Strathcona to become fifth-largest Canadian oil producer after Pipestone takeover

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Strathcona will become a public company with an expected initial market value of about $8.6 billion once the deal closes, the company said. Pipestone will own about nine per cent of the new firm, which will continue to be named Strathcona Resources.“Over the last six-and-a-half years, we have built Strathcona from 5,000 barrel-of-oil equivalent per day to 185,000 boe/d,” Adam Waterous, the company’s executive chairman, said in a statement.

In a conference call on Aug. 1, Waterous said that Strathcona has decided to go public since it believes that the sector in general is undervalued and provides “multiple attractive acquisition” opportunities. He added that while many of Strathcona’s targets were happy to take cash, there are others interested in partnering with the company by acquiring shares in a public company.

Pipestone’s interim chief executive Dustin Hoffman echoed a similar sentiment and said that the transaction will provide its shareholders exposure to one of the largest diversified upstream producers in North America.There was an error, please provide a valid email address.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter.

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