01:06 PM EDT, 03/10/2025 (MT Newswires) -- Veren ( VRN ) and Whitecap Resources agreed to merge in an all-share transaction worth roughly 15 billion Canadian dollars ($10.39 billion) that will create the largest Canadian light oil-focused producer.

Veren ( VRN ) shareholders will get 1.05 shares of Whitecap in exchange for each Veren ( VRN ) share, the companies said Monday.

The combined entity is expected to become the largest Canadian light oil-focused producer and the seventh biggest in the Western Canadian Sedimentary Basin, with "significant" growth potential in natural gas, the companies said. They anticipate the deal to close before May 30.

"Together we're unlocking synergies, creating new opportunities, and setting the stage for sustainable growth," Veren ( VRN ) Chief Executive Craig Bryksa said.

Oil producer Veren's ( VRN ) New York Stock Exchange-listed shares were up 15% intraday Monday.

Production of the combined company, which will operate under the Whitecap name, is expected to reach 370,000 barrels of oil equivalent per day. The deal will be immediately accretive to Whitecap's stand-alone funds flow per share and free funds flow per share, before incorporating anticipated annual synergies of more than CA$200 million.

Four Veren ( VRN ) directors will join the Whitecap board, including Bryksa.

"We are excited to bring together two exceptionally strong asset bases to create one world-class energy producer with one of the deepest inventory growth sets of both liquids-rich Montney and Duvernay opportunities, along with conventional light oil opportunities in some of the most profitable plays in the Western Canadian basin," Whitecap CEO Grant Fagerheim said.

Whitecap has secured commitments for CA$3.5 billion in total credit capacity to support the combination.

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