08:09 AM EDT, 08/12/2024 (MT Newswires) -- Tourmaline Oil (TOU.TO) on Monday said it will buy Crew Energy ( CWEGF ) for $1.3 billion including debt.

Tourmaline will pay with 18.8 million shares and assume net debt of $240 million. The acquisition, which immediately adds over $200 million to Tourmaline's anticipated 2025 free cash flow, is expected to close in early October, assuming all conditions are met.

The company updated its pro-forma 2024 average production guidance to 582,500 - 592,500 boepd from 575,000 - 585,000 boepd. The capital budget has been raised slightly to $2.05 billion from $2 billion to account for Crew's fourth quarter activity.

Updated 2024 guidance will be released along with Tourmaline's third quarter financial results, the company said.

The board approved a 6% increase to its quarterly dividend to $0.35 per share, from $0.33. The dividend will be paid on September 27.