"This strong-on-strong combination will create one of the largest pure-play Canadian conventional light oil producers and the ninth largest publicly traded oil and gas company in
"The enhanced size and scale … will allow us to more effectively navigate commodity price volatility through a significantly enhanced free funds flow profile. We are expecting an improving commodity price environment over the next 12 months."
Shares in both companies soared on Wednesday as analysts applauded the deal, with Whitecap gaining as much as
"We see the transaction as a strategic home run," said Desjardins analyst
"This is exactly the type of M&A we think investors are looking for," chimed in analysts from
The merger of the two companies comes as Whitecap awaits the close of its
Under the agreement announced after markets closed Tuesday, each TORC share can be exchanged for 0.57 of a Whitecap share, valuing it at
The deal is expected to close in late February. It must win approval by holders of two-thirds of TORC's shares and a simple majority vote by Whitecap's shareholders.
Whitecap said it will increase its monthly dividend by six per cent to
The deal is attractive because of the companies' geographically overlapping major assets in southeast
In response to a question, he said some TORC assets in
Whitecap says its average production will be about 82,000 boe/d with a capital budget of about
Whitecap said the
Desjardins' MacCulloch pointed out CPPIB stands to own about six per cent of Whitecap if the deal is completed, while NAL owner
This report by
Companies in this story: (TSX:WCP, TSX:TOG)
© 2020 The Canadian Press. All rights reserved., source