Strathcona Resources to Acquire Greenfire Resources for $838.17 Million

Strathcona Resources Ltd. entered into a merger agreement on November 8, 2026, to acquire Greenfire Resources Ltd. (GFR) in a deal valued at $838.17 million.

Deal Structure:

Greenfire shareholders may elect to receive either 0.25 shares of Strathcona for each share of Greenfire, or C$11 (~$7.80) in cash per Greenfire share.

The $7.80 cash consideration represents a 39.29% premium over the stock’s last close.

Neither the share option nor the cash option will be subject to proration, allowing all Greenfire shareholders to receive their election in full.

Company Profile:

Greenfire Resources is a Calgary-based oil sands producer that extracts and produces bitumen from its thermal oil sands assets in the Athabasca region of Alberta, Canada. The company uses Steam-Assisted Gravity Drainage (SAGD) technology to recover bitumen and sells its production into North American heavy oil markets.

Strathcona is a Calgary-based heavy oil producer engaged in the development and production of crude oil from thermal and enhanced oil recovery assets across Alberta and Saskatchewan. Its operations include the Cold Lake and Lloydminster regions, with production from both thermal and conventional heavy oil properties.

Deal Details and Timeline:

Waterous Energy Fund, the current holder of 72% of Greenfire’s outstanding shares and 57% of Strathcona’s outstanding shares, has entered into a support agreement in favour of the deal, under which Waterous has elected to receive the share option. Waterous is expected to own between 60% and 64% of Strathcona’s outstanding shares, depending on the elections made by Greenfire shareholders other than WEF.

Strathcona expects to issue approximately 43 to 60 million shares to Greenfire shareholders, representing 17% to 22% ownership of the combined business, and pay up to about C$740 million in cash.

Strathcona expects the existing Greenfire leadership team to continue to lead day-to-day operations of Greenfire’s assets within a new Strathcona business unit, SCR Central Athabasca, with Greenfire President Colin Germaniuk serving as President of SCR Central Athabasca. Like Strathcona’s three existing business units (SCR Cold Lake, SCR Lloydminster Thermal and SCR Lloydminster Conventional), SCR Central Athabasca will function semi-autonomously within Strathcona.

Greenfire appointed CIBC Capital Markets and RBC Capital Markets as its financial advisors, and Norton Rose Fulbright Canada, Bennett Jones and Scale as its legal advisors. Strathcona appointed Jefferies Securities and J.P. Morgan as its financial advisors, with Torys, Blake, Cassels & Graydon and Skadden, Arps, Slate, Meagher & Flom serving as its legal advisors.

The completion of the merger is anticipated by January 2027.

Strathcona is valuing Greenfire at 21.23 times EBITDA.

Deal Metrics:

For a comprehensive analysis of this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Greenfire Resources Ltd. (GFR) by Strathcona Resources Ltd.

The Deal Metrics page offers insights including:

– A spread history chart from the merger announcement to its eventual completion or failure.
– Detailed events throughout the merger process, including the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
– News updates and SEC filings.
– A history of deal updates.
– And much more.

Disclaimer: Please conduct your own thorough research before making any investment decisions related to the securities mentioned in this article. The completeness or accuracy of the information and data provided herein is not guaranteed.

Editor’s Note: Baranjot Kaur contributed to this article