Canadian oil groups Whitecap and Veren announce $15bn merger

(Sharecast News) - Canadian oil producers Whitecap Resources and Veren have announced plans to merge in a $15bn deal that they say will create a "world-class energy producer". Under the terms of the deal, Veren shareholders will receive 1.05 common shares of Whitecap for each Veren share they own.

The combined organisation will be led by Whitecap's existing management under the Whitecap name, with four Veren directors joining the board, including the current president and chief executive Craig Bryksa.

The transaction, which is expected to close before the end of May, will unlock "significant value for all shareholders and together positions us as a stronger, more resilient company", Bryksa said.

The combined group will produce 370,000 barrels of oil equivalents per day and will be the largest Canadian light oil-focused producer and the seventh largest producer in the Western Canadian Sedimentary Basin.

"With enhanced scale, deep inventory, and increased free funds flow generation, we're building a business with a differentiated competitive advantage," Bryksa said.

Whitecap shares were down 12.1% at $8.22 by 1139 in Toronto, while Veren shares had surged 17.1% to $8.27.