Tourmaline Buys Two Rivals in Latest Canadian Energy M&A Deals

Tourmaline Oil Corp. is buying two rivals in the Canadian oil and gas industry’s latest move to weather its worst downturn in a generation.

Just a week after Cenovus Energy Inc.’s much larger takeover of Husky Energy Inc., Calgary-based Tourmaline said it has agreed to acquire closely-held Jupiter Resources Ltd. for about C$415 million ($315 million) and Modern Resources Inc. for roughly C$100 million, excluding debt.

Canada’s energy industry, which was already struggling with depressed local prices due to a shortage of export pipelines, this year has also had to cope with the devastating impact of the Covid-19 pandemic on energy demand.

Last week, Cenovus agreed to buy Husky in an C$3.8 billion all-stock deal to create the country’s third-largest oil and gas producer.

Following its two acquisitions, Tourmaline has also agreed to sell some land rights from the two rivals to Topaz Energy Corp., in a deal valued at about C$130 million.

©2020 Bloomberg L.P.

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