The combined company will be Canada’s largest condensate producer and third-largest producer of natural gas, operating under the name of ARC Resources Ltd and remaining headquartered in Calgary. Forward-looking information in this news release is identified by words such as "expect", "will", or similar expressions and includes suggestions of future outcomes, including statements about the expected closing date of the Business Combination and the characteristics of the ARC following the completion of the Business Combination. The merger will see ARC shareholders pay a relatively small premium and end up with 49% of the enlarged company, while Seven Generations investors will own the rest. 403-509-7280 On completion, Seven shareholders will own 51% of the combined company. Additional reporting by Derek Francis in Bengaluru; Editing by Denny Thomas, Stephen Coates and Lincoln Feast. 403-767-0752 CALGARY, Alberta (Reuters) - Canada’s ARC Resources Ltd on Wednesday agreed to buy Seven Generations Energy Ltd for C$2.7 billion ($2.2 billion) in an all-stock deal to create the country’s sixth-largest energy company, as oil producers strive to scale up and drive down costs. CALGARY, AB, Feb. 10, 2021 /CNW/ – (TSX: ARX) (TSX: VII) ARC Resources Ltd. (“ARC”) and Seven Generations Energy Ltd. (“Seven Generations”) today announce a strategic combination of the two premier Montney producers. Achieves Size and Scale. Oil and gas operations Source: Arc Resources Ltd. No surprises are expected today as shareholders in ARC Resources Ltd. and Seven Generations Energy Ltd. vote virtually on an all-shares transaction to form Canada's sixth-largest oil and gas producer. The Canada Pension Plan Investment Board (CPPIB), the country’s biggest pension fund, which controls 16.8% of Seven Generations shares, has agreed to vote in favour of the transaction, the companies said. Following the close of the transaction, ARC shareholders will own approximately 49 per cent and Seven Generations shareholders will own approximately 51 per cent of the total shares outstanding. “The Montney is the hot thing in Canada,” Oberstoetter said. Forward-looking Information and Statements. The voting directors of both ARC and Seven Generations have unanimously approved the Business Combination and ask that shareholders vote in favour of the resolutions. ARC Resources Ltd. is buying Seven Generations Energy Ltd. for $2.7-billion in stock, the latest deal to consolidate producers in the natural gas-rich … Canada’s ARC Resources Ltd. on Feb. 10 agreed to buy Seven Generations Energy Ltd. for CA$2.7 billion (US$2.2 billion) in an all-stock deal to create the country’s sixth-largest energy company, as oil producers strive to scale up and drive down costs. Material factors or assumptions on which the forward-looking information in this news release is based include: successful closing of the Business Combination, including obtaining necessary regulatory approvals, satisfying all other conditions to closing, within expected timelines, and the realization of the anticipated benefits of the Business Combination. Seven Generations Energy Ltd. The combined company will continue to focus on significant free funds flow generation through a responsible and disciplined approach to development while creating superior and enduring value for all shareholders. (TSX: ARX) (TSX: VII) ARC Resources Ltd. ("ARC") and Seven Generations Energy Ltd. ("Seven Generations") are pleased to announce that the shareholders of … Director, Investor Relations The offer of 1.108 Arc shares for each Seven Generations share values Seven Generations at about $2.86 billion at Tuesday's Arc closing price of $7.76. They nudged themselves into this next sphere,” Oberstoetter added. The Seven Generations virtual meeting will be held at 9:00 a.m. ( Calgary time) on Wednesday, March 31, 2021, and the ARC virtual meeting will be held at 11:00 a.m. ( … CALGARY, Alberta--(BUSINESS WIRE)--(ARX - TSX, VII - TSX) ARC Resources Ltd. ("ARC") and Seven Generations Energy Ltd. ("Seven Generations") are pleased to announce that the shareholders of each company have voted in favour of the proposed business combination (the "Business Combination") to create the premier Montney producer and leader in responsible energy development. Canadian oil and gas firm ARC Resources has agreed to merge rival Montney producer Seven Generations Energy in an all-stock deal worth around CAD8.1bn ($6.38bn). Although ARC and Seven Generations believe that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. ARC and Seven Generations agreed to combine their respective businesses and entered into a business combination agreement dated February 10, 2021. ARC Resources Ltd. ARC's leadership team brings together the strengths and talents of both ARC and Seven Generations. Currently, Seven Generations is engaged in developing the Kakwa River Project in the Montney Formation, Canada. The acquisition of Seven Generations Energy Ltd by ARC Resources Ltd has been approved by the shareholders of both Canadian companies, creating an energy firm with a dominant presence in the country’s premier Montney shale region. Vice President, Capital Markets and Stakeholder Engagement Investor Relations Analyst Including debt, the deal is valued at C$8.1 billion. At the ARC special shareholders meeting, the resolution authorizing the issuance of ARC common shares to Seven Generations shareholders pursuant to and in connection with the Business Combination, as set out in the joint management information circular dated March 1, 2021, was approved by 96.08 per cent of the votes cast. Developing forward … ARC will continue to promote diversity and inclusion within the organization by maintaining a minimum of 30 per cent female representation at the Board level and participating in initiatives like the 30% Club and the Bloomberg Gender-Equality Index. ARC/Seven Generations merger vote today would create 6th largest oil and gas producer. By: Dan Healing, The Canadian Press Posted: 8:12 AM CST … Additional information about assumptions, risk factors, and uncertainties on which the forward-looking information is based and that could cause ARC's or Seven Generations' actual results to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements are described in the joint management information circular of ARC and Seven Generations dated March 1, 2021 and the documents incorporated by reference therein, which are available on ARC's website at www.arcresources.com and Seven Generations' website at www.7Genergy.com, as applicable, and on ARC's and Seven Generations' respective SEDAR profiles at www.sedar.com and are incorporated by reference herein. The $2.7 billion deal is a case of two companies looking for a strategic fit, combining Seven Generations' crude oil and liquids-heavy output with ARC's gas-focused production MWilmot@arcresources.com, Brian Newmarch KBibby@arcresources.com, Martha Wilmot “This is a company seeking to become larger and more attractive to another investor class. BNewmarch@7Genergy.com, Ryan Galloway ARC Resources Ltd. is one of Canada’s largest energy companies and its common shares trade on the Toronto Stock Exchange under the symbol ARX. ARC rose 6.7% to C$7.92 as of 11:11 a.m. in Toronto, while Seven Generations gained 7.6% to C$8.63. At the Seven Generations special shareholders meeting, the resolution approving the Business Combination was approved by 99.41 per cent of the votes cast. Arc and Seven Generations say they expect to generate cost savings from synergies of about $110 million per year by 2022 while continuing to pay Arc's quarterly dividend of six cents per share. The combined company will become the biggest operator in western Canada’s premier Montney shale play, producing more than 340,000 barrels of oil equivalent per day (boepd). “The transaction will create a combined company with material size and scale that enhances ARC’s and Seven Generations’ existing commodity and geographic diversification,” the companies said in a statement. “One of the benefits of the deal is the two organizations think very similarly, and have two high quality asset bases, and bringing them together gives us scale and financial strength,” ARC CEO Terry Anderson told analysts on Wednesday. The deal is expected to be immediately accretive on a free funds flow and net asset value per share basis to all shareholders, the companies said. Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to ARC and/or Seven Generations and others that apply to the industry generally. Under the deal, shareholders of Seven Generations will receive 1.108 common shares of ARC for each share held. February 10, 2021 5:17 PM Business Wire. 403-503-8675 This news release contains certain forward-looking statements and forward-looking information (collectively referred to as "forward-looking information") within the meaning of applicable securities legislation about current expectations about the future, based on certain assumptions made by ARC and Seven Generations. It currently produces 1.5 million barrels of oil equivalent per day, including 45% of Western Canada’s gas supply, according Wood Mackenzie. The complementary assets of ARC and Seven Generations will possess material size and scale, while enhancing existing commodity and geographic diversification. CALGARY, Alberta – (ARX – TSX, VII – TSX) ARC Resources Ltd. (“ARC”) and Seven Generations Energy Ltd. (“Seven Generations”) today announce a strategic combination of the two premier Montney producers. Ryan.Galloway@7Genergy.com, ARC Resources and Seven Generations Announce Shareholder and Court Approval of Strategic Montney Combination. Senior Vice President and Chief Financial Officer The tie-up is a case of two companies looking for a strategic fit, combining Seven Generations’ crude oil and liquids-heavy output with ARC’s gas-focused production, said Mark Oberstoetter, director of upstream Canada research at consultancy Wood Mackenzie. The offer of 1.108 Arc shares for each Seven Generations share values Seven Generations at about $2.86 billion at Tuesday's Arc closing price of $7.76. Seven Generations Energy Ltd. Arc and Seven Generations say they expect to generate cost savings from synergies of about $110 million per year by 2022 while continuing to pay Arc's quarterly dividend of … No surprises are expected today as shareholders in ARC Resources Ltd. and Seven Generations Energy Ltd. vote virtually on an all-shares transaction … Canadian oil and gas companies struggled last year as the coronavirus pandemic battered demand but oil prices have rebounded in 2021 amid optimism about vaccine rollouts and concerns of a supply shortage. The companies say they have entered into a definitive agreement to combine in an all-share transaction valued at … BNN Bloomberg's Tara Weber discusses the details of the agreed upon merger between Seven Generations and Arc Resources. (Reuters) -The acquisition of Seven Generations Energy Ltd by ARC Resources Ltd has been approved by the shareholders of both Canadian companies, creating … ARC Resources Ltd. and Seven Generations Energy Ltd. announced Feb. 10 a strategic combination of the two premier Montney producers. Seven Generations Energy Ltd. is a low supply-cost energy producer dedicated to stakeholder service, responsible development, and generating strong returns from its liquids-rich Kakwa River Project in northwest Alberta. ARC Resources and Seven Generations Energy announce strategic Montney combination. ARC and Seven Generations undertake no obligation to update or revise any forward-looking information except as required by law. Seven Generations was founded in 2008, while Arc began in 1996. ARC Resources Ltd. The deal is expected to close early in the second quarter. ARC Resources has agreed to acquire rival Montney producer Seven Generations Energy for C$2.7bn ($2.2bn) to create Canada’s largest condensate producer and sixth-largest upstream energy company. Seven Generations’ common shares trade on the Toronto Stock Exchange under the symbol VII. Under the terms of the definitive agreement, Seven Generations shareholders will receive 1.108 common shares of ARC for each common share of Seven Generations held. Anderson will be president and chief executive of the combined company. Canada's ARC Resources Ltd on Wednesday agreed to buy Seven Generations Energy Ltd for C$2.7 billion ($2.2 billion) in an all-stock deal to create the … It is also expected to deliver annual cost savings of C$110 million by 2022. Canadian natural gas producers Seven Generations Energy Ltd. and ARC Resources Ltd. agreed to merge, the latest example of energy industry consolidation in … Shares in both Arc Resources and Seven Generations jump on news of oilpatch merger. 403-718-0709 Readers are cautioned not to place undue reliance on forward-looking information as ARC's actual results may differ materially from those expressed or implied. Kris Bibby All quotes delayed a minimum of 15 minutes. The merged company is to be Canada's largest producer of condensate, a light oil prized as a diluent to be mixed with oilsands bitumen so it will flow in a pipeline. Further, the Court of Queen’s Bench of Alberta issued a final order approving the Business Combination on March 31, 2021. Under the terms of the definitive agreement, Seven Generations shareholders will receive 1.108 common shares of ARC for each common share of Seven Generations held, which values Seven Generations at C$2.74 billion. At the ARC special shareholders meeting, the resolution authorizing the issuance of ARC common shares to Seven Generations shareholders pursuant … ARC Resources Ltd. and Seven Generations Energy Ltd. announced Wednesday a strategic combination of the two Montney producers. See here for a complete list of exchanges and delays. Under the terms of the definitive agreement, Seven Generations shareholders will receive 1.108 common shares of ARC for each common share of Seven Generations held. On March 31, 2021, ARC and Seven Generations each held special shareholders meetings virtually, via live webcasts, with each company’s shareholders voting on resolutions in connection with the proposed Business Combination. The Business Combination is expected to be completed on or about April 6, 2021 and is subject to the satisfaction of all closing conditions. The liquids-rich natural gas property spans over 500,000 net acres. Our Standards: The Thomson Reuters Trust Principles. Arc and Seven Generations say they expect to generate cost savings from synergies of about $110 million per year by 2022 while continuing to pay Arc’s quarterly dividend of … Arc chairman Hal Kvisle and CEO Terry Anderson are to continue in their roles while Seven Generations CEO Marty Proctor is to become vice-chair. Arc and Seven Generations said they expect to generate cost savings from … Arc and Seven Generations said they expect to generate cost savings from synergies of about $110 million per year by 2022 while continuing to pay ARC’s quarterly dividend of … Arc and Seven Generations say they expect to generate cost savings from synergies of about $110 million per year by 2022 while continuing to pay Arc's quarterly dividend of six cents per share. The deal underscores the rapidly shifting energy sector landscape, as oil companies face pressure to gain capacity to make them more attractive to lenders and investors. ARC Resources Ltd and Seven Generations Energy Ltd said on Wednesday they have entered a $8.1 billion all-stock merger agreement that will … ARC Resources buying Seven Generations to create Canada's sixth-largest energy company . ARC and Seven Generations undertake no obligation to update or revise any forward-looking information except as required by law. The vast Montney shale play straddles north-eastern British Columbia and north-western Alberta and is thought to have about half the recoverable resources of the entire oil sands region.