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Sept. 26, 2022, 7:11 a.m. EDT

Canadian energy company Hammerhead Resources to go public via SPAC merger in C$1.39 billion deal

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By Ciara Linnane

Canadian energy company Hammerhead Resources Inc. is going public via a merger with Decarbonization Plus Acquisition Corporation IV /zigman2/quotes/229948709/composite DCRD +0.39% in a deal valued at about C$1.39 billion ($1.02 billion), the companies said in a joint statement. Once the deal closes, the combined company is expected to list on Nasdaq under the new ticker "HHRS." The deal is expected to close in the first quarter of 2023, and the company will continue to be led by the current executive team under Chief Executive Scott Sobie. Calgary-based Hammerhead has about 111,000 net acres and 146 gross producing wells in the light oil window of the Alberta Montney. "The development program planned for the next four years consists of locations that are expected to generate well-level economics of 100-230+% IRRs at a long-term planning price deck of $80 WTI and $4.50 NYMEX," said the statement. The new entity is expected to have gross proceeds from the deal of $320 million which it will use to accelerate its CCS decarbonization program.

/zigman2/quotes/229948709/composite
US : U.S.: Nasdaq
$ 10.20
+0.04 +0.39%
Volume: 2,746
Dec. 8, 2022 11:29a
P/E Ratio
19.92
Dividend Yield
N/A
Market Cap
$401.64 million
Rev. per Employee
N/A
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