Whiting Petroleum buys Kodiak Oil & Gas Corp

Whiting Petroleum buys Kodiak Oil & Gas Corp

Whiting Petroleum buys Kodiak Oil & Gas Corp

Whiting Petroleum made an all-stock deal about acquiring Kodiak Oil& Gas Corp. for $6 billion.

Whiting and Kodiak will be the biggest producer in the region producing more than 107 000 barrels of oil equivalent per day. The deal includes assumption of Kodiak’s net debt of $2.2 billion is expected to close in the fourth quarter. The combined companies’ output from the Bakken/Three Forks formations in the first quarter of 2014 was over 107,000 barrels of oil equivalent per day, with 855,000 combined net acres and almost 3,500 net future drilling locations. The formations are among the largest oil plays in the United States located within the Williston Basin in North Dakota and Montana.

 “We believe this transaction represents a significant opportunity for both Whiting and Kodiak shareholders to benefit from the strength of our combined company. The combined company’s shareholders will also participate in Whiting’s 175,000 gross (123,000 net) acre, oil-rich Redtail-Niobrara prospect in the NE DJ Basin, where production is rapidly growing.”  said Chairman, CEO and President of Whiting Petroleum James J. Volker

Whiting’s financial advisor is J.P. Morgan Securities LLC and Legal counsels are Foley & Lardner LLP and Stikeman Elliot LLP.

Mr. Stakebay says:

Next, in the words of James J. Vokler they expect the combined entinty to have an initial enterprise value of $17.8 billion, total 2014 production of 152 thousand barrels of oil equivalent per day, and proved reserves of 606 million barrels of oil equivalent (80% oil), providing a leading platform for future oil-driven growth.

Chairman, CEO and President of Whiting Petroleum……… James J. Volker…………(2002-present)…………………$7 290 000 (2013)

Chairman, CEO and President of Kodiak Oil & Gas Corp…. Lynn Alan Peterson…….(2002-present)………………..$6 145 906 (2013)

WHITING PETROLEUM

KODIAK OIL & GAS

Revenue

$2.666 billion

$904.612 million

Operating income

$1.744 billion

$349.754 million

Profit

$366 million

$141.416 million

Total assets

$8.833 billion

$3.923 billion

Total Equity

$3.836 billion

$1.193 billion

Employees

958(2013)

202(2013)

 

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