BY Richard Summerfield
Whitecap Resources is to merge with Veren in an all-stock deal worth around $10.43bn, including debt. The deal will create a leading Canadian light oil and condensate producer.
The combined company will have an enterprise value of $10.4bn and 370,000 barrels of oil per day (boe/d) of production, 63 percent of which is liquids, with significant overlap across both unconventional and conventional assets. The transaction is expected to close before 30 May 2025.
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. Furthermore, 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, president and chief executive of Whitecap. “Our combined company will include exceptional technical and support personnel from the two companies in both the office and field and an experienced Board of Directors that prioritizes sustainable and profitable growth to generate strong returns for our combined shareholders. We look forward to bringing Whitecap and Veren together and providing increased value to both sets of shareholders well into the future."
“This strategic combination unlocks significant value for all shareholders and together positions us as a stronger, more resilient company,” said Craig Bryksa, president and chief executive of Veren. “With enhanced scale, deep inventory, and increased free funds flow generation, we're building a business with a differentiated competitive advantage. Our combined balance sheet reinforces our financial strength and enhanced credit profile, ensuring the long-term success in an evolving market. Together we're unlocking synergies, creating new opportunities, and setting the stage for sustainable growth."
The combined firm, which will retain the Whitecap name, will be led by Whitecap’s current management team, with four Veren directors, including Mr Bryksa, joining the Whitecap board.
Veren was born a year ago following a name change from Crescent Point Energy. The firm’s average daily production was 188,721 boe/d during the final three months of 2024, up from 162,269 a year earlier. The company has expanded its presence in northwestern Alberta through acquisitions in recent years, including $900m for Shell Canada’s Kaybob Duvernay assets in 2021, $1.7bn for Spartan Delta Corp.’s Montney assets in 2023 and $2.55bn for Hammerhead Energy Corp.’s Montney assets.
News: Canada's Whitecap, Veren in $10.4 billion merger to boost shale presence