Date of Award
2015
Document Type
Master's Thesis
Degree Name
Master of Science in Applied Natural Resource Economics (MS)
College, School or Department Name
School of Business and Economics
Advisor
Gary Campbell
Abstract
In July 2014, it was announced that Whiting Petroleum would acquire Kodiak Oil & Gas in an all-stock deal valued at $6 billion. Both companies are headquartered in Denver and operate primarily in the Bakken but in a deal of this size it is possible for executives to hold ulterior motives for mergers such as higher compensation and golden parachutes. Acceptable motivating factors for engaging in a merger include cost savings through synergies and economies of scale, increased market power, asset diversification, and price volatility. A net asset valuation was used to help determine if shareholders should vote in favor of the merger. Through increased market share and cost savings, the merger can be deemed a success for Whiting Petroleum.
Recommended Citation
Beeker, Alexander M., "NET ASSET VALUATION OF WHITING PETROLEUM’S ACQUISITION OF KODIAK OIL AND GAS", Master's Thesis, Michigan Technological University, 2015.