Devon Energy has reportedly offered to acquire Enerplus, a Canada-based oil and gas exploration and production company with operations in the US.
The approach made by the New York Stock Exchange (NYSE)-listed Devon Energy has been reported by Reuters, citing undisclosed sources having knowledge about the matter.
Enerplus is listed on both the NYSE and the Toronto Stock Exchange. It has a market valuation of C$4bn ($2.97bn).
According to the sources, there is uncertainty on whether Devon Energy and Enerplus will engage in negotiations for a deal. The proposed acquisition terms from Devon Energy could not be obtained.
Devon Energy declined to comment on the report, according to the news agency, while there was no immediate response from Enerplus which was also approached for comment.
Based on data from the London Stock Exchange Group (LSEG), investment firm Kimmeridge Energy Management holds a 3.8% stake in Enerplus, making it the company’s second-largest shareholder.
Kimmeridge Energy Management stated that Enerplus should ensure that any agreed-upon consideration accurately reflects the company’s value.
Kimmeridge Energy Management managing partner and lead portfolio manager Mark Viviano, has been quoted by Reuters, as saying: “Any potential transaction for Enerplus would need to reflect the quality of their remaining core inventory in the Bakken.”
Founded in 1986, Enerplus has light oil assets in North Dakota’s Bakken region and holds a stake in the Marcellus natural gas shale area in northeastern Pennsylvania.
The company’s primary focus lies in the heart of the Bakken/Three Forks light oil shale play, where it controls approximately 235,600 net acres. Additionally, Enerplus has an interest in roughly 32,500 net acres within the dry gas section of the Marcellus shale formation.
In 2023, Enerplus achieved an average daily production of 100,000 barrels of oil equivalent (BOE), with a liquids production of 62,200 barrels per day.
On the other hand, Devon Energy, has operations spanning the Delaware Basin, Eagle Ford, Anadarko Basin, Powder River Basin, and Williston Basin. Its production in Q3 2023 reached 665 thousand barrels of oil equivalent per day (MBOED), with oil accounting for 48% of the total.
In late 2022, the company closed the $1.8bn acquisition of Eagle Ford operator Validus Energy.
