Whitecap, Veren to Merge in $15 Billion Deal to Form Leading Canadian Light Oil Producer
(P&GJ) — Whitecap Resources Inc. and Veren Inc. have entered a $15 billion all-share transaction that will combine their assets, creating a leading Canadian light oil and condensate producer with key holdings in Alberta’s Montney and Duvernay regions.
The merger, which is expected to close by May 30, 2025, will see the combined company become the largest landholder in the Alberta Montney and Duvernay.
Under the terms of the agreement, Veren shareholders will receive 1.05 Whitecap common shares for each Veren share they own. The new company will be led by Whitecap’s current management team, with four Veren directors, including Veren CEO Craig Bryksa, joining the board.
The combined company will be Canada’s largest producer of light oil, with 370,000 boe/d in production, 63% of which will be liquids. The deal gives the new company a significant presence in the Montney and Duvernay, with 1.5 million acres of land and over 4,800 development locations. This scale, combined with strong free funds flow, sets the stage for sustained growth.
"We are excited to bring together two exceptionally strong asset bases to create one world-class energy producer…Our combined company will include exceptional technical and support personnel," Grant Fagerheim, Whitecap's president and CEO, said.
The merger will be immediately accretive to Whitecap’s funds flow per share and free funds flow per share. The new company is also poised to capture over $200 million in annual synergies. Additionally, the enhanced credit profile will further strengthen the balance sheet and reduce borrowing costs, facilitating continued investment in the business.
The company will continue Whitecap’s dividend policy of $0.73 per share, representing a 67% increase for Veren shareholders.
The transaction requires approval from shareholders of both companies, with meetings planned for May 2025. Following shareholder approval, the deal is subject to customary regulatory and legal conditions.
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