By Adriano Marchese
Whitecap Resources and Veren have agreed to combine their companies in a 15 billion Canadian dollar deal ($10.44 billion) that will enlarge their Alberta oil and gas footprint.
The two companies said Monday that they entered into a definitive business agreement to merge, creating a larger light oil and condensate producer with concentrated assets in Alberta's Montney and Duvernay regions.
Under the terms of the agreement, Veren shareholders will receive 1.05 common shares of Whitecap for each of their own.
The C$15 billion transaction value also includes debt.
The newly-combined business will be led by Whitecap's existing management team, with four of Veren's directors set to join the board, including its chief executive, Craig Bryksa.
The two companies together forecast production of 370,000 barrels of oil equivalent a day, of which 63% are liquids from unconventional and conventional assets.
Whitecap and Veren said that the combined company will become the largest Canadian light oil-focused producer and the seventh largest producer in the Western Canadian Sedimentary Basin, with significant natural gas growth potential.
Additionally, the companies expect that their union will be immediately accretive to Whitecap's standalone funds flow per share and free funds flow per share, rising 10% and 26%, respectively.
The companies also expect over C$200 million synergies annually, and to set itself on a path of growth.
The transaction is expected to close on May 30.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 10, 2025 06:28 ET (10:28 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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