U.S. shale oil and gas producers Oasis Petroleum Inc. and Whiting Petroleum Corp. are close to agreeing to an all-stock merger that could be announced as soon as this week, a source familiar with the matter said on March 6.
UPDATE:
Whiting, Oasis Petroleum to Combine in $6 Billion ‘Merger of Equals’ - updated 8:49 a.m. CST March 7
The combined value of the two companies would be around $6.07 billion, according to Reuters calculations based upon closing prices on March 4, which valued Oasis at $2.8 billion and Whiting at $3.27 billion.
The person with knowledge of the matter spoke on condition of anonymity in order to discuss private information.
The deal talks between the pair, which both operate in the Bakken shale formation of North Dakota, come amid a significant spike in crude oil prices on the back of the Russian invasion of Ukraine.
Both Brent and U.S. benchmarks temporarily hit their highest levels since 2008 as trading began the week in Asia, as the U.S. and European allies mulled a Russian oil import ban in response to the conflict, which Russia calls a “special operation.”
The Wall Street Journal had earlier reported the talks between Oasis and Whiting.
Oasis Petroleum and Whiting Petroleum did not immediately respond to a request for comment.
Both companies filed for Chapter 11 bankruptcy in 2020 after the energy industry reeled under an unprecedented crash in oil prices due to the COVID-19 pandemic, with Whiting the first publicly traded shale producer to file for bankruptcy when it did so in April of that year.
Last year, oil and gas pipeline operator Crestwood Equity Partners LP said it would buy Oasis Petroleum’s midstream unit in a $1.8 billion deal.
Recommended Reading
Exxon Mobil Green-lights $12.7B Whiptail Project Offshore Guyana
2024-04-12 - Exxon Mobil’s sixth development in the Stabroek Block will add 250,000 bbl/d capacity when it starts production in 2027.
Exxon Ups Mammoth Offshore Guyana Production by Another 100,000 bbl/d
2024-04-15 - Exxon Mobil, which took a final investment decision on its Whiptail development on April 12, now estimates its six offshore Guyana projects will average gross production of 1.3 MMbbl/d by 2027.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.
Petrobras Not in a Race with Guyana to Boost Production, CEO Says
2024-05-14 - While Brazil and Guyana aren’t necessarily competing to see which country can produce more oil, Petrobras’ CEO Jean Paul Prates jokingly said Brazil was winning, while adding that Bolivia’s falling production was an opportunity for Argentina.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.