Whitecap Resources and Veren to merge in massive $15-billion deal
If approved, the new company, under Whitecap's name, would have combined production of around 370,000 barrels of oil equivalent per day, the companies said in a release Monday.
The merger stands to create the largest Canadian light oil producer and the seventh-largest producer overall in the Western Canadian Sedimentary Basin.
The new company would also be the largest landholder in the Alberta Montney and the second largest across unconventional Montney and Duvernay fairways, with a combined 1.5 million acres in Alberta, the release said. The combined company would also be the second-largest producer in Saskatchewan.
The new company will be led by Whitecap's current management team, with four Veren directors — including chief executive Craig Bryska — joining Whitecap's board.
The all-share transaction is valued at $15 billion, including net debt. Under the terms of the deal, Veren (formerly known as Crescent Point Energy Corp.) shareholders will receive 1.05 Whitecap shares for each Veren share. Post-merger, Whitecap shareholders would own roughly 48 per cent of the combined company; Veren shareholders will own 52 per cent.
The deal will be voted on by both companies' shareholders in early May. The merger will also require court and regulatory approvals.
Luke Davis, an analyst at Raymond James Financial Inc., suggested the merger has been a logical move for at least the last decade.
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'(T)he combined company will be positioned exceptionally well with Whitecap's best-in-class management team poised to improve operational performance and capture synergies across the value chain,' he said in a note Monday.
'We also think this positions the company among larger-cap peers, which seems to be the clearest path to sustainable multiple expansion. That said, we would not be surprised by some near-term weakness as the deal is digested with the premium paid a key driver.'
• Email: mpotkins@postmedia.com
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Los Angeles Times
2 hours ago
- Los Angeles Times
Air Canada strike leads to canceled flights around L.A.
A strike by thousands of Air Canada flight attendants caused travel chaos and hundreds of flight cancellations across the country on Saturday, including 24 at Los Angeles International Airport and two at John Wayne Airport. The Canadian government quickly stepped in Saturday morning, shutting down the strike by imposing binding arbitration and forcing the flight attendants back to work. 'It has now become clear that this dispute won't be resolved at the table,' Canada's labor minister Patty Hajdu said in a statement, adding that the government must act to preserve stability and supply chains. The strike started about 10 p.m. Friday and was brought by the Canada Union of Public Employees, which represents roughly 10,000 flight attendants at Air Canada and Air Canada Rouge. The dispute was tied to contract negotiations over unpaid work and low wages, according to a statement from the union. Air Canada operates around 700 flights per day and started winding down operations two days ago in anticipation of the planned strike, at the time estimating it would affect about 130,000 customers. The airline said it would notify customers on canceled flights of their options, saying it deeply regrets the effect of the labor dispute. An independent industrial relations board will review the dispute over the next two days. According to Hajdu, it could take Air Canada five to 10 days to ramp back up to regular services. Canada is no stranger to air travel strikes. Last year, pilots for WestJet Airlines, the country's second-largest airline behind Air Canada, threatened to strike over a new contract. The same year, a plane mechanics union went on strike over wages, leading to hundreds of WestJet flight cancellations. Air travel strikes have popped up in the U.S. as well. Around 500 Spirit Airlines pilots went on strike for five days in 2010, leading to hundreds of flight cancellations. In 2023, LAX workers voted to authorize a strike over stalls in contract negotiations.
UPI
3 hours ago
- UPI
Air Canada ordered to resume operations during binding arbitration
An Air Canada plane is pictured at a gate at Montreal-Trudeau International Airport, in Montreal. On Saturday morning, all flights were cancelled after flight attendants went on strike. Photo Graham Hughes/EPA Aug. 16 (UPI) -- Hours after Air Canada flight attendants went on strike and the airline indefinitely paused all flights, the Canadian government intervenued Saturday and ordered operations to resume. Jobs Minister Patty Haju ordered the company's management and the union back to participate in binding arbitration to hash out their differences on wages and compensation. It wasn't known when flights will resume after opereations were paused early Saturday. "After eight months of negotiations by the parties, and after meeting with both parties last night and urging them to work hard to reach a deal, it is disappointing to have to conclude today that Air Canada and CUPE flight attendants are at an impasse and remain unable to resolve their dispute," she said in a statement released Saturday aftetnoon Eastern time. "The government firmly believes that the best deals are reached by the parties at the bargaining table. It has now become clear that this dispute won't be resolved at the table. Canadians are increasingly finding themselves in very difficult situations and the strike is rapidly impacting the Canadian economy." She invoked Section 107 of the Canadian Labor Code, which directs the Canadian Relations Board to arbitrate the dispute. "I am exercising this authority because it is critical to maintaining and securing industrial peace, protecting Canadians and promoting conditions to resolve the dispute," she said. "Despite the parties' resolution of several key differences, the CIRB is best positioned to help them find a solution on the outstanding items." Also, she extended the terms of the existing agreement until a new one is determined by an arbiter. "This decision will help make sure that hundreds of thousands of Canadians and visitors to our country are not impacted because of cancelled flights," she said. "Further, the shipments of critical goods such as pharmaceuticals and organ tissue, over 40% of which are moved by Air Canada, should continue to reach their destinations." The Air Canada union asked her to direct the parties to enter into binding arbitration. More than 130,000 travelers worldwide fly on the airline daily. Canada's largest airline has more than 1,000 flights, including 170 international ones, and from 50 Canadian airports. Between more than 50 U.S. airports and Canada, there are 430 daily flights. Locked out at 1:30 a.m. EDT were 10,000 flight attendants at Air Canada and Air Canada Rouge represented by the Canadian Union of Public Employees. Air Canada Express, with regional 300 flights and operated by Jazz Aviation and PAl Airlines, is not affected. The flight attendants went on strike at 12:58 a.m. EDT. Picket lines had been set up at airports throughout Canada, the CBC reported. The last negotiations were on Friday night and no new talks were scheduled. On Wednesday, the airline served the union a statutory 72-hour lockout notice in response to the union's 72-hour strike notice. Air Canada was canceling flights ahead of the work stoppage. "The carriers have since been gradually reducing their schedules of about 700 daily flights to manage the labour disruption created by CUPE's strike notice," the airline said. "Some 130,000 customers will be impacted each day that the suspension continues. At this time, Air Canada remains engaged and committed to negotiate a renewal to its collective agreement with CUPE." The airline said it "deeply regrets the labor disruption is having on customers." Wesley Lesosky, president of the Canadian Union of Public Employees' Air Canada component, told the CBC it is up to the airline when they would be back on flights. The airline hadn't responded to the media site. Air Canada Chief Operating Officer Mark Nasr earlier said after an agreement, it could take up to a week to fully restart operations. The carrier advised people not to go to the airport if they are booked on the airline. "Air Canada will notify customers with imminent travel of additional canceled flights and their options," the airline said. "For those customers due to travel soon whose flights are not yet cancelled, Air Canada has put in place a goodwill policy to allow them to rebook their travel or obtain a credit for future travel." Compensation differences Flight attendants want to be compensated for work before the flights take off and after they land. Typically with most airlines, they get paid only for the hours they are in the air. The airline, in its latest offer, proposes a 38% increase in total compensation that "would have made our flight attendants the best compensated in Canada." The union said a proposed 8% raise in the first year is offset by inflation. Hajdu told The Canadian Press on Friday that it is "critical" for the two sides to return to the negotiating table. "It's very important that we stay focused on the two parties," Hajdu said. "They have the primary responsibility to solve this. This is a corporation and a union who have all the tools they need, as well as tools from the federal mediation service, to get this deal done." On Friday, the minister said she wasn't ready to intervene in the dispute, and saw a path forward to a deal because most issues have been resolved. The union accused her of speaking "on behalf" of the company. "Every party has expressed support for our effort to end unpaid work, except for the governing Liberal Party," Lesosky said during a news conference Thursday. Hajdu posted Friday on Facebook that she met with both sides. "It is unacceptable that such little progress has been made. Canadians are counting on both parties to put forward their best efforts." Travel options The carrier advised people not to go to the airport if they are booked on the airline. "Air Canada will notify customers with imminent travel of additional cancelled flights and their options. For those customers due to travel soon whose flights are not yet cancelled, Air Canada has put in place a goodwill policy to allow them to rebook their travel or obtain a credit for future travel," the airline posted. Air Canada is partnered with Star Alliance, which includes more than 20 airlines, including Lufthansa and United Airlines. Code-sharing flights might be affected. The New York Times listed ideas for travelers. Travelers can change flight dates and receive a one-time $50 credit per passenger or opt for an airline credit equal to the value of the ticket for one year. Travelers are eligible for a full refund requested through the app or website. The airline said it will attempt to rebook travelers on other airlines. Canada's second-biggest airline is WestJet Airlines, though it has many fewer international destinations. Because of peak summer travel, options may be limited. Keelin Pringnitz and her family were returning from a European vacation to Ottawa, but were left stranded at Heathrow Airport in London. "It was an end of my maternity leave kind of trip," Pringnitz told CBC. "We went to the Faroe Islands and Norway, travelling through Air Canada to London." She said they could fly to the United States, but no assistance once they land there. "It didn't go over well with the line," she said. "Nobody really seemed interested. Everybody seemed a little bit amused almost at the suggestion, or exasperated, because it is a bit ridiculous to offer to take stranded passengers to a different country to strand them there." For those with travel insurance, some plans include trip cancellations, including a strike. The U.S. Department of Transportation, which has jurisdiction over Air Canada flights that depart from the U.S., has a similar policy like the Canadian government. Refunds must be given within 30 days and rebooked if possible. There is no mandatory compensation for delays. "For U.S. travellers, the key now is to think strategically," Anton Radchenko, AirAdvisor's founder, said in a statement to USA Today. "Don't just look for the fastest alternative route; look for the most stable one. This may mean flying via smaller, less congested hubs like Detroit or Minneapolis, where rerouting is easier, or securing refundable one-stop connections through partner airlines before seats vanish. "Keep all receipts, track your communications with the airline, and, if possible, pay with a credit card that includes trip interruption coverage. Above all, treat this strike as a high-impact event that demands proactive planning, not reactive scrambling."
San Francisco Chronicle
5 hours ago
- San Francisco Chronicle
Air Canada flight attendant strike: Here's how many SFO flights are affected
An Air Canada flight attendant strike morning appeared to be behind the airline's 18 cancelled flights at San Francisco International Airport Saturday morning, according to the flight-tracking website FlightAware. Around 10,000 Air Canada flight attendants went on strike Saturday morning after union officials declined the airline's request to have the Canadian government to arbitrate ongoing contract disputes, the Associated Press reported. The strike forced Air Canada to suspend operations Saturday, the airline said. The airline and the union representing the flight attendants have negotiated for eight months over but remain at an impasse, particularly over pay issues and the issue of unpaid work flight attendants are required to perform while planes aren't flying. It was not immediately clear how long the strike would last, but the airline issued a 72-hour lockout once the union informed Air Canada officials of their intent to strike, the airline said. Most cancelled flights were expected to affect travellers coming or going from Canada. Air Canada reported Saturday morning that a total of 623 flights were cancelled as a result of the strike, impacting about 100,000 travelers in total.
