Oasis Petroleum Inc. announced today that it has completed the previously announced strategic acquisition of Diamondback Energy’s Wouldiston Basin assets (“Seller”). The $511.3MM cash payment made to the Seller at closure is net of the $75MM deposit received in 2Q21 and represents typical purchase price modifications to the transaction, which was valued at roughly $745MM and had an effective date of April 1, 2021.
The committed sum would remain at $450MM. The borrowing base would be recalculated again on April 1, 2022. On September 30, 2021, Oasis had an estimated cash balance of $818.9MM; $0 drew on its credit facility and $400MM in unsecured notes. The purchase would have resulted in a pro forma cash adjustment of $307.6MM.
“With the completion of this asset purchase, we would be able to integrate and create considerable value from our Wouldiston Basin position, where we see long-term running space given our pro forma inventory depth,” said Danny Brown, Chief Executive Officer of Oasis. “Following’ withdrawal from the Permian Basin in June, the closure marks a smart portfolio repositioning in which we were able to purchase assets for PDP value and sell assets at a considerable premium to PDP value”.
“Oasis‘ resources have been fundamentally aligned with our key competitive strengths and strategic goal of developing a sustainable company that delivers attractive returns and considerable free cash flow for the benefit of the Company and shareholders. Oasis maintains a commitment to raise its fixed dividend by more than 33% in November to $0.50 per share, or $2.00 per share on an annual basis “in 2021.”