Whitecap Resources Inc. entered into a purchase and sale agreement to acquire Xto Energy Canada from Imperial Oil Limited and ExxonMobil Canada Ltd. for approximately CAD 1.9 billion.

Whitecap Resources Inc. (TSX:WCP) entered into a purchase and sale agreement to acquire Xto Energy Canada from Imperial Oil Limited (TSX:IMO) and ExxonMobil Canada Ltd. for approximately CAD 1.9 billion on June 28, 2022. Whitecap will acquire XTO Energy Canada for total cash consideration of approximately CAD 1.9 billion and the assumption of estimated positive working capital on closing for a net purchase price of CAD 1.7 billion (the "Acquisition"). As part of the agreement, Imperial will get CAD 940 million for ImperialÆs share.

The acquisition will be funded through existing credit facilities and a new committed 4-year term loan. In connection with the acquisition, Whitecap has obtained a financing commitment for a new CAD 1.1 billion 4-year term loan which results in total credit capacity of CAD 3.1 billion. The acquisition is subject to customary closing conditions, including the receipt of necessary regulatory approvals.

The transaction is expected to close prior to the end of the third quarter of 2022. All-cash transaction drives accretion to key 2023 per share metrics including 27% on funds flow, 20% on free funds flow and 27% on production. National Bank Financial Inc. acted as financial advisor to Whitecap.

National Bank Financial Markets and TD Securities are acting as joint bookrunners and co-lead arrangers with respect to the term loan facilities. RBC Capital Markets acted as exclusive financial advisor to Imperial and ExxonMobil Canada in connection with the transaction.