May 19, 2020

Vermilion Energy acquires Spartan Energy for $1.4bn

Mergers & Acquisitions
Oil & Gas
Vermilion Energy
Spartan Energy
zaymalz malz
1 min
Vermilion Energy acquires Spartan Energy for $1.4bn

Calgary-based energy company Vermilion Energy has acquired fellow regional industry operator Spartan Energy in a deal valued at $1.4bn.

The acquisition is expected to raise Vermilion’s production capacity by 23,000 barrels of oil per day (bpd), with Spartan Energy’s operations spanning 480,000 acres of light oil producing assets across Saskatchewan, Alberta and Manitoba.

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The deal will see Spartan Energy shareholders offered $1.23bn worth of Vermilion Energy shares, equating to 0.1476 Vermilion shares for each Spartan Energy share, whilst Vermilion will also assume $175mn in Spartan Energy Debt.

The price represents a 5% premium compared to Spartan’s unaffected share price.

The move bolster’s Vermilion’s regional presence, having first entered Saskatchewan in 2014 with its previous acquisition of Elkhorn Resources in 2014.

Since then, the company states that it added 30 sections of land to its core Saskatchewan portfolio through the end of 2017, with this acquisition set to further raise its footing.

This marks the largest acquisition within Canada’s oil and gas industry this year to date.

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