Chord Energy and Enerplus have finalised their previously announced $11bn merger deal aimed at forming a premier exploration and production company primarily focused on the Williston Basin in the US.
The combined firm will hold close to 1.3 million net acres and a Q4 2023 production of 287 thousand barrels of oil equivalent per day (287mboepd).
The stock and cash deal between Chord Energy and Enerplus was announced in February 2024.
Chord Energy, an American company listed on Nasdaq, engages in upstream operations involving crude oil, natural gas, and natural gas liquids within the Williston Basin.
On the other hand, Enerplus, a Canadian oil and gas firm, is listed on both the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). It holds light oil assets in the Bakken formation in North Dakota and has a presence in the Marcellus natural gas shale region in northeast Pennsylvania.
Under the merger agreement, each share of Enerplus was exchanged for 0.10125 shares of Chord Energy common stock and $1.84 in cash.
In line with the terms of the deal, Chord Energy issued around 20.7 million shares of common stock in the arrangement, which are now listed for trading on Nasdaq. With the arrangement’s completion, Enerplus’ common shares will cease to be listed for trading on the NYSE and are anticipated to be delisted from the TSX as well.
The consideration is inclusive of Enerplus’ net debt and values each share of the Canadian firm at $18.42.
In the combined entity, Chord Energy’s shareholders will have a stake of nearly 67% while Enerplus’ shareholders will hold the remaining 33% stake.
The deal was closed after approval by shareholders of both companies, followed by approval of the Court of King’s Bench of Alberta in late May 2024.
Chord Energy president and CEO Danny Brown said: “We are leveraging best practices from both companies to create a stronger, more efficient organisation and, at this point, see over $200m of annual synergies vs. our original estimate of $150m.
“Chord will continue to benefit its stakeholders, including the communities in North Dakota, Montana and the Fort Berthold Indian Reservation. Simultaneously, we will remain focused on maximising shareholder value through our core operating philosophy, which emphasises capital discipline and the generation of sustainable free cash flow.”
Following the completion of the merger, Chord Energy anticipates turning in line (TIL) 163 to 193 gross operated wells with approximately 75% working interest in FY24. This includes 62 to 73 gross operated TILs in Q2 2024.
