Tourmaline Oil Corp., Canada’s largest gas driller, has agreed to acquire Crew Energy Inc. for C$1.3 billion ($947 million) in an all-stock transaction. The deal values Crew’s shares at approximately C$6.69 each, a 72% premium over Friday’s closing price. Crew shareholders will receive 0.114802 of a Tourmaline share for each share held, with the deal also assuming C$240 million in net debt.
Following the announcement, Crew’s shares surged 74% to C$6.80, while Tourmaline’s stock rose 3.2%. The acquisition adds 29,000 barrels of oil equivalent per day, mostly gas, to Tourmaline’s production and boosts its anticipated 2025 free cash flow by over C$200 million.
This acquisition strengthens Tourmaline’s position in the Montney shale gas formation and aligns with its goal to increase production to 750,000 boe per day over the next five years. The deal is expected to close in early October.