Oil and gas firm Veren rises on proposed merger with Whitecap Resources in $10.4 billion deal

U.S.-listed shares of oil producer Veren VRN.TO, VRN.N rise 18.3% to $5.81 premarket

Co will merge with Whitecap Resources WCP.TO in an all-stock deal valued at C$15 billion ($10.43 billion) including debt, to form an energy giant

Veren shareholders will receive 1.05 shares of Whitecap for each share held, or C$9.82 based on the last close, which implies a deal value of about C$6 billion, as per Reuters calculation

It represents a 39% premium to Veren's close on Friday

VRN shareholders will own 52% of the combined company, while WCP shareholders will own the rest 48%

The combined company expects to have production of 370,000 barrels of oil equivalent per day, of which 63% will be liquids

The transaction is expected to close before May 30, 2025

As of last close, VRN shares were down 4.47% YTD

($1 = 1.4384 Canadian dollars)