The Rising Influence of Rising Affluence

[DewDiligence]

Bakken consolidation—WLL acquires KOG for $6.0B:

http://online.wsj.com/articles/whiting-petroleum-to-buy-kodiak-oil-gas-1405289649

The deal calls for Kodiak shareholders to receive 0.177 share in Whiting for each Kodiak share owned. That translates into the equivalent of $13.90 a share based on Whiting's closing price on Friday—a 5.1% premium over Kodiak's average stock price for the past two months. [However, the $13.90 nominal price is a 2% discount to KOG’s closing price on 7/11/14.]

…The two companies together produced 107,000 barrels a day of oil equivalent in North Dakota and Montana in the first quarter. That compares with Continental Resources’ (CLR) output of around 97,500 barrels of oil equivalent a day in the region. [By comparison, HES is currently producing 80-90K bbl/day from the Bakken (#msg-101803563) and expects to eventually reach 120K bbl/day; thus, in the short run, HES will fall to third place in Bakken production when the WLL-KOG deal closes.]

The $6.0B nominal deal value consists of $3.8B of WLL stock and $2.2B assumption of KOG debt.