Chord Energy, Canada’s Enerplus to combine into $11 billion company, with eye on ‘premier’ position in North Dakota’s Williston basin

By: market watch Posted On: February 21, 2024 View: 29

Chord Energy Corp. and Canada’s Enerplus Corp. said late Wednesday they have agreed to merge in an $11 billion stock and cash deal with an eye toward stablishing a “premier” position in North Dakota’s Williston shale basin.

Chord CHRD, +2.57%, itself formed after the merger of Oasis Petroleum and Whiting Petroleum in 2022, said that a combined company would enjoy a “deep, low-cost inventory” in the basin, which also straddles parts of South Dakota and Montana as well as neighboring Canadian provinces.

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Shares of Chord jumped 4% in the extended session Wednesday. The deal is the latest in a burgeoning merger-and-acquisitions field for energy companies, including major deals for Exxon Mobil Corp. XOM, +2.04% and Chevron Corp. CVX, +0.94%.

Under the terms of the transaction, a share of Enerplus ERF, +1.60% would be exchanged for 0.10125 shares of Chord common stock and $1.84 a share in cash, representing 90% stock and 10% cash consideration, the companies said.

“This combination further strengthens our Williston Basin position and represents a compelling opportunity for both companies’ shareholders,” Chord Chief Executive Danny Brown said in a statement.

Enerplus’ Williston Basin position “brings high-quality inventory, and we are excited to leverage best practices from both companies to create a stronger, more efficient entity,” he said.

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