Two Texas energy companies swapped holdings of assets in the Bakken in a nearly $745 million deal.
Diamondback Energy Corp. agreed Monday to sell some of the Bakken assets it acquired earlier in the year through a nearly $2.2 billion all-stock acquisition of QEP Resources.
The buyer is Oasis Petroleum, a Houston-based firm that will finance the purchase through cash on hand and revolver borrowings.
The transaction was approved unanimously by the Board of the Directors of each company. The effective date of the acquisition will be April 1, 2021 and the closing is expected to occur in July 2021, subject to customary closing conditions.
For Oasis, the acquisition includes assets with 27 MBoe/d of production in the first quarter of 2021 and 95,000 net acres.
Oasis explained the acquisition should allow for the return of more cash flow to shareholders with an expected 33% increase to the quarterly fixed dividend per share post closing.
It should also add two to three years of top-tier locations competitive with Oasis’s existing top-tier assets.