Tamarack Valley Energy and Headwater Exploration have finalized a $10 billion all-stock merger aimed at becoming the leading producer focused on the Clearwater oil play. Under the terms, Headwater shareholders will receive one share of Tamarack for each share held, resulting in existing Tamarack shareholders owning around 66.5% of the new entity.
The merger is projected to boost Clearwater production to over 80,000 barrels of oil equivalent per day, alongside $50 million in net cash and more than $1.2 billion for funding. The combined assets will encompass over 1,500 sections, 300 million barrels of oil equivalent in reserves, and 3,000 drilling locations.
Tamarack plans to increase its quarterly dividend by 20% post-merger and aims for 10-12% production growth over five years. Some exploration assets will be spun off into a new entity, Tributary Exploration, which will focus on additional developmental opportunities.
Closing of the transaction is expected in Q4 2026, pending various approvals. Steve Buytels will serve as President and CEO of the combined company from January 1, 2027, with Tamarack’s founder transitioning to Executive Chairman.
