CA - Strathcona Resources to buy Pipestone Energy in all-stock deal

2023-08-01 07:23:09 ET

Canadian oil producer Strathcona Resources said Tuesday it will go public by acquiring Pipestone Energy ( OTCPK:BKBEF ) in an all-share deal.

Pipestone ( OTCPK:BKBEF ) shareholders will receive ~9.05% of the pro forma equity in the new company, with existing Strathcona shareholders comprised of Waterous Energy Fund and Strathcona employees owning the rest.

The exchange ratio implies an initial market capitalization of ~C$8.6B, which when combined with ~C$2.9B in pro forma debt outstanding, equates to an initial enterprise value of ~C$11.5B.

Following the closing, Strathcona will be the fifth largest oil producer in Canada, with current production of ~185K boe/day.

More on Pipestone Energy:

• Financial and valuation comparison to sector peers
• Analysis: Pipestone Energy: Strong Condensate Prices Boost The Cash Flow
• Stock price return: Up 1% YTD, down 37% in the past 12 months

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