Chord Energy and Enerplus Complete Business Combination, Expect Over $200M in Synergies

By Bobby Samwell • Thursday, June 06 15:18 • Permanent Link

Chord Energy Corporation (NASDAQ: CHRD) and Enerplus Corporation (TSX: ERF) (NYSE: ERF) have successfully completed their business combination, creating a premier Williston Basin operator. The arrangement, approved by shareholders and the Court of King’s Bench of Alberta, is aimed at enhancing scale, low-cost inventory, financial strength, and shareholder returns.

The completion of this combination is expected to result in over $200 million of annual synergies, surpassing the original estimate of $150 million. Chord Energy's President and CEO, Danny Brown, expressed gratitude for the teams' hard work and dedication and emphasized the focus on maximizing shareholder value through capital discipline and sustainable free cash flow generation.

Following the arrangement's closure, the board of directors of Chord increased to 11 members, including 7 members from Chord and 4 members from Enerplus. The executive management team, led by Daniel Brown, President & CEO, will continue in their current capacities.

This combination is expected to improve Chord’s capital efficiency and lead to a positive rate of change related to enhanced returns and shareholder value creation.

The press release did not include specific financial metrics or performance changes since the previous period. The market has reacted to these announcements by moving the company's shares -1.0% to a price of $168.48. If you want to know more, read the company's complete 8-K report here.

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