Whiting to top Bakken oil firms in $6B Kodiak buy - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

Whiting to top Bakken oil firms in $6B Kodiak buy

Posted: Updated:
  • NationalMore>>

  • Perdue defeats Kingston in Georgia Senate runoff

    Perdue defeats Kingston in Georgia Senate runoff

    Tuesday, July 22 2014 11:40 PM EDT2014-07-23 03:40:29 GMT
    After a bruising nine-week runoff campaign, Georgia Republicans will finally have their Senate nominee who will compete against Democrat Michelle Nunn for a seat the GOP can ill afford to lose as the party looks to...More >>
    Businessman David Perdue has defeated longtime Rep. Jack Kingston in the Republican runoff for Georgia's U.S. Senate nomination, setting up a matchup against Democratic nominee Michelle Nunn that will help determine...More >>
  • CEO: Clippers coach to quit if Sterling stays

    CEO: Clippers coach to quit if Sterling stays

    Tuesday, July 22 2014 11:24 PM EDT2014-07-23 03:24:23 GMT
    Richard Parsons, the interim CEO of the Los Angeles Clippers, is due to step into the battle of billionaires going on in probate court over the proposed sale of the Los Angeles Clippers.More >>
    The interim CEO of the Los Angeles Clippers testified Tuesday that coach Doc Rivers told him he will quit if Donald Sterling remains the owner of the team.More >>
  • Flight bans show skittishness over trouble spots

    Flight bans show skittishness over trouble spots

    Tuesday, July 22 2014 11:15 PM EDT2014-07-23 03:15:04 GMT
    By The Associated Press Delta Air Lines is canceling all flights to Israel until further notice, citing reports that a rocket landed near Tel Aviv's Ben Gurion Airport.More >>
    By The Associated Press When U.S. and European airlines quickly canceled flights to Israel Tuesday, they showed both a skittishness and a new sense of urgency in dealing with global trouble spots...More >>

DENVER (AP) - Whiting Petroleum Corp. said Sunday it is buying Kodiak Oil & Gas Corp. for $6 billion in stock, worth $13.90 per share, in a deal that will make it the largest producer in the booming Bakken region of North Dakota and Montana.

The combined company had over 107,000 barrels of oil equivalent production per day in the first quarter.

The merger is meant to take advantage of cost savings through technological expertise, complementary drilling areas and better access to capital. It also gives it a stronger credit profile.

Whiting CEO James Volker said both companies' shareholders will benefit from the combination. Next year, the company is expected to produce 152,000 barrels of oil equivalent per day, he said.

The deal will increase earnings per share starting in 2015.

Kodiak shareholders will get 0.177 shares of Whiting stock for every share they hold. The value is about 5 percent above the average price over the last 60 trading days. After the transaction, Whiting shareholders will own about 71 percent of the company, while Kodiak shareholders will own about 29 percent.

The deal is expected to close before the end of the year.

Whiting shares closed at $78.54 on Friday, down 1.8 percent from the previous close, while Kodiak shares closed down 2.3 percent at $14.23.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow