Canada's Tamarack Valley and Headwater to merge in C$10 billion deal By Investing.com

Investing.com -- Tamarack Valley Energy and Headwater Exploration announced Tuesday they will merge in an all-stock transaction valued at C$10 billion ($7.25 billion). The merger will create the largest publicly traded oil producer focused on Alberta's Clearwater Formation. The combined company will hold core land positions across Marten Hills, Nipisi and Marten Hills West. Under the terms of the agreement, Headwater shareholders will receive one Tamarack share for each share held. Tamarack (TSX:TVE) will issue approximately 237.8 million shares. Tamarack shareholders will own 66.5% of the combined entity, while Headwater (TSX:HWX) shareholders will hold 33.5%. Tamarack plans to increase its quarterly dividend by 20% to C$0.06 per share in connection with the transaction, President Steve Buytels said. The company's five-year plan now includes Clearwater growth of 10%-12%, up from 8%-10% before the transaction, Buytels added. Tamarack Valley's shares rose over 4% Tuesday, while Headwater gained nearly 2%. Buytels will become CEO and join the board of the combined company on January 1, 2027. Founding CEO Brian Schmidt will transition to executive chairman. The transaction is expected to close in the fourth quarter. Following completion, Tamarack plans to manage expected growth in its Clearwater production through existing and planned pipelines to Edmonton, Alberta. These expanded options provide Tamarack with an opportunity to mitigate the risk of local capacity constraints and obtain greater exposure to diversified oil markets, the company said. The two companies plan to transfer certain non-core exploration assets into Tributary Exploration Inc, a new publicly listed company. Headwater's current management team will run the new firm, with Headwater CEO Jason Jaskela serving as chief executive.