Deals - Acquisition, Mergers, Divestitures | Capital Markets

Oasis Wraps Up Deal for Williston Assets; Borrowing Base Jumps to $900MM

Share Print Bookmark    |    Monday,October 25,2021

Oasis Petroleum Inc. has completed the previously announced strategic acquisition of Williston Basin assets from Diamondback Energy.

Borrowing Base Increased Over 100%

Oasis 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.

Danny Brown, Oasis' Chief Executive Officer, said: "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. 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%.

"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. 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 Three Affiliated Tribes on the Fort Berthold Indian Reservation; showing commitment to our communities and the environment; and operating in a safe and sustainable manner."