Whitecap Resources to Acquire Midway Energy for $550 Million - Whitecap Expands its Light Oil Business in Cardium Play by Acquiring Midway - Deal Analysis from GlobalData by GlobalData

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Whitecap Resources Inc. (Whitecap), a company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids, agreed to acquire all the issued and outstanding common shares of Midway Energy Ltd. (Midway), an oil and gas company, for a purchase consideration of approximately CAD550.3m ($549.74m), including the assumption of net debt of CAD100.8m ($100.7m). The offer price of CAD4.85 ($4.85) per share represents a 12.8% premium on the closing market price of Midway’s common shares on February 27, 2012 and a 22.3% premium on the volume weighted average trading price of Midway’s common shares for the 10 trading days ending February 27, 2012. Under the terms of the transaction, Midway shareholders shall have the choice of receiving, for each Midway common share held: CAD4.85 ($4.85) cash, 0.4802 of a Whitecap common share, or a combination of cash and Whitecap shares. The company will pay Midway shareholders approximately CAD111.2m ($111.09m) in cash and issue approximately 33.5 million Whitecap shares. Holders of Midway warrants that are exercisable at an exercise price of $4 per Midway common share will receive CAD0.85 ($0.85) in cash for each Midway warrant held. National Bank Financial Inc. and GMP Securities L.P. are acting as financial advisors, whereas Macquarie Capital Markets Canada Ltd. is acting as strategic advisor to Whitecap in the transaction.

More Info
									             Whitecap Resources to Acquire Midway Energy for $550
           Million - Whitecap Expands its Light Oil Business in Cardium
            Play by Acquiring Midway - Deal Analysis from GlobalData
       Reference Code: GDGE0368M&A                                                                                                                      Publication Date: April 2012


       1         Table of Contents
       1 Table of Contents.................................................................1           1.1       List of Tables
        1.1 List of Tables .................................................................1
                                                                                                       Table 1: Canada, Major Deals of Whitecap, 2010 – till date...... 3
        1.2 List of Figures ................................................................1
                                                                                                       Table 2: Canada, Major Deals in Cardium Play, 2010 – till date 4
       2 Whitecap Resources to Acquire Midway Energy for $550
         Million...................................................................................2   Table 3: Companies Involved .................................................... 5
        2.1 Deal Overview ...............................................................2             Table 4: Financials of the Deal .................................................. 5
                                                                                                       Table 5: Advisor Information ..................................................... 5
        2.2 Deal in Brief ...................................................................2
                                                                                                       Table 6: Target Information ....................................................... 5
        2.3 Whitecap Expands its Light Oil Business in Cardium
              Play by Acquiring Midway .............................................2                  Table 7: Target’s Financial Information .................................... 5
        2.4 Cardium Play is Becoming Attractive to Oil and Gas                                         Table 8: Share Price Information ............................................... 6
                                                                                                       Table 9: Company Valuation Multiples ...................................... 6
              Exploration Companies .................................................4
                                                                                                       Table 10: Target’s Production and Reserves Information ......... 6
        2.5 Deal Financials and Valuations .....................................5
       3 Appendix ..............................................................................7      Table 11: Company Valuation Multiples .................................... 6
        3.1 Methodology ..................................................................7            Table 12: Commodity Prices in $, Last Close ............................ 6
                                                                                                       Table 13: Acquirer Information .................................................. 7
        3.2 Contact Us.....................................................................8
        3.3 Disclaimer......................................................................8
                                                                                                       1.2       List of Figures
                                                                                                       Figure 1:  Canada, Change in Whitecap’s 1P Reserves after
                                                                                                                 the Transaction, MMboe, 2012................................. 2
                                                                                                       Figure 2: Whitecap, Increase in Production and 1P Reserves
                                                                                                                 through Inorganic Route, MMboe and boe/d, 2009 –
                                                                                                                 2012 ......................................................................... 3




                                                                                                                                                         GDGE0368M&A / APR 2012
Whitecap Resources to Acquire Midway Energy for $550 Million -
                                                                                                                                                                               Page 1
Whitecap Expands its Light Oil Business in Cardium Play by Acquiring
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Midway
                                                                                                                                            reproduced, shared or resold in any form
       2       Whitecap Resources to Acquire                             2.3                                               Whitecap Expands its Light Oil Business in
               Midway Energy for $550 Million                                                                              Cardium Play by Acquiring Midway
       2.1     Deal Overview                                             Whitecap’s plan to acquire Midway is in line with its business
                                                                         strategy of expanding its light oil business. Whitecap already
       Deal Type:                  Acquisition (100%)                    has its presence in the Cardium play with 166 million barrels
       Deal Status:                Announced                             (MMbbl) of discovered petroleum initially in place (DPIIP). The
                                                                         acquisition of Midway will help the company to complement its
       Announced Date:              February 28, 2012                    existing Cardium assets. Whitecap’s key oil producing assets in
                                                                         Cardium play are located in East Pembina, South Pembina and
       2.2     Deal in Brief                                             the Willesden Green areas of the West Central Alberta region.
       Whitecap Resources Inc. (Whitecap), a company engaged in
								
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