Whitecap Resources Acquires NAL Resources in All-Stock Transaction

Updated 5 months 1 week ago

Whitecap Resources entered into an agreement to acquire NAL Resources in an all-stock transaction valued at $155 million in August 2020. NAL is wholly owned by Manulife Financial with oil and gas operations in Alberta and Saskatchewan producing 27,000 boe/d (55% oil and NGLs). Whitecap will issue Manulife 58.3 million common shares in exchange for all issued and outstanding NAL shares. Manulife will own 12.5% of the combined entity with a lock-up agreement for periods 12, 15, and 18 months from closing. The company was founded in 1990 as a wholly owned subsidiary of Manulife Financial.

NAL's production and lands overlap 80% of Whitecap's current asset base. Pro forma, the combined company will have 81,000-83,000 boe/d of production based on $250-300 million in capital investments. NAL is anticipated to have no debt outstanding.