Oasis Acquires Select QEP Resources In The Bakken -- August 27, 2022

I'm sure I posted this but I've long forgotten and I'm not in the mood to look for it, at least not now. [Later: see this post.]

But back on October 21, 2021 -- about a year ago -- Oasis Petroleum -- now Chord Energy -- completed the acquisition of select Williston Basin assets of QEP Resources. Link here.

Oasis Petroleum Inc. entered into a definitive agreement to acquire select Williston Basin Assets of QEP Resources, Inc. for approximately $750 million on May 3, 2021. 

The consideration is expected to be financed through cash on hand (approximately $106 million as of March 31, 2021), revolver borrowings ($450 million elected commitment on $500 million borrowing base, none drawn as of March 31, 2021), and a $500 million fully committed underwritten bridge loan committed by  J.P. Morgan and Wells Fargo (expecting high yield financing to replace the bridge loan), net proceed from the Permian Basin Sale and the net proceeds from the offering of $400 million in aggregate principal amount of senior unsecured notes due 2026 completed on June 9, 2021. 

The transaction is expected to close in the third quarter of 2021. As of May 24, 2021, the transaction is expected to close in July 2021. As of June 28, 2021, completion is expected to occur by the end of July 2021. As of August 2, 2021, the transaction is expected to close in late third quarter of 2021. As of September 30, 2021, the parties extended the outside date for the consummation of the acquisition to October 27, 2021. Net proceeds from the transaction are expected to be applied towards debt reduction. The transaction is accretive to cash flow per share and free cash flow per share in both the near and long-term before accounting for synergies.

Is this:

• $106 million cash-on-hand,
• $450 million, revolver borrowings,
• and a $500 million bridge loan
• net proceeds from $400 million from Permian sale?

The deal:

• 95,000 net acres.
• $745 million.
• $745 million / 95,000 net acres = $8,000 / acre. 

Much to say to the nay-sayers, but I don't have time for that now. Maybe later.