Oasis Petroleum Inc. and Whiting Petroleum Corp. have merged, forming a $6 billion oil and gas company, Chord Energy.
The new entity has a prime Williston Basin position with assets across about 972,000 net acres, combined first-quarter production of 171.1 thousand barrels of oil equivalent per day (BOEPD), and enhanced free cash flow generation.
For Whiting Petroleum shareholders, the transaction will convert each company stock into 0.5774 shares of Oasis Petroleum. They’ll also be paid $6.25 for each share they own, a one-time payout totaling $245.3 million. Whiting shareholders will own 53% of Chord.
Oasis shareholders will receive a special merger dividend of $15 per share, which translates into $294.4 million given back to Oasis investors as the businesses combine. Oasis shareholders will own 47% of the new entity.
“Over the last year, both companies have executed a series of deliberate strategic transactions, reducing costs and establishing a leading framework for ESG and return of capital,” Oasis Chief Executive Officer Danny Brown said in the merger statement. “The combination of the two companies, together with the ongoing momentum from these strategic actions, will accelerate our efforts and ideally position the combined company to generate strong free cash flow, execute a focused strategy, and enhance the return of capital.”
Brown will serve as Chord’s President, Chief Executive Officer, and member of the Board. Whiting’s President and Chief Executive Officer, Lynn Peterson, will be the Executive Chair of Chord’s Board of Directors.
"This is also an exciting and very positive development for the communities in which we operate and the great states of North Dakota and Montana,” Peterson said in the statement. “We look forward to unlocking the enormous potential of our assets and organizations for the benefit of our stakeholders.”