Strathcona Resources to Acquire Greenfire Resources in Deal Valued at Up to C$2.9 Billion

Strathcona Resources Ltd. announced Sunday it has agreed to acquire Calgary-based Greenfire Resources Ltd. in a transaction valued at approximately C$2.7 billion to C$2.9 billion, including C$550 million in net debt. Under the terms of the deal, Greenfire shareholders may elect to receive either 0.25 Strathcona shares or C$11 in cash for each Greenfire share they hold. Both companies are Calgary-based oil sands operators, and the acquisition adds scale for Strathcona in Canada's thermal oil sands sector, where Greenfire operates using steam-assisted gravity drainage technology. Greenfire trades on both the NYSE and TSX under the ticker GFR, while Strathcona trades on the TSX under SCR.

Greenfire shares surged approximately 38% in premarket trading on Monday following the announcement, with the stock advancing to around $7.60 in early trading. Investor rights law firm Halper Sadeh LLC disclosed the same day that it is investigating whether the terms of the deal are fair to Greenfire shareholders, a standard step that often follows merger announcements of this type.