Asset A&D

Oasis Petroleum Acquires Diamondback Energy's Williston Basin Assets

By Sakshi Jain
May 03, 2021
2 minutes read
Onshore Oil Rig

NYSE-listed Oasis Petroleum Inc. has entered into a definitive agreement with NASDAQ-listed Diamondback Energy Inc. to acquire its non-core Williston basin assets located in North Dakota for a total consideration of approximately US$745 million, subject to customary purchase price adjustments. The transaction marks Diamondback Energy’s exit from operations in the Williston basin.

In December 2020, Diamondback Energy had entered into a definitive merger agreement to acquire 100% of the issued and outstanding share capital of QEP Resources Inc. in an all-stock corporate transaction valued at approximately US$2.15 billion, including the assumption of approximately US$1.59 billion of net debt. The Williston basin acreage divested in the transaction was acquired from QEP Resources pursuant to the merger.
Under the terms of the deal, the total consideration of US$745 million has been funded through US$106 million of cash in hand, approximately US$450 million from revolver borrowings, and a US$500 million committed underwritten bridge loan.

The assets acquired include approximately 94,610 net acres located in McKenzie, Dunn, Mountrail, McLean, and Mercer counties in North Dakota. The assets include 20 gross (5.3 net) operated and non-operated wells, with 12 gross (2.5 net) operated and non-operated wells completed and producing. The acreage has total proved (1P) reserves of approximately 116 million barrels of oil equivalent (MMboe) as of December 31st, 2019, and an average daily production of approximately 27 thousand barrels of oil equivalent (Mboe) during Q1-2021.

Based in Houston, Oasis Petroleum is focused on the acquisition and development of unconventional oil & gas resources in the Williston basin in North Dakota and Montana, and the Delaware basin in West Texas.

Texas-based Diamondback Energy is focused on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas, with a primary focus on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork, Bone Spring, and Cline formations.

JP Morgan Securities is acting financial advisor to Oasis Petroleum, while Goldman Sachs & Co is acting as financial advisor to Diamondback Energy.

The transaction is subject to customary closing conditions, including due diligence, and is expected to close in July 2021 with an effective date of April 1, 2021.

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