 2008.

Last May, Oasis exited the Permian basin, selling all of its Permian Basin position in a $481M deal. The same month Oasis agreed to acquire Williston Basin assets from Diamondback Energy (NASDAQ:FANG) for $745M.

Whiting (WLL) in July agreed to acquire oil and gas assets in North Dakota's Williston Basin while selling all its oil and gas assets in the Denver-Julesburg Basin of Colorado.

Last month, Oasis Petroleum's return of capital plan included a new $150M stock buyback.

Last month, Whiting Q4 results -- earnings beat, no update on previously released guidance.

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