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(Adds details on deal)
(GNN) - Whiting Petroleum Corp said on Sunday it would acquire Kodiak Oil & Gas Corp for $3.8 billion in stock, to become the largest producer in the Bakken/Three Forks oil formations.
Whiting said the deal, valued at $6 billion when Kodiak's net debt of $2.2 billion is included, is expected to close in the fourth quarter.
The companies' combined output from the Bakken/Three Forks formations in the first quarter of 2014 was more than 107,000 barrels of oil equivalent per day, with 855,000 combined net acres and almost 3,500 net future drilling locations.
The formations, within the Williston Basin in North Dakota and Montana, are among the largest oil plays in the United States.
Kodiak shareholders will receive 0.177 share of Whiting stock for each share of Kodiak common stock they hold, representing a value of $13.90 per share based on the closing price of Whiting shares on July 11.
That would be a 5.1 percent premium to the volume weighted average price of Kodiak shares during the last 60 trading days, Whiting said in a release. It said shareholders of Whiting are expected to own about 71 percent of the combined company after the transaction.
(Reuters - AIP)(Reporting by Ransdell Pierson; Editing by Sandra Maler and Steve Orlofsky)
(GNN) - Whiting Petroleum Corp said on Sunday it would acquire Kodiak Oil & Gas Corp for $3.8 billion in stock, to become the largest producer in the Bakken/Three Forks oil formations.
Whiting said the deal, valued at $6 billion when Kodiak's net debt of $2.2 billion is included, is expected to close in the fourth quarter.
The companies' combined output from the Bakken/Three Forks formations in the first quarter of 2014 was more than 107,000 barrels of oil equivalent per day, with 855,000 combined net acres and almost 3,500 net future drilling locations.
The formations, within the Williston Basin in North Dakota and Montana, are among the largest oil plays in the United States.
Kodiak shareholders will receive 0.177 share of Whiting stock for each share of Kodiak common stock they hold, representing a value of $13.90 per share based on the closing price of Whiting shares on July 11.
That would be a 5.1 percent premium to the volume weighted average price of Kodiak shares during the last 60 trading days, Whiting said in a release. It said shareholders of Whiting are expected to own about 71 percent of the combined company after the transaction.
(Reuters - AIP)(Reporting by Ransdell Pierson; Editing by Sandra Maler and Steve Orlofsky)
