Strathcona Resources agrees to acquire Greenfire Resources, with Waterous fund backing both

Greenfire shareholders may elect either 0.25 Strathcona shares per Greenfire share or $11.00 in cash per share. The transaction is to be carried out by a plan of arrangement under Alberta law and is expected to close after shareholder meetings.

Waterous Energy Fund holds 72% of Greenfire's outstanding shares and 57% of Strathcona's outstanding shares, and has signed a support agreement to elect the share option for its Greenfire stake. Strathcona expects to issue between about 43 million and 60 million shares and pay up to about $740 million in cash. Including Greenfire's roughly $550 million of net debt as of September 30, 2026, the total transaction value is about $2.7 to $2.9 billion.

Strathcona said the combined business would be the fourth-largest SAGD operator in Canada, with over 3.0 billion barrels of proved plus probable reserves and expected run-rate synergies of about $75 million a year. Jefferies and Torys advised the Strathcona special committee, while CIBC and Norton Rose Fulbright Canada advised the Greenfire special committee.