History
Oasis Petroleum grew through Williston Basin acquisitions, went through Chapter 11 in 2020, then merged with Whiting to become Chord Energy and bought Enerplus in 2024.
2013-2018: Buying acreage in the Williston Basin
The record begins in 2013, when Oasis Petroleum, which went public in 2010, set out to expand in the Williston Basin. In September it agreed to buy 136,000 net acres for about $1.45 billion, part of four deals totalling 161,000 net acres and $1.515 billion, roughly a 50% expansion of its acreage. The main purchase closed in October for about $1.48 billion, with three smaller deals adding $63 million. It was funded by bonds and a credit line arranged just before. Shares on issue stayed near 93 to 94 million through 2013.
A second large purchase followed in 2016. Oasis agreed to buy about 55,000 net acres from SM Energy Company for roughly $785 million cash, and completed it on December 1 for $765.8 million. Share counts rose sharply over these years, from about 101 million at the end of 2014 to 236 million at the end of 2016, though the beats do not itemise the raisings behind this.
In September 2017 Oasis took its midstream business (the pipelines and processing plants that move oil and gas) public as Oasis Midstream Partners LP, selling units at $17 each. In February 2018 it made its first move into the Permian Basin, buying about 22,000 net Delaware Basin acres from Forge Energy, LLC and paying partly in Oasis stock.
2019-2020: Distress and Chapter 11
The record is quiet for 2019 apart from routine exchange listing notices. In 2020 the pressure showed. In April, as oil prices collapsed, lenders granted a waiver and amended the credit agreement. In August Nasdaq told Oasis its stock no longer met listing requirements. In September the company and its lenders agreed to unwind its hedges (contracts that lock in future prices).
On September 29 Oasis signed a restructuring support agreement with its bank lenders and some noteholders, and on September 30 it filed a prepackaged Chapter 11. Noteholders were to receive 100% of the new common stock, while existing shareholders would get only a share of new warrants. A $450 million debtor-in-possession loan (financing to keep operating during bankruptcy) was committed, and Wells Fargo arranged it in October. The stock was delisted. The court confirmed the plan on November 10. All funded debt was discharged and the existing 320,920,039 shares were cancelled, which explains the fall in share count to about 20 million by year end. Exit financing was a revolving credit facility of up to $1.5 billion, with an initial borrowing base of $575 million.
2021-2022: Simplifying and merging
Oasis emerged from bankruptcy and, in February 2021, declared its first dividend, $1.50 per share annualised. In March it agreed to sell its remaining Bobcat and Beartooth midstream interests to Oasis Midstream Partners for $229.0 million in cash plus units, completed in April, and authorised a $100 million share buyback. In May it agreed to sell its entire Permian position for up to $481 million, refocusing on the Williston Basin. A $4.00 special dividend was paid in July.
In October 2021 Oasis completed a roughly $745 million purchase of Williston Basin assets from Diamondback Energy's QEP Energy subsidiary, paying $511.3 million net at closing, and its borrowing base rose to $900 million. It also agreed to merge Oasis Midstream Partners into Crestwood Equity Partners LP. That closed in February 2022, with Oasis receiving $150 million cash plus Crestwood units and owning about 21.7% of Crestwood.
In March 2022 Oasis announced a merger of equals with Whiting Petroleum, creating an operator with about 970,000 net acres and 170,000 barrels of oil equivalent per day. Each Whiting share became $6.25 in cash plus 0.5774 new shares, and Oasis holders were to get a $15.00 per share special dividend. Both sets of shareholders approved on June 28. The merger completed on July 1, 2022, and the company became Chord Energy, trading as CHRD from July 5. Former Whiting holders owned about 53% and Oasis holders about 47%. The share count roughly doubled in 2022 to about 41 million. The credit agreement was restated with commitments of $800 million and a borrowing base of $2 billion, and the dividend was paid on July 8.
2024: Buying Enerplus
The record is quiet for 2023. In February 2024 Chord agreed to buy Canadian producer Enerplus Corporation for 0.10125 of a Chord share plus $1.84 in cash per Enerplus share, which would leave Chord holders with about 67% and Enerplus holders about 33%. Shareholders were asked to approve the share issuance and to raise authorised shares from 120 million to 240 million; a special meeting was set for May 14.
The acquisition closed on May 31, 2024, and Enerplus became a wholly owned subsidiary, with 20,680,097 Chord shares authorised for distribution. The share count rose to about 60 million by year end. Chord signed a fifth credit agreement amendment raising the borrowing base to $3.0 billion, with elected commitments of $1.5 billion, and adding a provision that can release collateral if investment grade ratings are assigned. Enerplus chief executive Ian Dundas and three other Enerplus-linked directors joined the board, which grew from nine to eleven. As of June 6, 2024, Chord was a Williston Basin producer that had just absorbed Enerplus.
Written from the 38 story beats below (2013 to 6 June 2024), which come from the company's own announcements and filings.