Cygnet Energy to acquire Kiwetinohk in $1 billion deal (updated)

Kiwetinohk Energy

28/10/2025 11:17

Adds background and details in paragraphs 2,3 and 6

Oct 28 (Reuters) - Privately held Cygnet Energy will acquire Kiwetinohk Energy KEC.TO in an all-cash deal valued at C$1.4 billion ($998.29 million), including debt, the companies said on Tuesday, creating a larger Montney and Duvernay operator.

Montney and Duvernay, in Alberta, are among Canada's most prolific shale oil and gas plays, driving much of the recent production growth and investment in the western part of the country.

Earlier this year, Cenovus Energy CVE.TO and Strathcona Resources SCR.TO entered a takeover battle for MEG Energy MEG.TO, as the companies eyed its coveted asset, Christina Lake oil sands project, which is also located near Alberta.

Cygnet will pay C$24.75 per share, representing a premium of 10.4% to Kiwetinohk's last close according to Reuters calculations.

     The deal combines complementary assets in the Simonette and Placid areas of Alberta, giving the merged company more than 44,000 barrels of oil equivalent per day of liquids-weighted production.

The acquisition will establish Cygnet as a leading operator of Duvernay and Montney assets, the company said.

Funding for the acquisition will be provided by investment funds of existing Cygnet shareholder NGP Energy Capital Management and global investment firm Carlyle CG.O, who will join as a new investment partner in Cygnet.

The deal is excepted to close in late December, the companies said.

($1 = 1.4024 Canadian dollars)

 (Reporting by Tanay Dhumal in Bengaluru; Editing by Krishna Chandra Eluri)

 ((Tanay.Dhumal@thomsonreuters.com; Twitter: https://twitter.com/TanayDhumal;))