- Crescent Point Energy (TSX:CPG) agreed to acquire Hammerhead Energy (TSX:HHRS) in a C$2.55 billion cash-and-stock deal
- The Calgary-based oil and gas company now holds the dominant position in the Montney oil fairway, one of North America’s largest unconventional petroleum plays
- Once the deal is closed by December, Crescent Point will become Canada’s seventh-largest oil and gas exploration and production company by volume
- Hammerhead Energy Inc. opened trading at C$20.94 per share, and Crescent Point Energy Corp. opened trading at C$10.15 per share
Crescent Point Energy (TSX:CPG) agreed to acquire Hammerhead Energy (TSX:HHRS) in a C$2.55 billion cash-and-stock deal.
The Calgary-based oil and gas company now holds the dominant position in the Montney oil fairway, one of North America’s largest unconventional petroleum plays. Crescent Point will acquire 424.9 square kilometres and 800 drilling locations in the area.
Once the deal is closed by December 2023, Crescent Point will become Canada’s seventh-largest oil and gas exploration and production company by volume, with production expected to total more than 200,000 barrels of oil equivalent per day (boe/d). Crescent Point will increase its production in the Montney region by 56,000 boe/d in 2024, to 94,000 boe/d. The deal also includes taking on approximately C$455 million of Hammerhead’s net debt.
Each Hammerhead Share will be exchanged for C$15.50 of cash consideration and C$5.50 in value in the form of common shares of Crescent Point.
Crescent Point Energy Corp. is a Canadian oil and gas exploration company engaged in the business of acquiring, developing, and holding interests in petroleum and natural gas properties and assets. Its crude oil and natural gas properties and related assets are in Saskatchewan, Alberta and the United States.
Hammerhead Energy Inc. has assets and operations in Alberta targeting the Montney formation. The company is focused on the exploration, development and production of light-oil-rich opportunities in the Alberta Montney.
Hammerhead Energy Inc. opened trading at C$20.94 per share and Crescent Point Energy Corp. opened trading at C$10.15 per share.
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