.jpg)
56 minutes ago
3
Article content
Tamarack Valley Energy Ltd. agreed to buy Headwater Exploration Inc. for $10 billion, the latest in a wave of deals in Canada’s oil patch.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Oil sands producers have been looking to consolidate as the industry prepares for the possibility of new pipeline expansions and higher capital spending, giving a small group of companies an increasingly dominant position in the region.
Article content
Article content
Article content
The combined company, which will be led by Tamarack management, will produce about 80,000 barrels of oil equivalent a day and benefit from cost savings that will enable an increase in shareholder returns, according to a statement on Tuesday.
Article content
Steve Buytels, president of Tamarack, will run the combined company and join the board of directors, according to the statement.
Article content
Under the terms of the all-stock transaction, Tamarack shareholders will own 66.5 per cent of the combined entity, with Headwater investors holding the remainder. Tamarack will issue a total of 237.8 million common shares.
Article content
The combined company is expected to see immediate synergies through the integration of operations, marketing and corporate offices. In connection with the deal, Tamarack plans to increase its quarterly dividend by 20 per cent to $0.06 per share starting in December, according to the statement.
Article content
National Bank of Canada Capital Markets is acting as exclusive financial adviser to Tamarack, while Peters & Co. is working with Headwater. The deal is expected to close midway through the fourth quarter, according to the statement.
Article content
Article content
Advertisement 1
English (US)