Western Canada operators Whitecap Resources and Veren Inc. have agreed to a CAD $15 billion merger that will create a light-oil and condensate producer with concentrated assets in the Alberta Montney and Duvernay. The combined company will be the largest Alberta Montney and Duvernay landholder, a light-oil producer in Saskatchewan, and will leverage the combined asset base and technical expertise to drive profitability and returns to shareholders.
The companies have entered into a definitive business combination agreement to combine in an all-share transaction. The combined company will have an enterprise value of CAD $15 billion and 370,000 BOE/D (63% liquids) of production with significant overlap across both unconventional and conventional assets and will be the largest Canadian light-oil-focused producer and the seventh largest producer in the Western Canadian Sedimentary Basin, with significant natural gas growth potential, according to the companies.
The combined company will be led by Whitecap’s existing management team under the Whitecap name with four Veren directors to join the Whitecap board of directors, including the current president and CEO of Veren, Craig Bryksa. The transaction is expected to close before 30 May 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 and 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.”
Under the terms of the agreement, Veren shareholders will receive 1.05 common shares of Whitecap for each Veren common share held. Following the closing, Whitecap shareholders will own approximately 48% and Veren shareholders will own approximately 52% of the total common shares outstanding of the combined company.
The new Whitecap becomes the largest producer in the Kaybob Duvernay and Alberta Montney with about 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 and boast over 4,800 total development locations in the Montney and Duvernay to drive future production growth.
The combined acreage holdings of Whitecap, Veren in Western Canada. SOURCE: Whitecap Resources.
Operating, supply chain, and corporate synergies are expected to result in annual savings of CAD $200 million independent of commodity prices.
“This strategic combination unlocks significant value for all shareholders and together positions us as a stronger, more resilient company,” said Craig Bryksa, Veren’s president and 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 long-term success in an evolving market. Together we're unlocking synergies, creating new opportunities, and setting the stage for sustainable growth.”
The Veren board has approved the agreement and has unanimously recommended that Veren shareholders vote in favor of the resolution to approve the transaction at the special meeting of Veren shareholders to be held on or about 6 May 2025. The Whitecap board also unanimously approved the agreement and recommends that Whitecap shareholders vote in favor of the combination.
