Canada’s oil producer Whitecap Resources Inc. (SPGYF) entered a merger agreement on March 10, 2025, to merge with peer Veren Inc. (VRN) in an all-stock deal valued at about C$15 billion ($10.4 billion).
Under the terms of the agreement, Veren shareholders will receive 1.05 common shares of Whitecap for each common share of Veren held, valuing Veren at about $6.84 per share, representing a 39.31% premium from the stock’s last close.
Veren is a North American oil and gas producer focused on crude oil, natural gas liquids, and shale gas, with key assets in Alberta, Saskatchewan, British Columbia, Manitoba, and North Dakota. Formerly known as Crescent Point Energy, the company rebranded to Veren Inc. in May 2024 and is headquartered in Calgary, Canada.
Whitecap Resources is a Canadian oil and gas company engaged in the acquisition, development, and production of petroleum and natural gas properties across Western Canada. Founded in 2009 and headquartered in Calgary, Alberta, Whitecap operates in regions such as Smoky River, Peace River, Kaybob, Pembina, Ferrier, and Garrington.
The combined company will have “one of the deepest inventory growth sets of both liquids-rich Montney and Duvernay opportunities, along with conventional light oil opportunities in some of the most profitable plays in the Western Canadian basin,” said Whitecap CEO Grant Fagerheim.
The combined company is expected to produce 370,000 barrels of oil equivalent per day (boepd), with 63% consisting of liquids.
Whitecap shareholders will own approximately 48% of the combined company, while Veren shareholders will hold the remaining 52% upon completion of the deal, expected before May 30, 2025.
The combined company will operate under the Whitecap name and be led by Whitecap’s existing management team. Four Veren directors will join the board, which will include Craig Bryksa, Veren’s current CEO.
Whitecap is expected to continue its normal monthly dividend payments, while Veren will pay its first-quarter dividend as usual. If the transaction closes after May 31, 2025, Veren shareholders will receive a special monthly dividend of $0.03833 per share until the deal is finalized.
Veren is receiving financial advisory services from BMO Capital Markets and Scotiabank, with legal counsel from Norton Rose Fulbright Canada and Blake, Cassels & Graydon. Whitecap Resources is being advised financially by National Bank Financial and TD Securities, while Burnet, Duckworth & Palmer is providing legal counsel.
Whitecap Resources is acquiring Veren for 3.07 times its EBITDA.
To explore more about this merger and acquisition transaction, you can access the Deal Metrics page here:
Deal Metrics for the acquisition of Veren Inc. (VRN) by Whitecap Resources Inc. (SPGYF)
The Deal Metrics page will provide you with a comprehensive view of the merger, including:
– A spread history chart from the announcement to the completion or failure of the merger.
– Updates on each event as the merger progresses, such as regulatory approvals, shareholder votes, etc.
– Relevant news and SEC filings.
– A detailed history of deal updates.
– And much more.
Disclaimer: Please conduct your own due diligence before buying or selling any securities mentioned in this article. The completeness or accuracy of the content or data provided in this article is not guaranteed.
Editor’s Note: Baranjot Kaur contributed to this article