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Oasis and Whiting announce ~$6.0b merger of equals

Mar. 07, 2022 8:24 AM ETCHRDBy: SA News Team10 Comments

Oil Pipeline

SteveOehlenschlager/iStock via Getty Images

As rumored Sunday, Oasis Petroleum (NASDAQ:OAS) and Whiting Petroleum (NYSE:WLL) have announced plans to combine in a $6.0b merger of equals. The transaction will create one of the largest operators in the Bakken, and allow the

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Comments (10)

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Ohhhhhh wonder if this will end in disaster eventually. I’ll wait for the headlines out of the Bakken “biggest production of all time” in ND or something like that. Think it was 100mb/d or something can’t recall. But OAS went bust not long after. Does lightning strike twice? Why yes, I believe it does. But this time it will be double lightning ⚡️
@Trader611 If they went out on a shopping spree and bought XOM's? Bakken acreage with debt, then maybe. They essentially have zero debt by the time they merge.
The tax issues may be significant for share owners. Lots of cash changing hands.
This will just mean massive bonuses to management. Same old same old.
What happens to the OAS stake in CEQP?

Will the merged company keep that stake, or sell it?

Looks like selling it, to support all the payouts proposed by the merged entity.
@Unexceptional I missed the call. Did they say that they were selling CEQP on the call? On open market or negotiated sales back to CEQP?
Pentacoff Investments profile picture
@parity If you look at the last slide in their merger presentation, the implication is that they are retaining their interest in CEQP - which is the desirable outcome. It is a good investment.
@Pentacoff Investments . would make sense since the distribution yield to OAM is around 9% and the combined new company should be using CEQP pipes and services which benefits both
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