Headwater Exploration Tied Up in $10 Billion All-Stock Deal with Rival

Headwater Exploration Inc. (TSX:HWX) and Tamarack Valley Energy (TSX:TVE), both Calgary-based light oil producers, have agreed to a $10 billion all-stock combination.

The deal would create an enlarged TSX-listed producer with run-rate production exceeding 80,000 barrels of oil equivalent per day and proved-plus-probable reserves of over 300 million barrels across all formations.

As part of the agreement, Tamarack will issue roughly 237.8 million common shares to acquire Headwater, leaving existing Tamarack shareholders with about 66.5% of the combined entity and Headwater shareholders with the remaining 33.5%.

The companies expect the deal to close in mid-fourth-quarter 2026, subject to shareholder and regulatory approvals.