Cygnet Energy has entered into a definitive agreement to acquire Kiwetinohk Energy Corp. (KEC) for C$24.75 per share in cash, valuing the deal at approximately C$1.4 billion, including debt.
The acquisition combines complementary portfolios in the Montney and Duvernay formations, creating a scaled Canadian energy company with liquids-weighted production of over 44,000 barrels of oil equivalent per day.
Funding for the acquisition will be provided primarily by existing Cygnet investor NGP Energy Capital Management and new partner Carlyle, with ARC Financial Corp. rolling over a portion of its KEC shares into Cygnet equity. Collectively, shareholders representing 79% of KEC’s outstanding shares—including 38% of the minority shares—have agreed to support the transaction, which is expected to close in December 2025 pending court and regulatory approvals.
The transaction positions Cygnet as a leading operator in Alberta’s Duvernay and Montney regions, with enhanced infrastructure control, long-term market access, and extensive drilling inventory.
KEY QUOTES:
“We are pleased to announce this transaction and present this offer to KEC’s shareholders. We have long respected KEC’s high-quality portfolio and strong operating performance, and believe that the combination of our businesses is a positive step for both parties. Upon completion of the Acquisition, Cygnet will have a larger, more resilient platform with extensive inventory that is expected to drive our growth in the years ahead. We appreciate the ongoing support of our long-standing partners NGP and ARC Financial, and look forward to working with Carlyle as we move forward. This transaction is a positive outcome for all stakeholders, including KEC shareholders, employees, and the communities in which we operate.”
David Maddison, President and CEO, Cygnet Energy Ltd.
