Published: May 28, 2021 |

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Oasis Petrolem has entered into a definitive agreement to acquire select Williston Basin assets from Diamondback Energy in a cash transaction valued at approximately $745 million, subject to customary purchase price adjustments.

The consideration is expected to be financed through cash on hand, revolver borrowings, and a fully committed underwritten bridge loan. The transaction was approved unanimously by the board of the directors of each company. The closing is expected to occur in July 2021, subject to customary closing conditions.

“This exciting acquisition is a great example of how Oasis is addressing the needs of tomorrow, by taking action in our new industry paradigm, today. The strategic fit of focusing capital to consolidate assets in our core area, generating significant free cash flow for the benefit of the company and its shareholders, is highlighted via this acquisition,” said Danny Brown, Oasis’ chief executive officer.

“I’m thankful for the hard work of all those involved in this transaction, and look forward to Oasis operating this asset in a manner consistent with our values and focus on ESG: being respectful of and engaging with all of our stakeholders, including the Three Affiliated Tribes on the Fort Berthold Indian Reservation; showing commitment to our communities and the environment; and operating in a safe and sustainable manner,” added Brown.

Transaction Highlights

• Assets purchased include approximately 27 MBoe/d of production in 1Q21 on a two-stream basis and 95,000
  net acres
• Accretive to cash flow per share and free cash flow per share in both the near and long-term before accounting
  for synergies. Oasis expects over $100 million of incremental field level cash flow (EBITDA less CapEx) at
  strip prices in 2H21
• Allows for the return of more cash flow to shareholders, with an expected 33 percent increase to the quarterly
  fixed dividend per share post closing
• Purchase price represents approximately $28,000 per Boe/d on 1Q21 two-stream volumes
• Pro forma leverage of approximately 0.8x at March 31, 2021, based on 1Q21 annualized Adjusted EBITDA to
  Oasis, remains below Oasis’s 1.0x target and well below peers
• Lowers 2021 reinvestment ratio to less than 55 percent using $55 per barrel WTI and $2.50 per mmBtu NYMEX
  gas for the remainder of 2021
• Adds two to three years of top-tier locations competitive with Oasis’s existing top-tier assets
• Lowers exploration and production cash G&A exit rate guidance to $1.25 – $1.35 per BOE vs. $1.60 per BOE
  prior to the transaction. Provides opportunities for additional capital and operating cost savings
• 2021 non-D&C CapEx expected to increase approximately $5 million – $10 million, reflecting additional
  workover costs on acquired assets. D&C capital is expected on the acquired assets in 2022
• Committed to integrating and operating the acquired assets in an environmentally conscious, sustainable
  manner, consistent with Oasis’s values
• Acquisition provides additional optionality for Oasis Midstream Partners and Oasis does not intend to slow
  development in OMP dedicated areas

About Oasis Petroleum Inc.
Oasis Petroleum Inc. is an independent exploration and production company with quality and sustainable long-lived assets in the Williston and Permian Basins. The Company is uniquely positioned with a best-in-class balance sheet and is focused on rigorous capital discipline and generating free cash flow by operating efficiently, safely and responsibly to develop its unconventional onshore oil-rich resources in the continental United States.

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