Whiting-KOG Merger Will Benefit Both Companies -- Seeking Alpha -- October 9, 2014

Contributor at Seeking Alpha:

• The merger will allow the new entity to have a diverse asset base, and Kodiak will not see seasonal disruption in production levels due to harsh weather.
• The scale of operations will result in bringing cost synergies to the combined entity, which should enhance its margins.
• The merger should also result in shielding the company against falling oil prices as cost savings will allow the company to maintain margins in the face of falling oil prices.

Kodiak's prospective merger with Whiting will be beneficial for both companies as the new entity will have the largest liquid acreage in Bakken - the advantage of the scale will allow both these companies to add substantial value to the shareholders through increased production and decreased cost. In our previous article, we discussed the details about the Kodiak-Whiting merger and the strong future growth prospects from the impressive asset base of the entity. However, the focus of this article is to highlight the position of the merged entity and the impact of the global oil prices on the company.

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