Calgary, Alberta-based Whitecap Resources and Veren have closed their all-share business combination valued at CA$15 billion (US$10.43 billion), according to a May 12 press release.

The merger, initially announced March 10, creates the seventh largest oil and natural gas producer and the fifth largest natural gas producer in Canada, the companies said.

The light oil and condensate producer boasts concentrated assets in the Alberta Montney and Kaybob Duvernay across 1.5 million acres with more than 4,800 potential drilling sites.

Whitecap also announced agreements to dispose of non-strategic assets for approximately $270 million, including about 8,000 boe/d (90% liquids) of medium oil production in southwest Saskatchewan and an 8.333% working interest in a natural gas facility in the Kaybob region. The sale is expected to close before June 30.

Following the merger, Whitecap increased its average 2025 production forecast to a range of 295,000 boe/d to 300,000 boe/d (63% liquids) with a capex of approximately $2 billion, the company said.

Unconventional development on the acquired lands has begun. The combined company is proceeding with the integration of their technical teams and reviews of respective assets, Whitecap said.

The unconventional Montney and Duvernay assets include drilling 67 (58.1 net) wells, of which 66 (63.5 net) wells are expected to come on stream in the second half of 2025, the combined company said.

Whitecap said the conventional assets include drilling 91 wells (74.8 net) in Saskatchewan and 10 wells (5.2 net) in Alberta. 

The combined company will be led by Whitecap's existing management team under the Whitecap name.

The board of directors will include seven Whitecap directors, with Ken Stickland as chair and Grant Fagerheim as president & CEO. Four new directors are joining from Veren.

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