Canadian oil producer Whitecap Resources Inc. said Aug. 31 it would buy NAL Resources Ltd., owned by Manulife Financial Corp, for CA$155 million (US$118.59 million) as it looks to boost its core Alberta and Saskatchewan assets.
Whitecap said it would issue 58.3 million of its shares to Manulife in exchange for all the issued and outstanding shares of NAL, which operates in Canada's Saskatchewan and Alberta.
Insurance and financial services provider Manulife will own about 12.5% of the combined company.
The deal marks growing interest in mergers among smaller Canadian oil producers to bolster their portfolios, as uncertainty about future oil demand persists.
The COVID-19 pandemic destroyed fuel demand and left dozens of energy companies without the prospect of drilling their way out of debt or bankrupt, making consolidations a viable solution for many smaller players.
Separately on Aug. 31, Calgary, Alberta-based oil and gas company Obsidian Energy Ltd. offered two shares for every share of Bonterra Energy Corp.
That would value Bonterra at about C$35 million, or C$1.06 per share, a 29.3% discount to its close on Aug. 28. Bonterra shareholders would own about 48% in the combined company, Obsidian said.
Last month, top independent U.S. oil producer ConocoPhillips Co. said it would buy land from Kelt Exploration Ltd. in Canada's Montney shale oil play in a $375 million deal. (US$1 = $1.3070 Canadian dollars)
Recommended Reading
Utility, Clean Energy Company Allete to Go Private in $6.2B Deal
2024-05-06 - The Minnesota-based utility said on May 6 it agreed to be acquired by a partnership led by Canada Pension Plan Investment Board and Global Infrastructure Partners.
CorEnergy Infrastructure to Reorganize in Pre-packaged Bankruptcy
2024-02-26 - CorEnergy, coming off a January sale of its MoGas and Omega pipeline and gathering systems, filed for bankruptcy protect after reaching an agreement with most of its debtors.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Excelerate Declares Quarterly Cash Dividend
2024-02-26 - Excelerate Energy’s dividend is payable March 28 to Class A common stockholders of record by March 13.