All-stock deal valued at about US$7.25 billion aims to create a premier Clearwater producer with expected close in 4Q 2026.
Business • Energy • Canada
Tamarack Valley Energy and Headwater Exploration announced a definitive all-stock arrangement on Sep. 8 valued at C$10 billion, or about US$7.25 billion at Reuters FX. Headwater holders would receive 1.0 Tamarack share per Headwater share. Tamarack would issue about 237.8 million shares, leaving Tamarack holders with 66.5% and Headwater holders 33.5% of the combined company.
The companies guide to run-rate Clearwater production above 80,000 boe/d after close, expected mid-way through the fourth quarter of 2026, subject to shareholder, court, Competition Act, and TSX approvals. A contingent plan would raise the quarterly dividend 20% to $0.06 per share from December 2026 if the deal closes.
Non-core assets would spin into Tributary Exploration Inc., led by current Headwater management. Break fees were not disclosed in the day-one release. Tamarack shares rose more than 4% and Headwater nearly 2% on the announcement, per Reuters.
Sources: Company newswire Sep. 8; Reuters; Bloomberg.
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