Energy News Beat
- Whitecap Resources and Veren have agreed to a $10.4 billion all-share merger, creating a major Canadian oil and condensate producer.
- The combined company will have an enterprise value of $10.4 billion and produce 370,000 barrels of oil equivalent per day.
- The merger will create the largest Canadian light oil-focused producer and a significant player in the Kaybob Duvernay and Alberta Montney regions.
Whitecap Resources and Veren have agreed to merge in a US$10.4 billion (C$15 billion) deal that will create a leading Canadian light oil and condensate producer, the companies said on Monday.
The firms announced that they had entered into a definitive business combination agreement to combine in an all-share transaction valued at approximately US$10.4 billion (C$15 billion), inclusive of net debt.
The combined company will have an enterprise value of US$10.4 billion (C$15 billion), and 370,000 barrels of oil per day (boe/d) of production, 63% of which is liquids, with significant overlap across both unconventional and conventional assets, Whitecap and Veren said.
The company that will result from the merger will be the largest Canadian light oil-focused producer and the seventh largest producer in the Western Canadian Sedimentary Basin, with significant natural gas growth potential.
The combined company will become the largest producer in the high margin Kaybob Duvernay and Alberta Montney with about 220,000 boe/d of unconventional production. It will also be the largest landholder in the Alberta Montney and the second largest landholder across unconventional Montney and Duvernay fairways with 1.5 million acres in Alberta.
“We are excited to bring together two exceptionally strong asset bases to create one world-class energy producer with one of the deepest inventory growth sets of both liquids-rich Montney and Duvernay opportunities, along with conventional light oil opportunities in some of the most profitable plays in the Western Canadian basin,” said Grant Fagerheim, Whitecap’s president and CEO.
The deal between Whitecap and Veren entails Veren shareholders receiving 1.05 common shares of Whitecap for each Veren common share held. The combined company will be led by Whitecap’s existing management team under the Whitecap name with four Veren directors to join the Whitecap Board of Directors, including the current President and CEO of Veren, Craig Bryksa.
The transaction is expected to close before May 30, 2025.
The M&A wave in Canada consists of opportunistic – rather than necessary – deals, analysts say. And many of these would likely be focused on non-oil sands assets such as the Duvernay Shale or Williston Basin.
By Tsvetana Paraskova for Oilprice.com
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The post Whitecap and Veren Merge to Create US$10-Billion Canadian Light Oil Producer appeared first on Energy News Beat.
