U.S. shale oil and fuel producers Oasis and Whiting in talks to merge – supply

March 6 (Reuters) – U.S. shale oil and fuel producers Oasis Petroleum Inc (OAS.O) and Whiting Petroleum Corp (WLL.N) are near agreeing an all-stock merger that might be introduced as quickly as this week, a supply aware of the matter stated on Sunday.

The mixed worth of the 2 firms could be round $6.07 billion, in keeping with Reuters calculations based mostly upon Friday’s closing costs, which valued Oasis at $2.80 billion and Whiting at $3.27 billion.

The individual with data of the matter spoke on situation of anonymity to be able to talk about personal info.

The deal talks between the pair, which each function within the Bakken shale formation of North Dakota, come amid a big spike in crude oil costs on the again of the Russian invasion of Ukraine.

Each Brent and U.S. benchmarks quickly hit their highest ranges since 2008 as buying and selling started the week in Asia, as the USA and European allies mulled a Russian oil import ban in response to the battle, which Russia calls a “particular operation”. learn extra

The Wall Road Journal had earlier reported the talks between Oasis and Whiting.

Oasis Petroleum and Whiting Petroleum didn’t instantly reply to a request for remark.

Each firms filed for Chapter 11 chapter in 2020 after the power trade reeled underneath an unprecedented crash in oil costs as a result of COVID-19 pandemic, with Whiting the primary publicly traded shale producer to file for chapter when it did so in April of that 12 months.

Final 12 months, oil and fuel pipeline operator Crestwood Fairness Companions LP (CEQP.N) stated it might purchase Oasis Petroleum’s midstream unit in a $1.8 billion deal. learn extra

Reporting by David French in Houston and Abinaya Vijayaraghavan in Bengaluru; Enhancing by Kenneth Maxwell

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