US shale producers Whiting and Oasis Petroleum announced a $6bn merger on Monday.
Under the terms of the agreement, Whiting shareholders will receive 0.5774 Oasis common stock shares and $6.25 in cash for each share of their shares. Oasis shareholders will receive a special dividend of $15.00 per share.
Upon completion, which is expected in the second half of the year, Whiting shareholders will own about 53% of the combined entity and Oasis shareholders will own the rest.
Oasis chief executive Danny Brown said: “The combination will bring together two excellent operators with complementary and high-quality assets to create a leader in the Williston Basin, poised for significant and resilient cash flow generation.
“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. 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.”
