Oasis Petroleum Inc. Announces Strategic Acquisition of Williston Basin Assets, Reports First Quarter 2021 Results, Declares Dividend and Updates 2021 Outlook

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[{"type":"text","content":"HOUSTON, May 3, 2021 /PRNewswire/ -- Oasis Petroleum Inc. (NASDAQ: OAS) (\"Oasis\" or the \"Company\") today announced a strategic acquisition of Williston Basin assets, reported financial and operating results for the first quarter of 2021, declared its first quarter 2021 dividend, and updated its 2021 outlook to incorporate the acquisition, including an expected 33% increase to its future quarterly fixed dividend after the acquisition closes. \nWilliston Basin Acquisition\nOasis announced it has entered into a definitive agreement under which Oasis will acquire select Williston Basin assets from Diamondback Energy in a cash transaction valued at approximately $745MM, subject to customary purchase price adjustments. The consideration is expected to be financed through cash on hand (approximately $106MM as of March 31, 2021), revolver borrowings ($450MM elected commitment on $500MM borrowing base, none drawn as of March 31, 2021), and a $500MM fully committed underwritten bridge loan (expecting high yield financing to replace the bridge loan). The transaction was approved unanimously by the Board of the Directors of each company. The effective date of the acquisition will be April 1, 2021 and the closing is expected to occur in July 2021, subject to customary closing conditions.\nTransaction Highlights:\nAssets purchased include approximately 27 MBoe/d of production in 1Q21 on a two-stream basis and 95,000 net acres; Accretive to cash flow per share and free cash flow per share in both the near and long-term before accounting for synergies. Oasis expects over $100MM of incremental field level cash flow (EBITDA less CapEx) at strip prices in 2H21; Allows for the return of more cash flow to shareholders, with an expected 33% increase to the quarterly fixed dividend per share post closing; Purchase price represents approximately $28,000 per Boe/d on 1Q21 two-stream volumes; Pro forma leverage of approximately 0.8x at March 31, 2021, based on 1Q21 annualized Adjusted EBITDA to Oasis, remains below Oasis's 1.0x target and well below peers; Lowers 2021 reinvestment ratio to less than 55% using $55 per barrel WTI and $2.50 per mmBtu NYMEX gas for the remainder of 2021; Adds two to three years of top-tier locations competitive with Oasis's existing top-tier assets; Lowers exploration and production (\"E&P\") cash G&A exit rate guidance ...

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