The deal gives the company around 95,000 net acres with an estimated net production of around 25mboe/d in 2021

Oil Pumps

Oasis Petroleum will add nearly 95,000 net acres in the Williston Basin through the deal. (Credit: Dani Simmonds from Freeimages)

Oasis Petroleum has agreed to acquire certain assets in the Williston Basin, US from Diamondback Energy for about $745m in an all-cash deal.

The assets included in the deal had produced nearly 27,000 barrels of oil equivalent per day (27mboe/d) in the first quarter of this year. Spread over nearly 95,000 net acres, the assets will increase Oasis Petroleum’s acreage in the basin to 497,000 net acres.

Oasis Petroleum CEO Danny Brown said: “This acquisition materially enhances scale in our core Bakken asset at an attractive valuation, with the purchase price almost entirely based on PDP and very little value attributed to the development of the top-tier inventory or potential synergies.

“When combining the inherently attractive acquisition price with the prudent use of our best-in-class balance sheet this acquisition creates significant accretion for shareholders across all metrics, while maintaining pro forma leverage below target, and well below that of our peers.”

For the full year 2021, the assets involved in the deal will have an estimated net production of around 25mboe/d. This includes nearly 19mboe/d of estimated net production associated with the Williston Basin assets acquired by Diamondback Energy through its merger with QEP Resources in March 2021.

The deal with Oasis Petroleum marks the exit of Diamondback Energy from Williston Basin.

Subject to customary closing conditions, the deal is anticipated to close in July 2021.

Diamondback Energy announced another two deals with a combined worth of $87m deal to sell certain non-core assets to undisclosed buyers.

The deals include nearly 7,000 net acres of Southern Midland Basin acreage in Upton county and around 1,300 net acres of non-operated Delaware Basin assets in Lea county, New Mexico.

The assets being sold under this deal have estimated net production of about 2,650boe/d for the full year 2021 from a total of 140 producing wells. The transactions are expected to close in Q2 2021, based on continued diligence and meeting of closing conditions.

Diamondback Energy CEO Travis Stice said that the three deals will enable the company to expedite its debt reduction programme, while further strengthening the balance sheet.