Kiwetinohk Energy (KEC) M&A Announcement summary

Deal rationale and strategic fit

• The transaction follows a comprehensive business strategy review initiated in March 2025 to unlock shareholder value and deliver returns aligned with the company's asset base and operational achievements.

• The arrangement was selected as the preferred strategic alternative after evaluating multiple options, including maintaining the status quo.

• Acquisition by a private exploration and production company backed by major energy investment funds, including NGP Energy Capital Management and The Carlyle Group.

• Entry of major international investors into Canada signals renewed industry interest in the Duvernay play.

Financial terms and conditions

• All outstanding shares will be acquired for $24.75 per share in cash, representing a 63% premium to the pre-review share price, except for 22% (Rollover Shares) exchanged for equity in the acquirer.

• The deal values the enterprise at $1.4 billion, with a 3.5x multiple of estimated 2025 adjusted funds flow and a value per flowing barrel of production of approximately $41,500.

• Premium over total approved NPV 15 reserve value before tax of $1.3 billion.

• The transaction is not subject to financing conditions, with cash consideration provided primarily by NGP and Carlyle.

• Formal valuation placed fair market value between $22.00 and $27.00 per share.

Synergies and expected cost savings

• The company has exited or sold most of its power business assets, with full exit expected before deal closure, streamlining operations.

• Expected benefits to shareholders highlighted as a key outcome of the arrangement.