Chord Energy (NASDAQ:CHRD) disclosed on Wednesday its intention to acquire Canadian energy company Enerplus (NYSE:ERF), marking a significant move that will form a new powerhouse in the Williston basin with an enterprise value estimated at $11 billion. This strategic acquisition aligns with the ongoing consolidation trend in the U.S. oil and gas industry, positioning the combined entity as a dominant force in the Williston basin of North Dakota. The merged company will manage approximately 1.3 million net acres and have a production capacity of about 287,000 barrels of oil equivalent per day.

Following the announcement, Enerplus shares surged over 10% intra-day today.

The acquisition agreement stipulates that Enerplus shareholders will get 0.10125 shares of Chord Energy common stock and $1.84 in cash for each share of Enerplus they own. Given Chord Energy's stock price at the close of the announcement day, the equity value of this deal is projected to be around $3.8 billion.