Chord Energy And Enerplus To Combine In $11B Transaction Creating Premier Williston-Focused E&P Company With Top-Tier Shareholder Returns
Portfolio Pulse from Benzinga Newsdesk
Chord Energy Corporation (CHRD) and Enerplus Corporation (ERF) announced a definitive arrangement to combine in an $11 billion transaction, creating a premier Williston Basin-focused E&P company. The combined entity will have 1.3 million net acres, 287,000 Boepd production in 4Q23, and is expected to generate significant free cash flow and shareholder returns. The deal, comprising 90% stock and 10% cash, will see Chord shareholders owning 67% and Enerplus shareholders 33% of the new company. The merger aims to enhance operating scale, drive returns, and achieve cost synergies up to $150 million annually, with a post-transaction return of capital at 75%+ of free cash flow.
February 21, 2024 | 10:26 pm
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POSITIVE IMPACT
Chord Energy is set to combine with Enerplus in an $11 billion transaction, aiming to create a leading Williston Basin-focused E&P company. Chord shareholders will own approximately 67% of the combined entity.
The merger with Enerplus positions Chord Energy to enhance its operational scale and drive shareholder returns, with significant cost synergies and a strong combined asset base. The positive outlook on free cash flow and shareholder returns post-merger supports a likely increase in stock value.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Enerplus is merging with Chord Energy in an $11 billion deal, post which Enerplus shareholders will own approximately 33% of the combined company. The merger is expected to generate significant free cash flow and shareholder returns.
The merger with Chord Energy offers Enerplus an opportunity to be part of a larger, more efficient entity with enhanced shareholder returns and operational scale. The expected synergies and strong financial position of the combined company suggest a positive impact on Enerplus's stock value.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100