Whitecap Resources, Veren to merge in $15B deal

Whitecap Resources and Veren have announced a strategic merger to form a dominant player in the energy sector, focusing on light oil and condensate production. The combined entity will be the largest landholder in Alberta’s Montney and Duvernay regions, with a strong presence in Saskatchewan.

A Veren company facility. Veren and Whitecap Resources plan to merge in a $15 billion deal. (Image: Veren)

The all-share transaction, valued at approximately $15 billion including net debt, will see Veren shareholders receive 1.05 Whitecap shares for each Veren share. Upon completion, Whitecap will maintain its management team, while four Veren directors, including President and CEO Craig Bryksa, will join Whitecap’s Board. The deal is expected to close by May 30, 2025.

“This merger creates a world-class energy producer with one of the deepest inventory growth sets in both the liquids-rich Montney and Duvernay plays,” said Whitecap President and CEO Grant Fagerheim. “We are confident that combining our assets will generate long-term, sustainable growth for our shareholders.”

Bryksa, the President and CEO of Veren, echoed this sentiment, noting that the merger will provide increased scale, stronger financials, and a competitive advantage in the industry. “The combined company will be stronger, more resilient, and well-positioned to take advantage of new opportunities while continuing to generate substantial free funds flow,” he said.

The merger will create a $15 billion enterprise with a production capacity of 370,000 barrels of oil equivalent per day (boe/d), with 63% of that being liquids. The new entity will dominate both the Montney and Duvernay, with an estimated 1.5 million acres of land and over 4,800 potential development locations, ensuring decades of future production growth.

In Saskatchewan, the combined company will become the second-largest producer, focusing on low-decline light oil assets, including waterflood projects that will support steady, low-cost production.

The merger is expected to be immediately accretive to Whitecap’s funds flow per share and free funds flow per share, even before factoring in synergies. With anticipated annual synergies exceeding $200 million, the deal is poised to drive enhanced profitability and shareholder value.

At closing, the combined company will forecast an annualized funds flow of $3.8 billion, based on commodity prices of $70 per barrel of WTI crude and C$2.00 per gigajoule of AECO natural gas. Free funds flow is projected to reach $1.2 billion after capital expenditures of $2.6 billion.

Whitecap has secured $3.5 billion in total credit capacity to support the merger, with backing from National Bank of Canada and Toronto Dominion Bank, as well as other