Oasis Petroleum (OAS) is quickly becoming a Bakken pure-play.
The company has been on an acreage-buying binge, and earlier this month Oasis spent about $1.5 billion on four separate acquisitions of assets in the Williston formation — which includes the Bakken and neighboring Three Forks. Those acquisitions boosted its total acreage in the region by more than 49% to sit at a whopping 492,000 acres. The deals will now make Oasis the seventh-largest land holder in the Bakken.
I know what you’re thinking — seventh isn’t a prime position. But given how small OAS is, that’s actually pretty impressive.
According to Bloomberg, Oasis owns about 94 acres for each $1 million in enterprise value. Given how eager larger integrated oil firms are to boost their own production via M&A, that puts OAS in a great place and offers potential buyers some of the greatest value per acre among Bakken shale producers. Even more so than buyout rumor staples like Whiting Petroleum (WLL).
Meanwhile, oil production at Oasis continues to rise, making it even more lucrative. OAS shares currently trade with a forward P/E of just 12.83.