Strathcona Resources agreed on 8 November 2026 to acquire Greenfire Resources, offering shareholders either C$11.00 a share in cash or 0.25 Strathcona shares, in a deal the Calgary-based company valued at about C$2.7bn to C$2.9bn including Greenfire's net debt.
Why Strathcona Resources Ltd. is buying Greenfire Resources Ltd.
Strathcona said the combined company would be Canada's fourth-largest steam-assisted gravity drainage operator and the only one producing across the Athabasca, Cold Lake and Lloydminster deposits, with year-to-date 2026 output of about 153,000 barrels a day and 2P reserves of about 3.0bn barrels. It expects about C$75m a year of run-rate synergies from lower borrowing, procurement and public-company costs, and said Greenfire's C$2.8bn of tax pools would push its cash-tax horizon from 2027 to 2031 at US$75 WTI, saving about C$400m over four years. The deal is expected to be about 6% accretive to 2P NAV per share and to support an investment-grade rating within a year of closing.
Deal terms and financing
The cash option is a 39% premium to Greenfire's 6 November close and the share option a 15% premium; there is no proration. Strathcona expects to issue 43m–60m shares, 17%–22% of the enlarged company, and pay up to about C$740m in cash. Waterous Energy Fund, which owns 72% of Greenfire and 57% of Strathcona, has agreed to vote in favour and elect shares, and would own 60%–64% of Strathcona afterwards. Both sides agreed mutual non-solicitation, matching rights and termination fees. Greenfire will become a Strathcona business unit, SCR Central Athabasca, led by Greenfire president Colin Germaniuk, and its shares will be delisted from the TSX and NYSE.
Regulatory approvals and timing
The arrangement needs two-thirds approval at each company's meeting, majority-of-the-minority approval under MI 61-101 excluding Waterous Energy Fund, Competition Act and TSX approvals and a final order of the Court of King's Bench of Alberta; a Schedule 13E-3 will be filed with the SEC. A joint circular is due to be mailed in late November 2026, with meetings expected in January 2027 and closing shortly after.
Market context
Waterous Energy Fund's Adam Waterous is executive chairman of both companies. Greenfire agreed in July 2026 to buy privately held Connacher Oil and Gas for about C$1.28bn.
