Enerplus shares surged in post-market trading following the announcement of its merger with Chord Energy, forming a powerhouse $11 billion oil and gas production company.
Stock Market Response
Enerplus's stock soared by 9.6% to $18 in after-hours trading, reflecting a 7% increase since the beginning of the year. On the other hand, Chord's shares also saw a healthy uptick of about 4.8% in late trading.
Merger Details
Under the terms of the merger, Enerplus shareholders will receive roughly one-tenth of a Chord share and $1.84 in cash for each Enerplus share held. This strategic exchange values Enerplus at $18.42 per share, solidifying its position in the market.
Shareholder Structure
Following the merger, Enerplus shareholders will retain approximately one-third ownership in the combined entity, while Chord shareholders will possess the rest.
Enterprise Value
The estimated enterprise value of around $11 billion takes into account the closing prices of both companies' shares as of Feb. 20, inclusive of Enerplus's net debt.
Merger Timeline
Anticipated to close by mid-2024, the merger marks a significant milestone in the evolution of both Enerplus and Chord Energy.
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