Whitecap Resources to Acquire Kicking Horse in $300 Million Deal
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Fast-growing Whitecap Resources Inc. says it has struck a $300-million cash-and-shares deal to buy private rival Kicking Horse Oil & Gas Ltd., an indirect subsidiary of Quantum Energy Partners.
The Calgary-based company says it will issue 34.5 million Whitecap common shares and pay $56 million in cash, while assuming net debt of about $54 million, in the deal expected to close at the end of May.
Kicking Horse currently produces about 8,000 barrels of oil equivalent per day (32 percent oil and liquids) but Whitecap says it expects to increase and maintain production at about 18,500 boe/d over the next 12 to 15 months by drilling eight to 10 wells per year on the acquired lands.
It says it plans to spend $75 million this year to complete four wells and drill six more on the Kicking Horse lands.
Whitecap recently raised its 2021 production guidance to about 102,500 boe/d on a capital budget of about $290 million. It says it now expects 2021 production to average about 108,000 boe/d (76 per cent liquids) with a capital budget of about $365 million.
Whitecap completed its acquisitions of producers NAL Resources Ltd. and TORC Oil & Gas Ltd. in return for shares in January and February.
“We are extremely excited to get our hands on this asset,” said Whitecap CEO Grant Fagerheim on a conference call on Monday.
“This allows us to continue to advance our footprint into the Montney play on a measured basis. Our asset aggregation strategy is intentionally focused on delivering long-term growth and free funds flow for our shareholders and this asset fits exceptionally well,” added Fagerheim.
Source: The Canadian Press
About Whitecap Resources
Whitecap Resources Inc., oil and gas company, acquires and develops petroleum and natural gas properties in Canada. Its principal properties are located in West Central Alberta, Northwest Alberta and British Columbia, Southeast Saskatchewan, West Central Saskatchewan, and Southwest Saskatchewan. As of February 24, 2021, it had a total proved plus probable reserves of 507,287 thousand barrels of oil equivalent. Whitecap Resources Inc. is headquartered in Calgary, Canada.
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