Why Whiting Petroleum Stock Is Sinking Today
Shares of Whiting Petroleum (NYSE: WLL) tumbled nearly 10% by 10:30 a.m. EDT on Tuesday. Driving down the stock was news that the energy company is pursuing a deal to acquire Abraxas Petroleum.
Reuters reported last night that Whiting Petroleum is in talks to buy Abraxas. According to the news agency's sources, it would be an all-stock deal, though the terms aren't yet known. The transaction would increase Whiting's land position in North Dakota's Bakken shale while also giving it a foothold in the fast-growing Delaware Basin of Texas. The combination would also enable Whiting to spread its costs over a larger production base, which would help improve returns.
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