Whitecap Resources and Veren combine to create a C$15 billion Canadian Energy giant

The companies announced on Monday that Canada's Whitecap Resources, an oil and gas company, will merge with Veren through a merger of equals including debt in order to create a C$15 Billion ($10.43 Billion) company.

The combined company is the largest landholders in Alberta Montney & Duvernay, regions which have attracted significant investment over the past few years and hold some of Canada's biggest shale reserves.

Energy deals have been a big deal in North America over the past two years. The sector will continue to focus on improving operational efficiency and consolidating its core growth areas in 2025.

Estimates show that the combined company will produce 370,000 barrels equivalent of oil per day (boepd), 63% of which will be liquids.

Whitecap offered C$9.82 or 1.05 shares of its own for every Veren share. This represents a 39% increase over Veren's Friday close.

After the merger, which is expected to close before May 30, Whitecap shareholders are expected to own 48%, and Veren shareholders the remainder.

Whitecap would retain its existing management team, which will continue to be in charge of the combined company. Craig Bryksa would be the CEO of the new company. Four Veren directors will join the board. ($1 = 1.4384 Canadian dollars) (Reporting by Tanay Dhumal in Bengaluru; Editing by Shailesh Kuber)

(source: Reuters)