Tourmaline Oil Corp (TSX:TOU), Canada's largest natural gas producer, has agreed to acquire Crew Energy Inc (TSX:CR) for C$1.3 billion (US$947 million), including debt, as part of ongoing consolidation in the oil and gas sector.
The all-stock deal is valued at roughly $6.69 per share, representing a 72% premium over Crew's closing price on Friday, as stated by Crew in a Monday announcement.
Under the terms, Crew shareholders will receive 0.114802 of a Tourmaline share for each Crew share held, with the transaction accounting for $240 million in Crew's net debt.
This acquisition adds to Tourmaline's recent series of deals, including its $1.5 billion purchase of Bonavista Energy Corp. in October.
The deal involves Crew Energy’s Montney portfolio in British Columbia, which includes around 30,000 barrels of oil equivalent per day (boe/d) in production volume and another 220,000 or so acres of land, RBC analysts highlighted.
“We view the transaction positively, building on Tourmaline’s strategy of consolidating the NE BC Montney fairway at cyclical lows,” analysts wrote, “and applying Tourmaline cost synergies.”
Tourmaline shares added 2.6% in Toronto on Monday morning, while Crew Energy flew around 73%.