Whiting, Oasis Petroleum Surge on Reports of Merger

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Whiting, Oasis Petroleum Surge on Reports of Merger
Credit: © Reuters.

By Dhirendra Tripathi

Investing.com – Stocks of Whiting Petroleum Corporation (NYSE: WLL ) and Oasis Petroleum Inc. (NASDAQ: OAS ) soared in premarket trading Monday on reports of a merger between the two.

Whiting stock was up 6% and Oasis 8%. As of close Friday, Whiting had a market cap of about $3.3 billion while Oasis was valued at $2.8 billion.  

The Wall Street Journal first reported on the talks of an all-stock deal Sunday.

The possible deal comes in as crude prices surged to their highest levels since 2008 after reports said US is pushing for a ban on Russian oil. 

Record crude prices have revived the fortunes of an industry that’s been facing an existential crisis.  

The Biden administration is considering whether to prohibit Russian oil imports into the U.S. without the participation of allies in Europe, at least initially, Bloomberg reported.

Brent oil touched a high of $130.89 earlier in the day before giving up some of the gains to trade over $125, still up 6% at 06:00 ET. Crude Oil WTI Futures traded just over $122 after retreating from a high of $130.33.

Both companies filed for Chapter 11 bankruptcy in 2020, with Whiting being the first publicly traded shale producer to do so in April, as worries about the global economy sent the energy industry reeling under an unprecedented crash.

Last month, pipeline operator Crestwood Equity Partners (NYSE: CEQP ) finalized the acquisition of Oasis Midstream Partners (NASDAQ: OMP ), formed by Oasis Petroleum, in a deal valued at about $1.1 billion.

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