Canada’s oil and gas firm Whitecap Resources will merge with peer Veren in an all-share deal including debt to form a C$15 billion ($10.43 billion) company, the companies said on Monday.
The combined company will be the largest landholder in Alberta Montney and Duvernay – regions that hold some of the biggest shale resources in Canada and have seen significant investment in recent years.
The North America energy sector has seen a wave of deals in past two years, and the sector’s focus on consolidation of core growth areas and improvement of operational efficiency is expected to continue in 2025.
The combined company is estimated to have production of 370,000 barrels of oil equivalent per day (boepd), of which 63% will be liquids.
Whitecap has offered 1.05 of its shares for each Veren share held, or C$9.82 based on the last close. It represents a 39% premium to Veren’s close on Friday.
Whitecap shareholders will own about 48% of the combined company, while Veren shareholders will own the rest following closure of the deal, expected before May 30.
The combined company would be led by Whitecap’s existing management team under the Whitecap name. Four Veren directors would join the company’s board, which would include Craig Bryksa, the current CEO of Veren.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)