Strathcona Resources commences offer to acquire MEG Energy

Strathcona Resources (STHRF) has formally commenced its offer to acquire all of the issued and outstanding common shares of MEG Energy Corp. (MEGEF) not already owned by Strathcona or its affiliates for 0.62 of a common share of Strathcona and $4.10 in cash per common share of MEG. The Offer and Circular will be made available to all MEG shareholders in accordance with applicable securities laws. The Offer is open for acceptance until 5 p.m. on Monday, September 15, 2025. Strathcona also announced the execution of an equity commitment letter with Waterous Energy Fund, the holder of 79.6% of the outstanding Strathcona Shares, through certain limited partnerships comprising Waterous Energy Fund III, pursuant to which WEF III has committed to purchase an additional 21.4 million Strathcona Shares through subscription receipts, conditional upon completion of the Offer. Pursuant to the terms of the equity commitment letter, the investment will be completed at a subscription price of $30.92 per subscription receipt, being equivalent to the price of the Strathcona Shares on May 15, 2025 prior to Strathcona announcing its intention to make the Offer, equating to an incremental investment by WEF in Strathcona of approximately $662 million. To Strathcona’s knowledge, this represents the largest investment at one time by a single shareholder, public or private, in the Canadian upstream oil and gas sector since 2014.