Two major Alberta energy companies are joining forces in a deal valued at about C$10 billion, creating one of Canada’s largest publicly traded oil producers focused on the Clearwater region.

Tamarack Valley Energy and Headwater Exploration announced the all-stock merger on September 8, with Headwater shareholders set to receive one Tamarack share for each share they own. After completion, Tamarack shareholders are expected to hold 66.5% of the combined company, while Headwater shareholders will own 33.5%.

The combined business is expected to produce more than 80,000 barrels of oil equivalent per day at run-rate production levels. The companies say the merger will create greater scale, operational efficiencies and stronger access to infrastructure and export markets.

The transaction is expected to close in the fourth quarter of 2026, subject to shareholder, court and regulatory approvals. Certain non-core exploration assets will also be transferred to a new company called Tributary Exploration.

The deal highlights the continuing consolidation of Canada's energy industry as producers seek larger operations, stronger infrastructure positions and greater efficiency.