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

By Claudia Assis

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), 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) and Chevron Corp. (CVX).

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Under the terms of the transaction, a share of Enerplus (CA:ERF) 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.

-Claudia Assis

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02-21-24 1819ET

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