Chord Energy, Enerplus to combine in $11B stock and cash transaction

Chord Energy (CHRD) and Enerplus (ERF) announced they have entered into a definitive arrangement agreement under which Chord will combine with Enerplus in an approximately $11B stock and cash transaction. The combined company will have a premier Williston Basin position with deep, low-cost inventory, approximately 1.3M net acres, combined 4Q23 production of 287 MBoepd, and enhanced free cash flow generation to return capital to shareholders. Under the terms of the transaction, each common share of Enerplus will be exchanged for 0.10125 shares of Chord common stock and $1.84 per share in cash, representing 90% stock and 10% cash consideration. Upon completion of the transaction, Chord shareholders will own approximately 67% of the combined company and Enerplus shareholders will own approximately 33% on a fully diluted basis. The combined company’s enterprise value of approximately $11 billion is inclusive of Enerplus’ net debt, based on the transaction exchange ratio, and the closing share prices for Chord and Enerplus as of February 20, 2024. Following close of the transaction, the board of directors of the combined company will increase to 11 members and will initially comprise seven representatives from Chord and four representatives from Enerplus, including Ian Dundas, who will also serve as Advisor to the CEO of Chord. Danny Brown will serve as Director, President and Chief Executive Officer of the combined company. The remainder of the company’s leadership team will include Michael Lou, Chord’s Chief Financial Officer, Darrin Henke, Chord’s Chief Operating Officer and Shannon Kinney, Chord’s General Counsel, who will continue to serve in their respective capacities in the combined company. The combination has been unanimously approved by the boards of directors of both companies. The transaction is expected to close by mid-year 2024. The transaction is subject to customary closing conditions in the United States and Canada, as well as the approvals by Chord and Enerplus’ shareholders described above, the approval of the Court of King’s Bench of Alberta, the listing of shares of Chord’s stock to be issued in the transaction on NASDAQ and regulatory clearances or approvals.