August 12, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas, including oil and gas stocks, reports on trading for Crew Energy Inc. (TSX: CR; OTCQB: CWEGF), a Canadian liquids-rich natural gas producer.
The stock is trading at $6.89, gaining $2.99, up 76.79% on volume of over 9 million shares. The stock made the TSX top gainer list and had a day’s high of $6.94.
Crew Energy announced that, with the unanimous support of its Board of Directors (the “Crew Board”) and endorsement from Crew’s largest institutional shareholder, the Company has entered into a definitive arrangement agreement (the “Agreement”) with Tourmaline Oil Corp. (“Tourmaline”) (TSX: TOU) pursuant to which Tourmaline has agreed to acquire all of the issued and outstanding common shares of Crew (“Crew Shares”) in an all-stock transaction (the “Transaction”). The Transaction is valued at approximately $6.69 per Crew Share (the “Purchase Price”) or $1.3 billion, including Crew’s net debt, which is estimated to be $240 million (including closing costs) as at the targeted closing date of October 1, 2024. Based on the closing prices of common shares of Tourmaline (“Tourmaline Shares”) and Crew Shares at the close of markets on August 9, 2024, the Purchase Price represents a premium of approximately 72%.
Under the terms of the Agreement, holders of Crew Shares (“Crew Shareholders”) will receive 0.114802 of a Tourmaline Share in exchange for each one (1) Crew Share held (the “Exchange Ratio”). The proposed Transaction is to be completed by way of a plan of arrangement (the “Arrangement”) under the Business Corporations Act (Alberta) and, subject to satisfaction of conditions typical for a transaction of this nature, is expected to close on or about October 1, 2024.
“We are excited about this transformative transaction with Tourmaline, which reflects the successful culmination of Crew’s focused efforts to delineate and grow our high-quality Montney asset base, while providing Crew Shareholders continued exposure to the assets, participation in a dividend and the ability to benefit from future growth and value creation,” said Dale Shwed, President and CEO of Crew. “As Canada’s leading natural gas producer and a well-capitalized, investment-grade organization, Tourmaline has a proven track record of developing large-scale and impactful resource projects which will now include Crew’s assets in Groundbirch and the Greater Septimus area, with the financial capacity to do so on an accelerated timeframe.”
STRATEGIC BENEFITS FOR CREW SHAREHOLDERS
Crew has assembled a high-quality asset base in the B.C. Montney fairway, characterized by a deep inventory of economic drilling locations spanning across the oil, liquids-rich natural gas and dry natural gas windows with connectivity to ample pipeline egress capacity, enabling delivery of significant growth and long-term free cash flow under a supportive natural gas pricing environment. Navigating the weak short-term natural gas price landscape, the Company established a plan to grow condensate production and expand its infrastructure capacity, while preserving the upside potential of its resource base until the expected strengthening of gas prices could materialize.
Recent news
https://ca.finance.yahoo.com/news/crew-energy-inc-announces-strategic-110000375.html
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