Crescent Point Energy has announced its agreement to acquire Hammerhead Energy for 21 Canadian dollars per share, totaling approximately $15.33 in cash and stock. This deal values Hammerhead at an enterprise value of C$2.55 billion, including debt, representing a significant 17% premium over the five-day volume weighted average trading price of Hammerhead shares as of November 3.
Cash and Stock Exchange
Under the agreement, each Hammerhead share will be exchanged for C$15.50 in cash and C$5.50 worth of shares of Crescent Point. The share count of Crescent Point will be determined based on the offering price of a concurrent offering recently declared by the company.
Stronger Combined Entity
Upon completion of the acquisition, the consolidated entity is projected to become the seventh-largest exploration and production company in Canada. With an estimated production exceeding 200,000 barrels of oil equivalent per day in 2024, it will be an influential force in the industry.
Before the acquisition can be finalized, it must receive approval from Hammerhead shareholders at a special meeting scheduled for late December. Assuming all goes according to plan, the acquisition is expected to conclude around the same time.