Canada-based producer Enerplus Corporation closed its previously announced acquisition of Bruin E&P, a pure play Williston Basin private company, for a total cash purchase price of $465 million. The purchase price was funded by Enerplus fully drawing its new 3-year $400-million term facility, along with a portion of the proceeds from its C$132-million equity offering completed on 3 February 2021. The company remains undrawn on its $600-million bank credit facility.
“Operationally, the Bruin assets fit well; all in the Bakken with a material position in the Fort Berthold area, directly adjacent to our acreage,” said Ian Dundas, president and CEO of Enerplus, during a February conference call highlighting the deal. “We were able to acquire the company at a valuation that we believe was attractive, both on an absolute and a relative basis, and underpinned by Bruin’s existing production.”
The Bruin deal comes with 24,000 BOE/D of current production, 10 net drilled uncompleted wells, and about 100 net drilling core locations. Enerplus believes there is potential upside beyond these locations.
Enerplus said the transaction will be immediately accretive to its shareholders, with "robust accretion" to adjusted funds flow per share and free cash flow per share.