Kodiak’s Missing Premium Found in Future Whiting Deal: Real M&A

Kodiak Oil & Gas Corp. shareholders will get zero premium for agreeing to sell to Whiting Petroleum Corp. The real payout may be down the road.

The $4 billion stock swap values Kodiak shares at a discount to their average price in the 20 days leading up to yesterday’s deal announcement. It’s rare to see an acquisition without a premium, and the last “take-under” of a North American oil or gas producer was in 2008, according to data compiled by Bloomberg. Whiting and Kodiak say the benefit for shareholders comes from owning a stronger company that can accelerate drilling in the resource-rich Bakken shale formation.