Canada’s Whitecap, Veren announce $10.4 billion merger to form major shale producer

Whitecap Resources and Veren today announced a strategic combination to create a leading light oil and condensate producer with concentrated assets in the Alberta Montney and Duvernay. The all-share deal holds a value of approximately $15 billion CAD ($10.4 billion USD), and the combined company will be the largest Alberta Montney and Duvernay landholder, a prominent light oil producer in Saskatchewan and will leverage the combined asset base and technical expertise to drive improved profitability and superior returns to shareholders. The transaction is expected to close before May 30, 2025.

“We are excited to bring together two exceptionally strong asset bases to create one world-class energy producer with 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 Grant Fagerheim, Whitecap’s President & CEO. “Our combined company will include exceptional technical and support personnel from the two companies in both the office and field and an experienced Board of Directors that prioritizes sustainable and profitable growth to generate strong returns for our combined shareholders. We look forward to bringing Whitecap and Veren together and providing increased value to both sets of shareholders well into the future.”

“This strategic combination unlocks significant value for all shareholders and together positions us as a stronger, more resilient company,” added Craig Bryksa, Veren’s President & CEO. “With enhanced scale, deep inventory, and increased free funds flow generation, we’re building a business with a differentiated competitive advantage. Our combined balance sheet reinforces our financial strength and enhanced credit profile, ensuring the long-term success in an evolving market. Together we’re unlocking synergies, creating new opportunities, and setting the stage for sustainable growth.”

Transaction highlights:

• The combined company will have an enterprise value of $15 billion¹ and 370,000 boe/d² (63% liquids) of corporate production with significant overlap across both unconventional and conventional assets. The combined company becomes the largest Canadian light oil focused producer and the seventh largest producer in the Western Canadian Sedimentary Basin, with significant natural gas growth potential.
• The combined company becomes the largest producer in the high margin Kaybob Duvernay and Alberta Montney with approximately 220,000 boe/d of unconventional production. The combined company becomes the largest landholder in the Alberta Montney and the second largest landholder across unconventional Montney and Duvernay fairways with 1.5 million acres in Alberta. The combined company boasts over 4,800 total development locations3 in the Montney and Duvernay to drive decades of future production growth.