Calgary

Calgary-based Enerplus to be acquired by Chord Energy in $3.8B US deal

Calgary-based oil company Enerplus will be purchased by Chord Energy, a Texas-based oil and gas company, in a stock and cash deal worth $3.8B US.

As part of the deal, Enerplus shareholders will receive Chord Energy shares and cash

A pumpjack draws out oil from a well head near Calgary, Alta., Saturday, Sept. 17, 2022. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer.
Enerplus is headquartered in Calgary and has an office in Denver. It will soon be acquired by American oil and gas company Chord Energy. (Jeff McIntosh/The Canadian Press)

Enerplus Corp., headquartered in Calgary, has signed a deal to be acquired by U.S. company Chord Energy Corp. in a stock-and-cash deal worth about $3.8 billion US.

Chord Energy chief executive Danny Brown says the deal strengthens the company's Williston Basin position and represents a compelling opportunity for both companies' shareholders.

Under the terms of the agreement, Enerplus shareholders will receive 0.10125 shares of Chord common stock and $1.84 US per share in cash for each Enerplus share.

Based on the closing price as of Tuesday, the implied value for each Enerplus share is $18.42 US.

Once the deal is complete, Chord shareholders will own about two-thirds of the combined company, while Enerplus shareholders will own one-third.

The combined company will have an enterprise value of about $11 billion US.