Tourmaline Oil Corp. announced on Monday a $1.3 billion ($947 million USD) agreement to purchase all shares of Crew Energy Inc.
By Max Bowder ● Fort St. John, News, Peace Region, Provincial ● August 12, 2024 ● 2 minutes of reading
MONTNEY, B.C. — Tourmaline Oil Corp. announced on Monday a $1.3 billion ($947 million USD) agreement to purchase all shares of Crew Energy Inc.
The acquisition provides a high-quality addition to Tourmaline’s South Montney asset base, adding over $200 million to its anticipated 2025 free cash flow.
Tourmaline is Canada’s largest natural gas producer, and the BC/AB Montney and the Alberta Deep Basin are regarded as the two premier natural gas plays in the country.
According to their website, NEBC Montney produces up to 260,000 barrels of oil equivalent per day (BOEPD) as of March 2024.
The purchase also includes an assumption over Crew Energy’s net debt of $240 million.
According to Tourmaline President & CEO Mike Rose, “Dale and his team at Crew have done a tremendous job over the past 21 years assembling one of the premier, concentrated Montney asset bases in NEBC, with significant upside.”
“Tourmaline’s scale, execution capability and ability to generate strong FCF in all parts of the commodity cycle will allow Crew shareholders to realize the material embedded upside on an accelerated timeline.”
The acquisition continues the company’s NEBC consolidation strategy, which will see it become a 750,000 BOEPD producer over the next five years.
According to the announcement, Tourmaline believes now is the best time to consolidate assets, as it expects “imminent major growth in the North American LNG business and acceleration of natural gas-powered electrical generation requirements across the continent.”
The acquisition is expected to close in October 2024 after it is subject to customary closing conditions.
Tourmaline agreed to a $1.45 billion purchase of Bonavista Energy Corp. in October 2023.
