Gas Producers Seven Generations, ARC Rise on Merger Deal
- The $2.3 billion deal combines two Montney shale operators
- New company to produce 130,000 barrels of oil equivalent a day
Photographer: Norm Betts/Bloomberg
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Canadian natural gas producers Seven Generations Energy Ltd. and ARC Resources Ltd. agreed to merge, the latest example of energy industry consolidation in North American as companies seek scale following a years-long downturn.
Seven Generations and ARC, which are both focused on western Canada’s Montney shale formation, said Wednesday evening they had agreed on an all-share transaction. The combination has an equity value of C$2.9 billion ($2.3 billion), according to data compiled Bloomberg.