Whitecap to acquire Veren in $15B all-stock deal, creating major shale player

Lauren Krugel · The Canadian Press

· Posted: Mar 10, 2025 12:35 PM EDT | Last Updated: March 10

Whitecap Resources Inc. and Veren Inc. are joining forces successful a $15-billion dollar woody to make a large Canadian shale subordinate that they accidental volition basal stronger against governmental and marketplace upheaval than if they were to each spell it alone.

"The pro forma institution volition beryllium much resilient and amended capable to negociate the existent macro environment, including the ongoing menace of tariffs and commodity terms volatility," Whitecap CEO Grant Fagerheim told analysts connected a league telephone Monday.

The transaction would marque Whitecap the seventh-largest Canadian lipid shaper by production, the biggest landholder successful the Montney and Duvernay successful occidental Alberta and the second-largest lipid shaper successful Saskatchewan.

Under the all-stock transaction announced Monday, Veren shareholders are to get 1.05 shares of Whitecap for each Veren stock they own.

The combined steadfast is to beryllium led by Whitecap's existing absorption squad nether the Whitecap name.

Four directors are to articulation the Whitecap committee of directors, including Veren's existent main executive, Craig Bryksa.

The woody is expected to adjacent earlier May 30 and needs shareholder, tribunal and regulatory approval. After it's done, existent Whitecap shareholders volition ain astir 48 per cent of the combined entity and existing Veren shareholders volition ain the rest.

Fagerheim said the woody gives his institution a starring presumption successful the Montney and Duvernay shales successful occidental Alberta, which are affluent successful invaluable earthy state liquids. It volition besides summation its airy lipid presumption successful Saskatchewan.

"Our combined institution volition see exceptional method and enactment unit from the 2 companies successful some the bureau and tract and an experienced committee of directors that prioritizes sustainable and profitable maturation to make beardown returns for our combined shareholders," Fagerheim said successful a quality release.

Bryksa says the transaction positions the caller institution to person a competitory advantage.

"Both companies person been strategical and disciplined successful their attack to gathering and processing these large assets," helium told analysts.

"I genuinely judge the combined company, with an enhanced excess currency travel profile, beardown fiscal presumption and compelling instrumentality connected superior is perfectly positioned to beryllium much competitory and make further shareholder value."

The companies are projecting much than $200 cardinal successful outgo savings and efficiencies erstwhile they travel together.

Whitecap volition person full regular accumulation of 370,000 barrels with the deal.

It and Veren each had a five-year program to turn to 250,000 barrels of regular production. An expert asked Fagerheim whether a 500,000 barrel-a-day people would present beryllium plausible aboriginal this decennary for Whitecap.

"I would marque the presumption astatine this clip that we would beryllium capable to execute these types of maturation metrics by putting the 2 companies together," Fagerheim replied.

Veren, which changed its sanction from Crescent Point Energy past year, saw its shares spike much than 15 per cent to $8.14 successful midday trading connected the TSX.

Whitecap shares were down much than 14 per cent to $8.02.

"We presumption the transaction positively to the grade that it provides shareholders of some companies with vulnerability to a importantly larger entity with overlapping interests successful respective areas of the Western Canadian Sedimentary Basin, including the Alberta Montney and Duvernay plays, and successful Saskatchewan," Desjardins expert MacCulloch wrote successful a note.