Canadian oil producer Whitecap Resources Inc. said on Dec. 8 it has agreed to buy rival TORC Oil & Gas Ltd. in an all-stock deal valued at about CA$552 million (US$430.81 million).
The collapse in fuel demand due to coronavirus-related lockdowns has hammered energy companies in Canada, the fourth-largest global oil producer, triggering a wave of consolidation and cost-cuts in the sector.
Cenovus Energy Inc. said in October it had agreed to buy Husky Energy Inc. for CA$3.8 billion (US$2.97 billion) in a deal that would create Canada's No. 3 oil and gas producer.
Under the deal announced on Dec. 8, shareholders of TORC will receive 0.57 Whitecap shares in exchange for each TORC share, representing a discount of about 4.3% to the last closing price of TORC shares.
Whitecap will also take on CA$335 million of TORC debt.
The oil producer said it would have an enterprise value of about CA$4 billion after the deal, which is expected to close on or before Feb. 25.
In August, Whitecap said it would buy NAL Resources Ltd, owned by Manulife Financial Corp, for CA$155 million. (US$1 = 1.2813 Canadian dollars)
Recommended Reading
Energy Transfer Seeks to Raise $3.8 Billion Through Offering of Notes
2024-01-11 - Energy Transfer is offering $3 billion in senior notes with the sale expected to settle Jan. 25.
Enterprise Prices $2B Worth of Senior Notes
2024-01-04 - Enterprise Products Partners will use proceeds from the public offering of notes for general company expenses, capital investments and repayment of debt maturing in February 2024.
Enterprise Declares Quarterly Cash Distribution
2024-01-08 - Enterprise Products Partners’ distribution will be paid Feb. 14 to common unitholders of record by Jan. 31.
TotalEnergies Ups Stake in Two Blocks Offshore Namibia
2024-01-10 - TotalEnergies is acquiring an additional 10.5% participating interest in Block 2913B and an additional 9.39% participating interest in Block 2912.
Vast Appoints Two Additional Directors to Board
2024-01-12 - Vast’s appointment of Peter Botten and Tom Quinn brings the board’s recently expanded size to seven members.