- Chevron (NYSE:CVX) will sell its non-operated interests in Alberta to Canadian Natural Resources (TSX:CNQ) for US$6.5 billion
- The integrated energy company is selling a 20 per cent non-operated interest in the Athabasca Oil Sands Project, 70 per cent operated interest in the Duvernay shale, and related interests
- This acquisition adds approximately 62,500 bbl/d of long life no decline synthetic crude oil production
- Canadian Natural Resources stock last traded at C$48.22 per share and Chevron stock last traded at C$205.02 per share
Chevron (NYSE:CVX) will sell its non-operated interests in Alberta to Canadian Natural Resources (TSX:CNQ) for US$6.5 billion.
The integrated energy company is selling a 20 per cent non-operated interest in the Athabasca Oil Sands Project, 70 per cent operated interest in the Duvernay shale, and related interests. The company added that this transaction progresses its plans to divest US$10 billion to US$15 billion in assets by 2028 to optimize its global energy portfolio.
This acquisition brings Canadian Natural’s total current working interest in the Athabasca Oil Sands Project to 90 per cent. The acquisition adds approximately 62,500 bbl/d of long life no decline synthetic crude oil production. The agreement also includes the acquisition of additional various working interests in several other non-producing oil sands leases with aggregate size of approximately 404 to 1,000 square km.
“These assets are a great fit for Canadian Natural and will allow us to further implement our strong operating culture and drive significant value for shareholders,” Canadian Natural’s president Scott Stauth, said in a news release. “We have made significant progress in driving efficiencies at AOSP over the last seven years since the original acquisition in May 2017. We expect further efficiencies and improved performance going forward as a result of our relentless focus on continuous improvement. The light crude oil- and liquids-rich Duvernay assets fit well with our current operations in the area and will drive significant value from our area knowledge and significant experience in this type of resource play. Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value.”
To fund the acquisition cost, Canadian Natural has obtained a $4 billion term loan facility, along with existing cash and committed bank facilities.
The transaction is expected to close during Q4 2024.
Chevron is a major producer of crude oil and natural gas; manufacturing transportation fuels, lubricants, petrochemicals and additives; and developing emerging technologies for renewable fuels, hydrogen, carbon capture and carbon offsets.
Canadian Natural Resources Ltd. is a senior oil and natural gas production company with operations in Western Canada, the U.K. portion of the North Sea and Offshore Africa.
Canadian Natural Resources stock (TSX:CNQ) last traded at C$48.22 per share and has risen 11.95 per cent since the beginning of the year.
Chevron stock (NYSE:CVX) last traded at C$205.02 per share and has risen 1.84 per cent since the year began.
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