Whitecap Resources acquires XTO Energy Canada in all-cash deal
Whitecap Resources Inc. has agreed to acquire XTO Energy Canada, adding to its Montney inventory and entering the liquids rich Duvernay play at Kaybob, Whitecap said in a release June 28.
XTO Energy Canada is jointly owned by ExxonMobil Canadian affiliates Imperial and ExxonMobil Canada.
Total cash consideration is about $1.9 billion and the assumption of estimated positive working capital on closing for a net purchase price of $1.7 billion, Whitecap said.
The operating areas to be acquired include 567,000 net acres in the Montney shale, 72,000 net acres in the Duvernay shale, and additional acreage in other areas of Alberta. Net production from these operating areas is about 140 MMcfd of natural gas and about 9,000 b/d of crude oil, condensates, and natural gas liquids, ExxonMobil and Imperial said in separate releases.
The acreage contains over 20 years of tier one drilling locations, and an operated 165 MMcfd shallow cut gas processing facility servicing owned and third-party Duvernay volumes, Whitecap said.
The deal increases Whitecap's total acreage in the Montney by over 500% and adds 1,772 (1,693 net) Montney drilling locations. The deal also consolidates certain working interests at Kakwa, Alta., to 100% from an average of 66% on about 22,000 gross acres.
The transaction is expected to close before the end of third-quarter 2022, subject to customary closing conditions, including the receipt of necessary regulatory approvals.
