Chord Energy, a shale oil and gas producer, is buying rival Enerplus in an $11 billion deal.
The merger would gives Chord more acreage and production in the Williston Basin in North Dakota, South Dakota, Montana, and Canada. The deal will be 90% stock and 10% cash, with Chord shareholders having two-thirds control of the combined entity.
It’s…
a shale oil and gas producer, is buying rival
The merger would gives Chord more acreage and production in the Williston Basin in North Dakota, South Dakota, Montana, and Canada. The deal will be 90% stock and 10% cash, with Chord shareholders having two-thirds control of the combined entity.
It’s the latest example of consolidation in the industry as companies vie for more domestic output. The U.S. has become the biggest producer of oil and gas, overtaking Saudi Arabia.
Last year,
announced it was buying
plans to buy
, and
is acquiring CrownRock. Earlier this month,
and Endeavor Energy Resources announced they are merging.
Oil prices have stayed relatively high since the end of the Covid-19 pandemic, though they’re substantially lower now than they were in 2022 after Russia invaded Ukraine. Recently oil prices have been pushed up by violence in the Middle East and attacks on shipping vessels in the Red Sea.
Advertisement – Scroll to Continue
West Texas Intermediate, the U.S. benchmark, traded little changed at $77.95 a barrel Thursday, 9% higher than a year ago. Brent crude, the international standard, was up 0.1% at $83.13 a barrel.
Write to Brian Swint at brian.swint@barrons.com
Read More: Oil’s M&A Bonanza Continues as Chord Buys More Onshore U.S. Assets