Market MoversAt this point, it would appear that none of the analysts expect any counter offers to Chord's bid. GLTA
On The Rise Enerplus Corp. gained after announcing an agreement to be acquired by U.S. energy firm Chord Energy Corp. , creating a combined entity with an enterprise value of US$11-billion.
Under the terms of the agreement, Enerplus shareholders will receive 0.10125 shares of Chord common stock and US$1.84 in cash for each common share of Enerplus owned at closing.
Chord said it would issue about 20.7 million shares of its common stock.
The combined company is expected to be a premier operator in the Williston Basin, with approximately 1.3 million net acres.
Enerplus operates mainly in the Bakken Basin in North Dakota and also has a footprint in the Marcellus shale region in Pennsylvania.
“The announced transaction represents US$11-billion cash and stock deal that implies a value of US$18.85/sh, or CAD$25.44/sh for Enerplus shareholders; this is near the top end of the range (CAD$22-$26/sh.) we had suggested when the Devon bid was being rumored,” said Stifel analyst Cody Kwong in a research note. “Based on the attractive valuation for ERF shareholders and the pro forma entity looking attractive at first blush, we are supportive of the transaction at this level.”