US energy firm Chord Energy will acquire Canada’s Enerplus creating a Williston basin-focused entity with an enterprise value of $11 billion, Report informs referring to Reuters.

The US oil and gas industry is witnessing a wave of consolidation, as companies aim to secure future inventories.

The combined company is expected to be a premier operator in the Williston basin in North Dakota, with about 1.3 million net acres and 287,000 barrels of oil equivalent per day in production.

Enerplus shareholders will receive 0.10125 shares of the Chord common stock and $1.84 in cash for each common share of Enerplus.

The deal’s terms imply an equity value of about $3.8 billion as per Chord’s closing price on Wednesday, according to Reuters calculations.

“This combination further strengthens our Williston Basin position and represents a compelling opportunity for both companies’ shareholders,” Chord CEO Danny Brown said in a statement.

US-listed shared of Enerplus rose 10.6% after the bell, while Chord’s shares gained 4.2%.

The after-tax present value of synergies is expected to exceed $750 million, the companies said.

Chord said it would issue about 20.7 million shares of its common stock. The deal is expected to close by mid-2024.

The company’s shareholders will own about 67% of the combined company, while Enerplus shareholders will own the rest. The combined company will be led by Brown.