Yitzhak Tshuva in a mega-deal: Energy company acquired for 38.5 million dollars
Significant expansion in energy operations in Canada: InPlay, partially held by Delek Group managed by Idan Walles, acquired a Canadian oil and gas company for tens of millions of dollars. This is another strategic move supporting continued value creation and the expansion of energy activity in North America. Since Delek's investment in InPlay, the stock has jumped by about 50%.
The Canadian energy company InPlay Oil, in which Delek Group holds approximately 33%, announced on Wednesday the signing of a binding agreement to acquire a private oil and gas company in Canada for approximately 54.25 million Canadian dollars in cash (38.5 million US dollars).
The tax rate on energy investments in Canada is only about 40%, a fact that attracts companies from all over the world. Since Delek Group invested in InPlay, the stock has jumped by about 50%.
Value growth from the first year
The acquired company currently produces about 1,400 barrels of oil equivalent per day (boe/d), with about 85% of the production being light oil and natural gas liquids (NGLs). Upon completion of the transaction, InPlay's production is expected to rise to more than 20,100 barrels of oil equivalent per day, with light oil production expected to cross the 10,500 barrels per day threshold.
The transaction was executed at an attractive valuation, at a multiple of about 2 on net operating income, and is expected to be value-accretive from the first year. According to the company's forecasts, in 2026 it expects to increase AFF and FAFF per share by about 18%, alongside a growth of about 12% in oil production per share and an increase of about 14% in cash flow per barrel.
The acquired assets are located adjacent to InPlay's existing areas of operation and are supported by facilities and infrastructure already owned by the company. The transaction is expected to generate significant operational synergies and annual savings of about 2.5 million Canadian dollars, without the need to increase manpower. In addition, the assets include more than 50 identified drilling locations, with about 75% of them classified as Tier 1 — the company's highest quality drilling inventory — with a payback period of less than a year and a half, assuming a WTI oil price of 70 dollars per barrel.
The transaction will be financed through the company's existing credit facility, while maintaining a conservative financial profile. The net debt to EBITDA ratio is expected to be 1.2x-1.3x at the end of 2026, while as of June 30, 2026, the company holds a working capital surplus of about 17.7 million Canadian dollars.
Delek Group: continued value creation in North America
In parallel with the completion of the transaction, InPlay updated its forecasts for 2026 upwards. The company now expects annual production of 18,900-19,400 barrels of oil equivalent per day, alongside an investment budget of 80-82 million Canadian dollars, AFF of 161-169 million Canadian dollars, and FAFF of 79-89 million Canadian dollars.
Alongside continued growth, InPlay maintains its dividend distribution policy, paying a monthly dividend of 0.09 Canadian dollars per share, or 1.08 Canadian dollars per year, reflecting a dividend yield of about 7.2%.
This acquisition strengthens InPlay's growth strategy by expanding the asset base in its core areas, while increasing production volumes, improving cash flow, and maintaining financial robustness. For Delek Group, which holds about a third of the company's shares, this is another strategic move that supports continued value creation and the expansion of energy activity in North America.
