Whiting Said to Draw Interest From Exxon as It Explores Sale
2015-03-13 19:51:23.423 GMT
By Matthew Monks and Bradley Olson
(Bloomberg) -- Whiting Petroleum Corp., the North Dakota
oil explorer, has attracted interest from Exxon Mobil Corp. and
Continental Resources Inc. as it explores a sale of the entire
company, people with knowledge of the situation said.
Hess Corp. and Statoil ASA are also looking at Denver-based
Whiting, said the people, who asked not to be identified
discussing private information. Whiting has set up a data room
for potential buyers to evaluate the company’s financial
information and asked them to submit bids next week, the people
said. The discussions are ongoing and there’s no guarantee a
deal will be reached.
A potential deal for Whiting, the largest producer in North
Dakota’s Bakken shale formation, may be the first in an
anticipated pickup of merger activity for U.S. energy producers
as they grapple with heavy debt and an oil selloff.
Continental, Exxon, Hess and Statoil are already among the
10 largest holders of acreage in the Bakken, a giant slab of
oil-soaked rock that lies beneath Montana, North Dakota and
parts of Canada, according to data compiled by Bloomberg.
Consolidation is likely to pick up in the oil patch this
year as larger U.S. and international buyers seek to “snatch
up” valuable shale producers, according to a statement from
Paulson & Co., which owns 8.1 percent of Whiting.
Spokesmen for Whiting, Exxon, Continental, Hess and Statoil
declined to comment. The Wall Street Journal previously reported
that Whiting is seeking a buyer.
Bigger Footprint
Whiting is probably exploring a sale along with other
strategic alternatives, including selling assets, raising debt
and selling shares in order to address “investor liquidity
concerns,” Phillip Jungwirth, an analyst with Bank of Montreal,
wrote in a research note last week.
Bloomberg News reported in February that Whiting was
exploring selling up to $700 million of oil and natural gas
processing assets.
“While some reports implied Whiting was a distressed
seller, we don’t view this as the case,” Jungwirth wrote.
“We’d expect interest in Whiting to come from larger Bakken
peers that are looking to expand their footprint.”
Buying a shale producer such as Whiting is cheaper than it
has been at any time in recent years as companies used new
technology to unlock a boom in North American supplies, flooding
world markets and depressing prices. The value of reserves held
by about 75 drillers based on their reserves fell by a median of
25 percent by the end of 2014 compared to the previous year,
according to data compiled by Bloomberg.
U.S. crude prices fell 3.4 percent to $45.44 at 12:05 p.m.
in New York, the lowest level in almost six weeks, as the
International Energy Agency said a record surplus of oil put in
storage may soon renew a price slump.
Shale on Sale as Oil Crash Tilting Seller Markets to Buyers
Whiting Petroleum Said to Hire Bank to Pursue Potential Sale
L-Shaped Oil Recovery Flattens V-Shaped Market Optimists:Energy
Whiting news: WLL US <Equity> CN BN <GO>
Bloomberg Intelligence Oil Analysis: BI OILS <GO>
Top stories: OTOP <GO>
--With assistance from Kelly Bit in New York.
To contact the reporters on this story:
Matthew Monks in New York at +1-212-617-8111 or
mmonks1@bloomberg.net;
Bradley Olson in Houston at +1-713-547-8408 or
bradleyolson@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net;
Susan Warren at +1-214-954-9455 or
susanwarren@bloomberg.net
Elizabeth Wollman
2015-03-13 19:51:23.423 GMT
By Matthew Monks and Bradley Olson
(Bloomberg) -- Whiting Petroleum Corp., the North Dakota
oil explorer, has attracted interest from Exxon Mobil Corp. and
Continental Resources Inc. as it explores a sale of the entire
company, people with knowledge of the situation said.
Hess Corp. and Statoil ASA are also looking at Denver-based
Whiting, said the people, who asked not to be identified
discussing private information. Whiting has set up a data room
for potential buyers to evaluate the company’s financial
information and asked them to submit bids next week, the people
said. The discussions are ongoing and there’s no guarantee a
deal will be reached.
A potential deal for Whiting, the largest producer in North
Dakota’s Bakken shale formation, may be the first in an
anticipated pickup of merger activity for U.S. energy producers
as they grapple with heavy debt and an oil selloff.
Continental, Exxon, Hess and Statoil are already among the
10 largest holders of acreage in the Bakken, a giant slab of
oil-soaked rock that lies beneath Montana, North Dakota and
parts of Canada, according to data compiled by Bloomberg.
Consolidation is likely to pick up in the oil patch this
year as larger U.S. and international buyers seek to “snatch
up” valuable shale producers, according to a statement from
Paulson & Co., which owns 8.1 percent of Whiting.
Spokesmen for Whiting, Exxon, Continental, Hess and Statoil
declined to comment. The Wall Street Journal previously reported
that Whiting is seeking a buyer.
Bigger Footprint
Whiting is probably exploring a sale along with other
strategic alternatives, including selling assets, raising debt
and selling shares in order to address “investor liquidity
concerns,” Phillip Jungwirth, an analyst with Bank of Montreal,
wrote in a research note last week.
Bloomberg News reported in February that Whiting was
exploring selling up to $700 million of oil and natural gas
processing assets.
“While some reports implied Whiting was a distressed
seller, we don’t view this as the case,” Jungwirth wrote.
“We’d expect interest in Whiting to come from larger Bakken
peers that are looking to expand their footprint.”
Buying a shale producer such as Whiting is cheaper than it
has been at any time in recent years as companies used new
technology to unlock a boom in North American supplies, flooding
world markets and depressing prices. The value of reserves held
by about 75 drillers based on their reserves fell by a median of
25 percent by the end of 2014 compared to the previous year,
according to data compiled by Bloomberg.
U.S. crude prices fell 3.4 percent to $45.44 at 12:05 p.m.
in New York, the lowest level in almost six weeks, as the
International Energy Agency said a record surplus of oil put in
storage may soon renew a price slump.
Shale on Sale as Oil Crash Tilting Seller Markets to Buyers
Whiting Petroleum Said to Hire Bank to Pursue Potential Sale
L-Shaped Oil Recovery Flattens V-Shaped Market Optimists:Energy
Whiting news: WLL US <Equity> CN BN <GO>
Bloomberg Intelligence Oil Analysis: BI OILS <GO>
Top stories: OTOP <GO>
--With assistance from Kelly Bit in New York.
To contact the reporters on this story:
Matthew Monks in New York at +1-212-617-8111 or
mmonks1@bloomberg.net;
Bradley Olson in Houston at +1-713-547-8408 or
bradleyolson@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net;
Susan Warren at +1-214-954-9455 or
susanwarren@bloomberg.net
Elizabeth Wollman