Hammerhead Resources to Combine With SPAC in $1 Billion Deal

Paul, Weiss is advising Hammerhead Resources Inc., a Calgary-based energy company, in its business combination with special purpose acquisition company (SPAC) Decarbonization Plus Acquisition Corporation IV. The transaction values Hammerhead at $1 billion (C$1.39 billion). The combination will form a publicly traded upstream oil and gas company with a path toward achieving net zero emissions by 2030.

The parties anticipate gross proceeds of approximately $320 million, assuming minimal redemptions, which will be used to accelerate Hammerhead's carbon capture and sequestration program, creating value for all stakeholders. The transaction is expected to close in the first quarter of 2023.

The Paul, Weiss team includes corporate partners Ian Hazlett and Adam Givertz; tax partners Matthew Jordan and David Mayo; and antitrust counsel Marta Kelly.