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“When you add that up with some of the significant operating expertise, financial strength, and ESG (Environment, Social and Corporate Governance) leadership, that we will form a pretty strong company that will play a critical role in our evolving industry.” The merging of the two is expected to allow for total production of 340,000 barrels of oil equivalent of natural gas per day this year, including 138,000 barrels per day of liquids and approximately 1.2 billion cubic feet per day of natural gas. Those production levels would make them Canada’s largest condensate producer, third-largest natural gas producer, and sixth-largest upstream energy company. Bolder says the move will also help bring some stability to both organizations, amid a constantly fluctuating energy sector. “Coming together, we’ve got a very, very diverse portfolio mix,” said Bolder, pointing to Seven Generations’ liquids-rich assets. “Then you complement that with some of the assets that ARC brings to the table, certainly on the natural gas side, but also liquids-rich assets as well. That gives us some optionality when we are making our capital allocations, where we can direct our dollars, based on what the markets are doing. Once the deal is finalized, which Bolder projects could happen in the second quarter of this year, the new company’s corporate headquarters would be set up in Calgary, with field operations headquarters in Grande Prairie, Dawson Creek and Drayton Valley. Exactly what things might look like at the Grande Prairie office (which is still under construction) when that time comes remains to be seen, as Bolder calls the merger in “early days” “Certainly our operations are up there, and that’s where we’ve got our great asset, so in terms of what that does and what that looks like on the go forward, our asset’s not going to change. “But we’re not quite sure just yet what it looks like going forward.” Seven Generations shareholders will receive 1.108 common shares of ARC for each common share of Seven Generations held, as part of the deal. Seven Generations shareholders will then own approximately 51 per cent of all Arc Resources stock, with Arc shareholders holding the other 49 per cent. by Shaun Penner |
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