merger with Chord energy 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.