Tourmaline Oil Corp Canada’s largest natural gas producer, has announced its acquisition of Crew Energy Inc. in an all-stock deal valued at $1.3 billion CAD (approximately $947 million USD), including debt. This move is part of the ongoing consolidation within the oil and gas industry.
The transaction values Crew Energy at approximately $6.69 per share, a 72% premium over its closing price on Friday, according to a statement from Crew released on Monday. As part of the deal, Crew shareholders will receive 0.114802 of a Tourmaline share for each Crew share they hold. The acquisition also includes the assumption of $240 million in Crew’s net debt.
This acquisition is the latest in a series of strategic purchases by Tourmaline. In October, the company agreed to acquire Bonavista Energy Corp. for around $1.5 billion CAD.
In conjunction with the deal, Tourmaline’s board has approved an increase in the company’s quarterly dividend from 33 to 35 Canadian cents per share, according to a separate statement.
