Chord Energy has agreed to acquire Canada's EnerPlus for $11 billion** and cash, continuing a series of oil and gas deals and creating a leading producer in the Bakken shale formation in the northern plains of the United States.
EnerPlus said on Wednesday that investors will receive 1. per share$84 plus 010,125 common shares of Chord Energy.
Oil executives are working to expand their portfolios of future drilling sites to support cash flow. Last week, U.S. Diamondback Energy agreed to buy Texas-based drilling company Ende**or Energy Resources for $26 billion, ending about $250 billion a year in U.S. oil and gas deals that merged a group of scattered wildhands into larger companies.
The acquisition of Calgary, Canada-based EnerPlus will increase Chord Energy's production to the equivalent of 2870,000 barrels of oil equivalent per day, bringing its total net acres in the Williston Basin to 1.3 million acres.
Executives at Houston-based Chord Energy boast of their ability to drill 3 miles of underground wells laterally, a distance that is growing in popularity in the United States in hopes of extracting oil and gas more efficiently. The geology of the Bakken shale formation, which spans North Dakota and Montana in the United States, has prompted the company to conduct longer lateral drilling prior to a number of other fields. Chord Energy chief executive officer Danny Brown said on Wednesday that synergies at the combined company will provide more opportunities to drill longer horizontal wells.
U.S. and Canadian regulators will need to approve the deal. Over the past year, U.S. Joe Biden has scrutinized shale deals of all sizes, and the company and its lawyers say they haven't seen such scrutiny in years.
Upon completion of the transaction, Chord Energy's board of directors will increase to 11 people, including four representatives from EnerPlus. The deal gives EnerPlus an implied value of $18$42. The transaction is expected to close in mid-2024. Citi is the Chief Financial Advisor to CHOD. Evercore is a Principal Consultant to EnerPlus. (Compiled by Xiao Chen).
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