RE:RE:Why the price surge ? Any news ? U.S. oil and gas producer Devon Energy has approached Enerplus, a peer with a market value of C$3.9 billion ($2.9 billion), with an acquisition offer, people familiar with the matter said on Thursday.
Such a combination would continue the dealmaking spree seen in the North American oil patch in recent months, which has included many of Devon's rivals -- including Exxon Mobil, Chevron and Occidental Petroleum -- making significant acquisitions.
Devon declined comment. Enerplus did not immediately respond to a request for a comment.
The hunt for better reserves and economies of scale has fueled consolidation in the U.S. oil and gas sector over the course of the past year. Exxon agreed to pay $59.5 billion for Pioneer Natural Resources and $4.9 billion for Denbury. Chevron inked a $53 billion deal for Hess and bought PDC Energy for $6.2 billion. Occidental clinched a $12 billion deal for CrownRock.
There is no certainty that Devon and Enerplus will negotiate a deal, the sources said, requesting anonymity because the matter is confidential. Devon's proposed acquisition terms could not be learned.
Enerplus operates mainly in the Bakken Basin in North Dakota, and also has a footprint in the Marcellus shale region in Pennsylvania. Were a deal to materialize, it would complement Devon's existing presence in North Dakota and reduce its reliance on the Delaware Basin in Texas and New Mexico.