07:31 AM EDT, 03/10/2025 (MT Newswires) -- Veren ( VRN ) said Monday it has entered into a definitive business combination agreement with Whitecap Resources to create a light oil and condensate producer with concentrated assets in the Alberta Montney and Duvernay.

The all-share transaction is valued at approximately $10.4 billion, inclusive of net debt.

Under the terms of the agreement, Veren ( VRN ) shareholders will receive 1.05 common shares of Whitecap for each Veren ( VRN ) share held, resulting in approximately 48% ownership for Whitecap and 52% for Veren ( VRN ).

The combined company is expected to have a production forecast of 370,000 barrels of oil equivalent per day, of which 63% liquids and a forecast annualized funds flow of C$3.8 billion ($2.62 billion). After annual capital investments of C$2.6 billion, free funds flow is forecast at C$1.2 billion.

The transaction is expected to close by May 30, subject to regulatory approvals and shareholder votes, including at least two-thirds of Veren ( VRN ) common shareholders and a majority of Whitecap common shareholders.

Veren ( VRN ) said it will continue its normal dividend schedule for Q1 but will cease regular dividends afterwards. If the transaction closes after May 31, 2025, Veren ( VRN ) shareholders will receive a Special Dividend of C$0.03833 per share monthly.