Tamarack Valley and Headwater Exploration Merge to Form Canadian Oil Leader

Tamarack Valley and Headwater Exploration are merging in an all-stock deal valued at C$10 billion ($7.25 billion), creating Canada's Clearwater oil leader. The combined company will be the largest publicly traded oil producer focused on Alberta's Clearwater Formation.

The merged entity will have a core land position across Marten Hills, Nipisi and Marten Hills West, with Tamarack shareholders owning 66.5% of the combined company and Headwater shareholders owning 33.5%. The deal is expected to close in the fourth quarter.

Tamarack plans to increase its quarterly dividend by 20% to C$0.06 per share following the merger. The company's five-year plan now includes Clearwater growth of 10%-12%, up from 8%-10% prior to the transaction.