The combined entity will have a production of 287,000 barrels of oil equivalent per day (boepd) in the fourth quarter (Q4) of 2023. Credit: WORKSITE on Unsplash.

US-based Chord Energy has agreed to acquire Canada’s Enerplus to create a Williston basin-focused exploration and production (E&P) company with an enterprise value of around $11bn (C$14.79bn).

With around 1.3 million net acres, the combined entity will produce 287,000boepd in Q4 2023.

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

Based on the closing share prices on 20 February 2024, the implied value per Enerplus share is $18.42.

Chord will issue around 20.7 million shares as stock consideration to Enerplus shareholders.

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Chord Energy president and CEO Danny Brown said: “This combination further strengthens our Williston Basin position and represents a compelling opportunity for both companies’ shareholders.

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“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.”

Post completion of the transaction, Chord shareholders will have around a 67% stake in the combined company, while Enerplus shareholders will own around a 33% interest, on a fully diluted basis.

Due to be completed by mid-year 2024, the transaction is subject to customary closing conditions and approvals from shareholders of both companies in the US and Canada, among others.

Enerplus president and CEO Ian Dundas said: “This transaction brings together Chord’s and Enerplus’ premier asset bases, operational abilities and technical acumen to create a combined company positioned to drive further success, deliver competitive returns and peer-leading shareholder distributions.”

Earlier this month, Reuters reported that US-based oil and gas company Devon Energy was planning to acquire Enerplus.