Business
Oasis Petroleum Inc. Completes Strategic Acquisition of Williston Basin Assets, Announces Redetermination of Its Borrowing Base, and Schedules Third Quarter 2021 Conference Call
HOUSTON, Oct. 21, 2021 /PRNewswire/ -- Oasis Petroleum Inc. (NASDAQ: OAS) ("Oasis" or the "Company") announced today it has completed the previously announced
About this update from Chord Energy Corporation
[{"type":"text","content":"HOUSTON, Oct. 21, 2021 /PRNewswire/ -- Oasis Petroleum Inc. (NASDAQ: OAS) (\"Oasis\" or the \"Company\") announced today it has completed the previously announced strategic acquisition of Williston Basin assets from Diamondback Energy (\"Seller\"). The cash payment made at closing to the Seller of $511.3MM is net of the $75MM deposit paid in 2Q21 and reflects customary purchase price adjustments to the transaction, which was valued at approximately $745MM with an effective date of April 1, 2021.\nOasis also announced the lenders under its senior secured revolving credit facility completed their regular semi-annual redetermination of the borrowing base, resulting in the borrowing base increasing from $400MM to $900MM. The elected commitment amount will remain at $450MM. The next redetermination of the borrowing base is scheduled for April 1, 2022. On September 30, 2021, Oasis had a cash balance of approximately $818.9MM, $0 drawn on its credit facility, and $400MM of unsecured notes. Pro forma cash adjusting for the acquisition would have been $307.6MM. \n\"The closing of this asset acquisition allows us to integrate and drive significant value from our Williston Basin position, where we see long-term running room given our pro forma inventory depth,\" said Danny Brown, Oasis' Chief Executive Officer. \"The closing follows Oasis' Permian Basin exit in June and represents a strategic portfolio repositioning, where we were able to buy assets for PDP value and sell assets for a significant premium to PDP value. With the closing, Oasis' pro forma volumes increase by approximately 50%.\"\n\"Oasis has fundamentally aligned resources with our core competitive strengths and strategic focus of building a sustainable enterprise that generates attractive returns and significant free cash flow for the benefit of the Company and shareholders. Oasis remains committed to increasing its fixed dividend by over 33% to $0.50/share, or $2.00/share annualized, in November 2021.\" \n\"I'm thankful for the hard work of all those involved in this transaction, with special thanks to the field employees who have been running the asset since we announced the transaction,\" added Mr. Brown. \"We look forward to Oasis operating this asset in a manner consistent with our values: being respectful of, and engaging with, all of our stakeholders, including the Th...