Canadian oil and gas company Veren (VRN) announced a $15 billion merger agreement with fellow Canadian oil and gas operator Whitecap Resources (SPGYF) today. While the deal is a merger, Whitecap Resources will be the company that survives it. The combined company will also be led by Whitecap Resources’ current management team but four executives of Veren will join the company’s Board of Directors, including Veren CEO Craig Bryksa.
The terms of the agreement include 1.05 Whitecap Resources shares for each share of VRN stock that investors hold. The two companies are also expected to benefit from synergies after the combination. Once combined, Whitecap Resources will be the largest Alberta Montney and Duvernay landholder, as well as a large light oil producer in Saskatchewan.
Veren and Whitecap Resources expect the deal to close before May 30, 2025. Whitecap Resources also notes the deal will be immediately accretive to its standalone funds flow per share and free funds flow per share before accounting for expected synergies.
VRN & SPGYF Stock Movement Today
Veren shareholders appear supportive of the deal with Whitecap Resources as VRN stock climbed 18.13% higher in pre-market trading this morning. That’s good news for investors as the stock was down 4.47% year-to-date and 31.52% over the past 52 weeks.
SPGYF stock also climbed higher today alongside the merger news, resulting in a 2.52% increase. That’s another positive as the shares have fallen 7% year-to-date and 1.05% over the last year.
Is SPGYF Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for SPGYF is Strong Buy based on five Buy and one Hold ratings over the last three months. With that comes an average price target of $9.57, a high of $10.09, and a low of $8.35. This represents a potential 47% upside for SPGYF stock.
See more SPGYF stock analyst ratings
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