Negotiating in a meeting room
  • Chord Energy is set to acquire Enerplus Corporation in an agreement totaling US$11 billion through a stock and cash transaction
  • The combined company will operate in the Williston basin in North Dakota with roughly 1.3 million net acres and 287,000 barrels of oil equivalent per day of production
  • Enerplus shareholders will receive 0.10125 shares of Chord’s common stock and $1.84 in cash for each common share of Enerplus
  • Shares of Chord Energy are down 3.53 per cent to US$164.34 as of 12:09 p.m. ET

Chord Energy (NASDAQ:CHRD) and Enerplus Corporation (TSX:ERF) are set to form a US$11 billion oil company.

In a news release, Houston, Texas-based Chord Energy revealed it is set to acquire Calgary-based Enerplus in a stock and cash valuation that will combine the companies and form a premier position in the Williton basin in North Dakota.

The combined company will have roughly 1.3 million net acres and 287,000 barrels of oil equivalent per day of production.

According to BNN Bloomberg, Enerplus was previously rumoured to be potentially acquired by Devon Energy out of Oklahoma before Chord Energy made its official bid for the Calgary-based company.

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

“This combination further strengthens our Williston Basin position and represents a compelling opportunity for both companies’ shareholders,” Danny Brown, CEO of Chord Energy, said in a statement. “… The combined company is expected to benefit from improving returns, capital efficiency, low-cost inventory, and a peer-leading balance sheet, all of which support sustainable free cash flow generation and meaningful shareholder returns.”

Chord will issue roughly 20.7 million shares of its common stock.

The deal is expected to close by mid-2024.

Enerplus is an oil and gas exploration and production company focused on the development of North American oil and natural gas assets. Its portfolio includes light oil assets in Bakken, North Dakota, and a position in the Marcellus natural gas shale region in northeast Pennsylvania. 

Chord Energy is an independent exploration and production company with assets in the North Dakota and Montana regions of the Williston Basin.

Shares of Chord Energy are down 3.53 per cent to US$164.34 as of 12:09 pm ET. Shares of Enerplus Corp are up 10.18 per cent to C$24.46 as of 12:55 pm ET.

Join the discussion: Find out what everybody’s saying about these companies on the Chord Bullboard and Enerplus Corp. Bullboard, and check out other hot topics about stocks at Stockhouse’s stock forums and message boards.

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