Tourmaline Oil Corp (TSX:TOU) has entered into an agreement to acquire all outstanding common shares of Crew Energy (TSX:CR) for a total consideration of C$1.3 billion. This all-stock transaction values each Crew share at C$6.69, with 18.778 million Tourmaline common shares being exchanged.
The transaction is anticipated to close on October 1, 2024. Tourmaline Oil Corp. opened trading at C$58.52 per share, while Crew Energy Inc. opened trading at C$6.45 per share.
Tourmaline’s acquisition of Crew Energy aligns with its consolidation strategy under the National Energy Code of Canada to bolster its long-term growth plan. This acquisition will significantly enhance Tourmaline’s South Montney asset base and contribute positively to its financial and reserve metrics.
The deal includes Crew Energy’s existing base production of 29,000-30,000 barrels of oil equivalent per day, proved and probable reserves of 473.2 million boe, and an extensive drilling inventory. Crew’s assets are strategically located adjacent to Tourmaline’s existing South Montney operated complex.
Both companies’ leadership expressed optimism about the acquisition, highlighting the potential for synergies and accelerated growth. The transaction is expected to be finalized on October 1, 2024.
Crew Energy is a Canadian producer focused on sustainable growth through resource development, while Tourmaline is Canada’s largest natural gas producer dedicated to producing low-cost natural gas. Tourmaline Oil Corp. has grown by 330% in the past five years, opening trading at C$58.52 per share, while Crew Energy Inc. has seen growth of 971% over the same period, opening trading at C$6.45 per share.
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