US Code Energy Acquires Enerplus for $11 Billion

Daily Production of 287,000 Barrels of Oil

U.S. energy company Code Energy announced on the 21st (local time) that it will acquire Enerplus in a merger and acquisition (M&A) deal worth $11 billion, according to the daily Wall Street Journal (WSJ).

According to the report, the combined company will be able to produce 287,000 barrels of oil per day on a 1.3 million-acre site within the Williston Basin, spanning North Dakota, Montana, and parts of Canada.

The deal will be conducted with 90% stock and 10% cash. Enerplus shareholders will receive 0.10125 shares of Code Energy common stock per share and $1.84 in cash. Based on the closing price that day, WSJ added that this values Enerplus at approximately $18.42 per share. Code Energy and Enerplus shares closed at $167.96 and $16.42, respectively, on that day.

The combined company will be led by Code Energy CEO Danny Brown. Of the 11 board members, seven are from Code Energy. The acquisition process is expected to be completed by mid-year. CEO Brown stated in a release, "This combination will further strengthen our position in the Williston Basin and provide attractive opportunities for shareholders of both companies."

Recently, M&A activity among U.S. energy companies has been increasing. Following ExxonMobil and Chevron's acquisitions worth $60 billion and $53 billion respectively last year, Diamondback Energy announced this month that it will acquire Endeavor Energy for $26 billion.

This content was produced with the assistance of AI translation services.