ARC Resources to Acquire Seven Generations Energy in All-Share Merger

Updated 7 months 2 weeks ago

The companies have entered into a definitive agreement to combine in an all-share transaction valued at $8.1 billion, inclusive of net debt. The combined company will retain the ARC Resources name and Calgary headquarters. Seven Generations shareholders will receive 1.108 common shares of ARC for each common share. Expected production in 2021 will be approximately 138,000 barrel of oil and 1.2 billion cubic feet of gas. Annual cost savings are estimated at $110 million by 2022. ARC's Hal Kvisle and Terry Anderson will remain chair and CEO with Seven Generations' David Holt becoming COO. This deal will result in Seven Generations shareholders owning 51% of the company with closing expected in the second quarter of 2021. RBC served as an advisor to ARC, and CIBC advised Seven Generations.