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Shareholders approve acquisition between pair of Denver-based company’s

Whiting Petroleum Corp. shareholders have approved the acquisition of Kodiak Oil & Gas Corp. in an all-stock deal, according to the Denver Business Journal. The deal is valued at $6 billion.

A merger between the two companies was announced back on July 13 of this year. It is expected that this merger will make Whiting Petroleum the largest crude-oil producer in the Bakken shale region of the northern Great Plains.

According to Whiting, 78.5 percent of the company’s shares voted in the special stockholder meeting, with 99.8 percent in favor of issuing the stock needed to purchase Kodiak. The $6 billion deal–expected to close next week–included $3.8 billion in stock and $2.2 billion in debt

Whiting Petroleum CEO James Volker:

“The addition of Kodiak’s complementary acreage position and substantial inventory of high return drilling locations will provide the opportunity to drive significant value growth for both Whiting and Kodiak shareholders through and acceleration in drilling and increase in operational efficiencies.”

As part of the merger announced back in July, Kodiak stockholders received a 0.177 percent of a Whiting share for each Kodiak share they owned, valuing those shares at $13.90 each based on the closing price of Whiting stock on July 11. The closing price per share on July 11 was $78.54 per share. Today, the stock has fallen off dramatically and sits at $39.62 per share.

Related: Whiting’s tab for Kodiak dips with oil prices, but risks remain


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