Home Energy assets Enerplus to sell certain Canadian assets in Alberta to Journey Energy for US$109 million

Enerplus to sell certain Canadian assets in Alberta to Journey Energy for US$109 million

0

(RTTNews) – Enerplus Corp. (ERF, ERF.TO) said it has agreed to sell certain Canadian assets located in Alberta to Journey Energy Inc. for total consideration of C$140 million or US$109 million, before closing adjustments.

Under the terms of the agreement, the total consideration includes cash of C$81 million, 3.0 million common shares of Journey valued at C$14 million based on its volume-weighted average trading price five trading days, and a monthly amortization of C$45 million, interest-bearing loan that Enerplus will provide to Journey which is secured by certain of the assets and which is to be repaid in full by October 31, 2024.

Assets include the company’s Ante Creek and Medicine Hat operations as well as its extensive interests in the West Five and West Six regions of Alberta.

Enerplus noted that it continues to favor opportunities to divest its remaining Canadian assets in Alberta and Saskatchewan.

Enerplus said it plans to use the proceeds of the transaction to reduce debt and improve its return of capital to shareholders.

The transaction is expected to close at the end of the third quarter of 2022, subject to customary closing conditions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.