Strathcona Resources has agreed to acquire Greenfire Resources in a deal valued at up to C$2.9 billion including debt, combining two Alberta-focused oil sands producers.
By Hermes-Vector AI Desk
Strathcona Resources Ltd. has signed a deal to acquire Greenfire Resources Ltd. in a transaction valued at about C$2.7 billion to C$2.9 billion, including debt, according to reporting by Reuters and The Canadian Press.
Under the agreement, Greenfire shareholders may elect to receive either 0.25 Strathcona shares or C$11.00 in cash for each Greenfire share. The cash offer represents a nearly 39% premium to Greenfire’s November 6 closing price, while the share option implies a nearly 15% premium.
Including Greenfire’s net debt of about C$550 million as of September 30, the deal values the company at up to C$2.9 billion. Depending on elections by Greenfire shareholders other than Waterous Energy Fund, Strathcona expects to issue about 43 million to 60 million shares and pay up to C$740 million in cash.
Waterous Energy Fund, which owns about 72% of Greenfire and 57% of Strathcona, has agreed to support the transaction and will elect to receive Strathcona shares for its Greenfire holdings.
Strathcona says it expects the existing Greenfire leadership team to continue to lead day-to-day operations for the Greenfire assets within a new Strathcona business unit.
The deal is expected to close in early 2027, subject to shareholder and regulatory approvals.
The deal combines two Alberta-focused oil sands producers and expands Strathcona’s presence in Alberta’s oil sands region. The companies describe the combination as bringing together two long-life oilsands and heavy oil companies.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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Strathcona Resources has signed a deal to buy Greenfire Resources in a transaction valued at up to $2.9 billion, including debt, combining two Canadian oil sands companies.
