Tamarack Valley Energy and Headwater Exploration Announce C$10 Billion Merger

Tamarack Valley Energy Ltd. and Headwater Exploration Inc., two significant operators in Alberta's Clearwater formation, have agreed to combine in an all-stock transaction valued at approximately C$10 billion ($7.2 billion). The merger will create a larger Canadian oil producer with more than 80,000 barrels of oil-equivalent a day of run-rate production.

The combined company expects to generate over C$50 million in annual run-rate synergies and increase its free funds flow per share. Additionally, Tamarack plans to raise its quarterly dividend by 20% after the transaction closes, to C$0.06 a share.

The enlarged producer aims to pursue annual Clearwater production growth of 10% to 12% under its five-year plan, compared to Tamarack's previous target of 8% to 10%. The companies expect their combined 2026 capital investment programs to total about C$700 million.