Oil Company Leaves Texas Brings $745 MILLION To NoDak!
Oh, it's just Oasis again everybody!
Oasis is coming to the Bakken, and they bought Diamondback Energy assets to the tune of about $745 million to do it! That a lot of oil production power and about 95,000 acres of the Bakken to drill, baby drill!
Which Oasis will. But one thing does have Texas looking back in anger*, Nobody Breaks Up With Texas!
Andrew Dittmar, merger and acquisitions analyst with energy research firm Enverus said Oasis’ exit from the region marked one of the first times an operator sought to increase profits by leaving the Permian – the U.S’ most productive oilfield.
What Oasis did was ditch their operation in the West Texas/New Mexico Permian Basin, which NASDAQ is reporting as the primary driver of crude oil production in the United States. But Oasis is a mid-size competitor that was fighting with four very big dogs in the Permian Basin including Diamondback Energy, from whom Oasis just acquired all that massive acreage right here in North Dakota. Maybe they just felt they were moving from the kids table up to the adult table with a big land grab in North Dakota. Or in big shot talk...Let's here from Oasis Chief Executive Officer Danny Brown
“The decision to exit the Permian Basin while building scale in the Williston Basin is fundamentally based on aligning company resources with our core competitive strengths and strategic focus of building a sustainable enterprise which generates significant free cash flow for the benefit of the Company and shareholders,
Just looking around, it seems that Oasis is making a clever ploy moving into North Dakota...until I looked in the past and maybe if I was the Bakken, I might think that Oasis might not be the one who's gonna save me.**
Oasis has already been in the Bakken and failed. Here's them failing more recently. Earlier today Yahoo Finance seemed to be a big supporter (for now). Many a great company has ridden the oil roller coaster, I wish Oasis has a good run this time around.