Enerplus Corp T.ERF

merger with Chord energy

[scarface9]

Chord Energy (NASDAQ:CHRD) and Enerplus (ERF) said Wednesday they agreed to a cash and stock merger valued at ~$11B, including debt, creating a Williston Basin-focused E&P company; Enerplus +10.8%, Chord +4.8% after-hours.

 

Under the deal terms, each Enerplus (ERF) common share will be exchanged for 0.10125 Chord (CHRD) common shares and $1.84/share in cash, representing 90% stock and 10% cash consideration.

 

Upon completion of the transaction, Chord (CHRD) shareholders will own roughly two thirds of the combined company and Enerplus (ERF) shareholders will own about one third on a fully diluted basis.

 

The combined company is expected to be a premier operator in the Williston Basin, with ~1.3M net acres (98% in the Williston) and Q4 2023 production of 287K boe/day (90%-plus Williston); oil would comprise ~56% of the combined company's production.

 

The combined company said it expects to see administrative, capital and operating synergies of as much as $150M/year.

[matt2018]

its a decent opening offer but I dont believe it will be the final one. We will now find out if Devon was or is still interested as well. Its a great energy company, been in business a long time. Many funds own millions of shares, lets see if they get on board with it.

[Kpitreal]

Agree wiyh you. Offer is too cheap. $21 usd should be the minimum. Company is almost debt free.

[retiredcf]

Just did some calculations based on Chord's closing price from yesterday. ERF shareholders would receive about US$17.00 (C$23.00) worth of Chord shares + $1.84 so we'd come in at just under C$25.00 in total. So one would expect it to trade today in the $24.50 - $25.00 range and that's where other suitors will need to begin. GLTA 

[milo12]

Seems light to me because of the small amount of debt ERF has. If you apply these numbers to a WCP or CPG and subtract the debt differential the percent premium does not cover WCP or CPG higher debt. 

[matt2018]

The cash portion I am assuming is US $ regardless, not so sure the large fund shareholders will go along with this offer.

[marcrobert]

there we go 25.50, let's see if we can get to 26, probably lost of shorts covering the us stock

[retiredcf]

I forgot about this so that would add another $0.65 and bring the total up to around C$26.15 assuming there are no other offers. GLTA