Whitecap Resources and Veren have completed a CA$15 billion (US$10.43 billion) all-share merger, officially announced on May 12, 2025. The merger creates a new heavyweight in Canadian energy, ranking as the seventh-largest oil and gas producer and the fifth-largest natural gas producer in the country by output.
The merged company will operate under the Whitecap Resources name and will be headquartered in Calgary, Alberta. The existing Whitecap management team will lead the organization, with Grant Fagerheim continuing as President and CEO and Ken Stickland serving as Board Chair. The new board of directors will include seven members from Whitecap and four new members from Veren.
Strategic Asset Base and Production Outlook
The combined company now holds a high-quality, light oil and condensate-weighted portfolio with 1.5 million net acres across the Alberta Montney and Kaybob Duvernay formations. The asset base offers more than 4,800 identified future drilling locations, positioning Whitecap for strong long-term growth.
Whitecap has revised its 2025 production guidance upward to 295,000–300,000 boe/d, with approximately 63% liquids. Planned capital expenditures for the year are set at $2 billion, underpinned by an active development program across both unconventional and conventional assets.
Development Plans
The company plans to drill 67 (58.1 net) Montney and Duvernay wells, with 66 (63.5 net) expected to come online in the second half of 2025. These unconventional wells represent a critical pillar of Whitecap’s production growth strategy.
In addition, 91 (74.8 net) wells are planned across conventional assets in Saskatchewan, alongside 10 (5.2 net) wells in Alberta. The integration of technical teams from both legacy companies is underway, with ongoing asset optimization initiatives.
Portfolio Optimization
As part of its integration and strategic portfolio realignment, Whitecap also announced divestitures totaling approximately $270 million. The asset sales include:
- Approximately 8,000 boe/d of medium oil production (90% liquids) in southwest Saskatchewan
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An 8.333% working interest in a natural gas processing facility in the Kaybob region
These non-core assets are being sold to streamline operations and focus capital on higher-return development areas. The divestitures are expected to close before June 30, 2025.
Western Canada Land Sales Slow as Oil Prices Drop, but Montney and Elmworth Stay Hot
“The Montney is like Canada’s Permian.”
Leasing activity for oil and gas rights in Alberta is losing momentum as crude prices soften. The average price for oil sands leases has fallen to C$771 per hectare, down 18% from last year. Outside oil sands regions, prices are down 25%, signaling reduced appetite from producers.
The drop follows a surge in 2024 driven by the Trans Mountain pipeline expansion, which added 600,000 bpd of export capacity and sparked record lease demand. Now, lower prices and increased global supply are curbing interest in new drilling rights.
Still, fundamentals remain strong. Oil sands output is expected to rise by 500,000 bpd to 3.8 million bpd by 2030, with more volumes flowing through Trans Mountain. Enbridge is also advancing plans to add 150,000 bpd of takeaway capacity on its Mainline. Meanwhile, a new LNG terminal in British Columbia is set to boost natural gas demand.
Fort Kent and Elmworth Draw Top Prices
Select areas continue to see premium pricing. In March, Synergy Land Services Ltd. paid C$12,016 per hectare for land in the Fort Kent field, the highest price for oil sands land since 2007.
In the Elmworth area of the Montney formation, leases averaged C$1,734 per hectare in 2024—the highest since 2003. In a standout September deal, Millennium Land Ltd. paid C$27,556 per hectare, marking the priciest single transaction since 2013.
Elmworth yielded over 14,000 bpd last year, with Veren Inc. contributing nearly 12,000 bpd. Gas production equaled 106,000 boe/d, led by Strathcona Resources Ltd., which recently sold its Montney assets. NuVista Energy Ltd. and Lexterra Land Ltd. also remain active in the area.
Montney Formation: A Core Growth Basin
The Montney formation, spanning Alberta and British Columbia, holds an estimated 449 Tcf of gas, 14.5 billion barrels of NGLs, and 1.13 billion barrels of oil, making it Canada’s top unconventional resource.
“The Montney is like Canada’s Permian,” said Amanda Wu, analyst at Wood Mackenzie. “The volume potential and inventory depth are unmatched in the Canadian market.”
While broad lease activity is cooling, high-value zones like Montney and Elmworth continue to draw strong interest and capital.
