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BRIEF-ARC Resources, Seven Generations Energy Announce Merger

Published 2021-02-10, 07:38 p/m
© Reuters.

Feb 10 (Reuters) - Seven Generations Energy Ltd VII.TO :

* ARC RESOURCES AND SEVEN GENERATIONS ENERGY ANNOUNCE STRATEGIC MONTNEY COMBINATION

* SEVEN GENERATIONS ENERGY - COMBINATION IS EXPECTED TO BE IMMEDIATELY ACCRETIVE ON FREE FUNDS FLOW, NET ASSET VALUE PER SHARE BASIS TO ALL SHAREHOLDERS

* COS ENTERED INTO DEFINITIVE PACT TO COMBINE IN ALL-SHARE DEAL VALUED AT ABOUT $8.1 BILLION

* SEVEN GENERATIONS- SEVEN GENERATIONS SHAREHOLDERS WILL RECEIVE 1.108 COMMON SHARES OF ARC FOR EACH COMMON SHARE OF SEVEN GENERATIONS HELD

* COMBINED COMPANY WILL BE HEADQUARTERED IN CALGARY, ALBERTA

* TRANSACTION VALUE INCLUSIVE OF NET DEBT

* COMBINED COMPANY IS EXPECTED TO DELIVER AVERAGE DAILY PRODUCTION OF OVER 340,000 BOE PER DAY

* COMBINED CO WILL OPERATE AS ARC RESOURCES LTD. AND REMAIN HEADQUARTERED IN CALGARY, ALBERTA

* SEVEN GENERATIONS ENERGY - BOARD OF DIRECTORS WILL CONSIST OF 11 MEMBERS, MADE UP OF SIX DIRECTORS FROM ARC AND FIVE DIRECTORS FROM SEVEN GENERATIONS

* SEVEN GENERATIONS - AS PART OF ITS RETURNS-FOCUSED VALUE PROPOSITION, COMBINED COMPANY WILL PAY A QUARTERLY DIVIDEND OF $0.06 PER SHARE

* PRELIMINARY PRO FORMA 2021 OUTLOOK ESTIMATES CAPITAL INVESTMENTS OF ABOUT $1.0 BILLION TO $1.1 BILLION

* COMBINED COMPANY IS EXPECTED TO HAVE AN INVESTMENT-GRADE CREDIT RATING

* MANAGEMENT WILL BE LED BY ARC'S TERRY ANDERSON AS PRESIDENT AND CEO

* TRANSACTION IS EXPECTED TO CLOSE IN Q2 OF 2021

* COMBINED COMPANY PLANS TO MANAGE A LOW-COST CAPITAL STRUCTURE WITH AMPLE LIQUIDITY

* SEVEN GENERATIONS - ARC'S HAL KVISLE WILL REMAIN AS INDEPENDENT CHAIR AND SEVEN GENERATIONS' MARTY PROCTOR WILL JOIN BOARD TO SERVE AS VICE-CHAIR

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* NET DEBT SEEN TO BE REDUCED TO ABOUT 1.3 TIMES FUNDS FROM OPERATIONS BY YEAR-END 2021 FROM COMBINATION

* SEVEN GENERATIONS-MANAGEMENT WILL LED BY ARC'S KRIS BIBBY AS SENIOR VICE PRESIDENT &CFO, SEVEN GENERATIONS' DAVID HOLT AS SENIOR VICE PRESIDENT, COO

* SEVEN GENERATIONS - ALL FIGURES IN C$

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