Whiting Petroleum Corp's takeover of Kodiak Oil and Gas Inc is worth $1.55 billion based on Monday's closing stock price, about $2.25 billion less than when first announced last July. The value of the all-stock deal, which pushes Whiting past Continental Resources Inc to become the largest North Dakota oil producer, has dropped sharply as shares of both companies have plunged in tandem with oil prices.As part of the deal, Whiting acquired Kodiak's proven reserves of roughly 167 million barrels of oil equivalent for $23.77 per barrel. That is far below the current benchmark price for American crude oil, boosting the economics of the deal."We have a lot of financial flexibility to weather this" recent drop in oil prices, said Eric Hagen, Whiting's vice president of investor relations.Whiting on Monday announced the completion of the transaction and had already begun integrating the two companies, with roughly 80 percent of Kodiak's employees joining Whiting and the remainder laid off or choosing to leave, Hagen said.
Continental Resources, Inc. (Continental Resources) is an independent crude oil and natural gas exploration and production company with operations in the North, South and East regions of the United States. Shares of CLR fell by 11.74% or $-4.49/share to $33.74. In the past year, the shares have traded as low as $37.43 and as high as $80.91. On average, 3266250 shares of CLR exchange hands on a given day and today's volume is recorded at 9671586.
Whiting Petroleum Corporation (Whiting) is an independent oil and gas company engaged in acquisition, development, exploitation, production and exploration activities primarily in the Rocky Mountains, Permian Basin, Mid-Continent, Michigan and Gulf Coast regions of the United States. Shares of WLL fell by 13.37% or $-4.98/share to $32.27. In the past year, the shares have traded as low as $37.25 and as high as $92.92. On average, 3316170 shares of WLL exchange hands on a given day and today's volume is recorded at 8639697.
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