Chord Energy Corp. and Enerplus Corp. Merger

Chord Energy Corp. and Canada’s Enerplus Corp. have announced a merger in an $11 billion stock and cash deal, focusing on establishing a dominant presence in North Dakota’s Williston shale basin.

Creating a Powerhouse in the Oil Industry

Chord, resulting from the merger of Oasis Petroleum and Whiting Petroleum in 2022, foresees that the combined entity will possess a robust, cost-effective inventory in the Williston basin. This basin spans across parts of South Dakota and Montana, along with neighboring Canadian provinces.

The news of the merger has already made an impact, with Chord’s shares surging by 4% during the extended trading session on Wednesday. This agreement adds to the flurry of mergers and acquisitions happening within the energy sector, following significant transactions involving industry giants like Exxon Mobil Corp. and Chevron Corp.

Deal Overview and Benefits

In this transaction, shareholders of Enerplus will receive 0.10125 shares of Chord common stock and $1.84 per share in cash for each Enerplus share held. Notably, the merger will be structured as 90% stock consideration and 10% cash consideration.

Chord's CEO Danny Brown expressed enthusiasm about fortifying their position in the Williston Basin through this collaboration. He highlighted the opportunities presented by Enerplus’ high-quality inventory, emphasizing a shared commitment to enhance operational efficiency by merging best practices from both companies.

This strategic move is poised to shape a more robust and efficient entity that leverages the strengths of both Chord Energy Corp. and Enerplus Corp., propelling them towards greater success in North America's competitive oil industry landscape.