Calgary-based Harvest Energy Trust (Toronto; NYSE: HTE) and Viking Energy Royalty Trust (Toronto: VKR.UN) have agreed to merge. The combined trust, which will retain the Harvest name, will have an initial enterprise value in excess of C$4 billion. The transaction is expected to close by the end of March. The merger will involve the exchange of four Viking units for one Harvest unit on a tax-deferred basis in Canada. Upon completion of the merger, Harvest unitholders will own approximately 55% of the combined trust and Viking unitholders will own approximately 45%. The combined trust will be Canada's fourth-largest oil and gas royalty trust and will have a production base of approximately 64,000 barrels of oil equivalent per day (50% oil) and 215 million barrels of oil equivalent of proved-plus-probable reserves, 700 drilling locations and more than 760,000 net acres of undeveloped land. The trust will have a reserve life-index of approximately 9.2 years. National Bank Financial is financial advisor to Harvest, while CIBC World Markets is financial advisor to Viking. TD Securities Inc. is mergers and acquisitions advisor and BMO Nesbitt Burns Inc., GMP Securities Ltd. and Tristone Capital Inc. are strategic advisors to Harvest, while Scotia Capital Inc. is mergers and acquisitions advisor, and RBC Capital Markets, Canaccord Capital Corp. and FirstEnergy Capital Corp. are acting as strategic advisors to Viking.
Recommended Reading
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.
PrairieSky Adds $6.4MM in Mannville Royalty Interests, Reduces Debt
2024-04-23 - PrairieSky Royalty said the acquisition was funded with excess earnings from the CA$83 million (US$60.75 million) generated from operations.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
EQT Declares Quarterly Dividend
2024-04-18 - EQT Corp.’s dividend is payable June 1 to shareholders of record by May 8.
Matador Resources Announces Quarterly Cash Dividend
2024-04-18 - Matador Resources’ dividend is payable on June 7 to shareholders of record by May 17.