Whitecap Resources, a Canadian oil company, is set to merge with Veren, also an oil and gas company in Canada, in an all-stock transaction valued at C$15bn ($10.43bn), including debt.
The merger will position the combined entity as the “seventh-largest” oil and gas producer in Canada and the largest Canadian light oil-focused producer.
This strategic move will notably enhance the company’s presence in Alberta’s Montney and Duvernay shale regions.
The combined company will boast 1.5 million acres of land across the two key shale plays, with two-thirds in Montney and the remaining third in Duvernay, according to Whitecap vice-president Joey Wong.
The merger is projected to yield a production capacity of 370,000 barrels of oil equivalent per day (boepd), with a 63% focus on liquids.
Fagerheim said: “We are more resilient and better able to manage the current macro environment, including the ongoing threat of tariffs and commodity price volatility.”
Meanwhile, Tom Pavic, president of Sayer Energy Advisors, anticipates that the total merger and acquisition activity in the Canadian oil industry this year will mirror last year’s robust performance, which saw $20.4bn in deals, reported Reuters.
Veren investors are set to receive 1.05 Whitecap shares for each share they hold, equating to C$9.82 based on the last closing price, a 39% premium on Veren’s closing price.
Post-merger, Whitecap shareholders will retain approximately 48% of the new company, with the remainder held by Veren’s shareholders.
The transaction is expected to be finalised before 30 May, with the combined company continuing under Whitecap’s current management team and welcoming four Veren directors to its board, including CEO Craig Bryksa.
In January 2025, Pembina Pipeline acquired a 50% stake in Whitecap Resources’ 15-07 Kaybob Complex through Pembina Gas Infrastructure, its joint venture with KKR.
