Strathcona Resources has agreed to acquire oil sands producer Greenfire Resources in a deal valued at about C$2.7 billion to C$2.9 billion, including roughly C$550 million of Greenfire’s net debt, the companies announced Sunday.
Greenfire shareholders can choose C$11.00 in cash or 0.25 of a Strathcona share for each share they own, with neither option subject to proration. The cash option is a 39% premium to Greenfire’s Nov. 6 close. The share option, worth C$9.09 at Strathcona’s Nov. 6 close, is a 15% premium. Greenfire’s U.S.-listed shares rose more than 35% in premarket trading Monday from Friday’s close of $5.60.
Waterous Energy Fund, which holds 72% of Greenfire and 57% of Strathcona, signed a support agreement and will take shares. Strathcona expects to issue about 43 million to 60 million shares and pay up to about C$740 million in cash. Waterous would own 60% to 64% of Strathcona after closing.
Year-to-date production totals 153,000 barrels per day on a combined basis, with 119,000 from Strathcona and 34,000 from Greenfire, pro forma for the Connacher acquisition. Combined proved plus probable reserves are about 3.0 billion barrels. Strathcona expects about C$75 million of annual run-rate synergies within the first year.
The deal requires two-thirds approval at each company’s shareholder meeting, a minority vote that excludes Waterous, Competition Act clearance, Toronto Stock Exchange approval and an order from an Alberta court. Meetings are expected in January 2027, with closing shortly afterward.
Investors will watch the mix of cash and share elections and the shareholder votes.
