A major player in the local oil and gas industry is about to become part of the sixth largest energy company in Canada. Seven Generations Energy announced Wednesday that it has reached an all-stock merger agreement with ARC Resources worth roughly $8.1 billion.
The combined company will operate under the ARC Resources name and will stay headquartered in Calgary. It will reportedly be able to produce more than 340,000 barrels of oil equivalent per day, making it the largest operator in the Montney Shale gas basin, and the country’s largest condensate producer, third-largest natural gas producer, and sixth-largest upstream energy company.
The merger is expected to save the company approximately $110 million annually by 2022. Seven Generations shareholders will receive 1.108 common shares of ARC for each common share of Seven Generations held. Once the deal is closed, ARC shareholders will own roughly 49 per cent and Seven Generations shareholders roughly 51 per cent of the total shares outstanding.
Seven Generations currently has its operations headquarters in Grande Prairie. There’s no word yet on what the merger will mean for employees.