Strathcona Resources agreed to acquire Greenfire Resources in a Canadian oil deal valued at approximately C$2.7 billion to C$2.9 billion, including about C$550 million of net debt.
The companies’ announcement pairs Strathcona, a heavy-oil producer focused on thermal oil and enhanced recovery, with Greenfire, a Calgary-based oil-sands producer operating in Alberta’s Athabasca region. The agreement has not closed.
Greenfire shareholders may choose either 0.25 Strathcona share or C$11 in cash for each Greenfire share, without proration. The share option was worth C$9.09 using November 6 closing prices, a 15% premium to Greenfire’s close; the cash option represented a 39% premium. All dollar figures are Canadian.
Waterous Energy Fund and its affiliates, which hold 72% of Greenfire and 57% of Strathcona, signed a support agreement and will elect shares. Approval requires at least two-thirds of votes cast at each company’s meeting, plus separate minority votes excluding Waterous and other ineligible holders. Court, Toronto Stock Exchange and Competition Act approvals are also required. Shareholder meetings are expected in January 2027, with closing expected shortly afterward if conditions are met.
Strathcona forecast approximately C$75 million in annual run-rate savings within the first year of combined operations, citing borrowing costs, procurement and duplicate public-company expenses. That is management’s target, not a realized result. Greenfire’s shares would be delisted from the Toronto and New York stock exchanges after completion.
JBizNews Desk | Calgary, Alberta
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