Vermilion Energy makes deal worth $1.4B
International oil and gas producer Vermilion Energy Inc. is taking advantage of low valuations for “unloved” Canadian energy assets in a $1.4-billion deal to buy a Saskatchewan-focused rival, its CEO said Monday.
The company will issue $1.23 billion worth of Vermilion shares and assume about $175 million in debt to buy fellow Calgary-based producer Spartan Energy Corp. in a transaction expected to close in June.
CEO Tony Marino said Vermilion has been watching the Saskatchewan energy sector for about five years and first entered the field in 2014 because it of its light oil-producing wells and good pipeline access to markets in the United States.
“The Canadian sector continued to be more and more unloved over time, especially in the past year in the capital markets,” Marino said.