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U.S. shale oil and gas producers Oasis and Whiting in talks to merge

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© Reuters. Drill pipe is seen under a drilling rig on a lease owned by Oasis Petroleum within the Permian Basin close to Wink, Texas U.S. August 22, 2018. REUTERS/Nick Oxford/Recordsdata

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By David French

(Reuters) – U.S. shale oil and fuel producers Oasis Petroleum (NASDAQ:) Inc and Whiting Petroleum (NYSE:) Corp are near agreeing an all-stock merger that may very well be introduced as quickly as this week, a supply conversant in the matter mentioned on Sunday.

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

The particular person with information of the matter spoke on situation of anonymity in an effort to focus on personal data.

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

Each 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”. [O/R]

The Wall Avenue 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 vitality trade reeled underneath an unprecedented crash in oil costs because of the COVID-19 pandemic, with Whiting the primary publicly traded shale producer to file for chapter when it did so in April of that yr.

Final yr, oil and fuel pipeline operator Crestwood Fairness (NYSE:) Companions LP mentioned it could purchase Oasis Petroleum’s midstream unit in a $1.8 billion deal.

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