Whiting Petroleum Corp. and Oasis Petroleum Inc are set to merge in a $6 billion deal including debt, according to a news release by Whiting on Monday.

  • The merger arrangement between the companies, which had filed for bankruptcy in 2020 after the crash in energy prices due to the Covid-19 pandemic, comes after record-high crude prices.
  • Shares of Oasis Jumped 6.2% as Whiting Petroleum surged 6% in premarket trading.
  • The new merger will have a premier Williston Basin position in North Dakota and Montana with major assets spread across nearly 972,000 net acres and combined production of 167,800 barrels of oil equivalent per day.
  • Under the terms of the transaction, Whiting shareholders will get 0.5774 shares of Oasis common stock and $6.25 in cash for every share held, giving the combined entity an equity value of $3.52 billion.

Upon finalization of the deal, Whiting shareholders will have nearly 53%, and Oasis shareholders will have almost 47% of the combined value of the company on a fully diluted basis. WLL: NYSE is up +1.88%, pre-market trading, OAS: Nasdaq is up +1.74%, pre-market trading