Strathcona Resources to Acquire Pipestone Energy Corp in Bid to go Public

Calgary-based Strathcona Resources Ltd. is set to become the fifth largest oil producer in Canada with the planned acquisition of publicly traded oil and gas exploration company Pipestone Energy Corp (TSX: PIPE).

In an all-share deal, the companies will combine to value at $8.6 billion, which Strathcoma claims will position it to have a larger, low-decline rate of production. The merger is also supposed to benefit Pipestone’s shareholders, as it will grant them roughly 9.05% of the fully-diluted pro forma equity in the new entity.

“We’ve been asked by a lot of folks, ‘Why go public?’” said Strathcona executive chairman Adam Waterous during a conference call cited by the Canadian Press. “When you’re private, it’s a much simpler life. There’s less reporting requirements … but I would also say that our view of actually being public is that the sector, in general, is undervalued.”

The deal has already been greenlit by Pipestone’s board, but shareholders’ approval is the final step needed before the expected closure of the transaction early in the fourth quarter of the year.

Pipestone Energy Corp. last traded at $2.48 on the TSX.

Information for this briefing was found via Strathcoma and the Canadian Press. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Antimony Resources Drills 5.27% Sb Over 4.95 Metres In Latest Results

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Related News

MEG Energy To Be Acquired By Cenovus At $7.9 Billion Valuation

MEG Energy (TSX: MEG) has officially become the focus of a bidding war. The company...

Friday, August 22, 2025, 08:59:41 AM

Strathcona Resources To Reject Cenovus Offer On MEG Energy, Intends To Increase Stake Further

Strathcona Resources (TSX: SCR) isn’t about to let a definitive agreement between MEG Energy (TSX:...

Friday, August 29, 2025, 09:05:19 AM

Pipestone Energy Faces Resistance From Shareholders In Strathcona Resources Acquisition Deal

GMT Capital, the second-largest shareholder of Pipestone Energy Corp (TSX: PIPE), has already announced its...

Thursday, September 21, 2023, 11:20:52 AM