Oasis Petroleum’s Board of Directors made a special trip to the Bakken recently, gathering to meet with Chairman Mark Fox, Councilman Mervin Packineau and other MHA Nation officials on their home turf.
The group took a guided tour of the Interpretive Center in New Town and were treated to dinner and music from grammy-winning artist Keith Bear. They also visited the earth lodge, where they watched local dancers and viewed MHA cultural artifacts.
During the trip, Oasis donated a large bus to MHA Nation, which will be used to transport youth to sports and recreational activities. The bus was used by Oasis Well Services to transport employees to hydraulic fracturing completion jobs but is no longer needed and wasn’t being used.
Oasis Petroleum recently announced it is merging with Whiting, which will make it the largest asset holder in the Bakken with 972,000 net acres, and the No. 2 producer with 170,000 barrels of oil production per day, all while maintaining itself as an essentially leverage-free company.
A new name has not yet been announced for the company but a big reveal is being planned sometime in July. A select few employees working on projects involving the new name do know what it is.
“I’m just as curious as you are,” Oasis Petroleum Regulatory & Government Affairs Manager Michael P. Kukuk told the Williston Herald. “The people that know, I don’t want to pressure them to tell me what it is, but I’ve asked them like, oh so do you like it? And they said, ‘yeah, it’s good.’ So I’m excited about it. It’s kind of bittersweet you know, the Oasis name going away but I’m definitely excited about the new organization.”
Analysts, meanwhile, have told the Williston Herald the merger of Whiting and Oasis as two equals has put the new company in a kind of catbird seat when it comes to snapping up new properties if major producers decide to exit the Bakken at some point in the future.
That’s considered a likely scenario by many analysts given the maturity of the basin and ESG metrics, which are driving larger companies to pick and choose which assets they will keep for the long haul in a low-carbon world.
“It’s particularly key as there are large positions held by multi-basin producers that could be available as acquisition targets for Whiting and Oasis, but likely were beyond the scope of deal that either company could tackle on their own,” Enverus analyst Andrew Dittmar told the Williston Herald in an email. “Further acquisitions should be part of the combined companies’ strategy, as inventory management is keying a relatively mature play like the Bakken and further consolidation will continue to broaden the company’s relevance in equity markets.”