Business
Canadian Natural Resources Limited Announces the Acquisition of Chevron's Alberta Assets and a 7% Dividend Increase
Calgary, Alberta--(Newsfile Corp. - October 7, 2024) - Canadian Natural Resources Limited (T...
About this update from Canadian Natural Resources Limited
[{"type":"text","content":"Canadian Natural Resources Limited Announces the Acquisition of Chevron's Alberta Assets and a 7% Dividend IncreaseCalgary, Alberta--(Newsfile Corp. - October 7, 2024) - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) (\"Canadian Natural\" or the \"Company\") announces that it entered into an agreement to acquire, subject to regulatory approvals, from Chevron Canada Limited (\"Chevron\") its 20% interest in the Athabasca Oil Sands Project (\"AOSP\"), which includes 20% of the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility. This acquisition brings Canadian Natural's total current working interest in AOSP to 90%. The acquisition adds approximately 62,500 bbl/d(1) of long life no decline Synthetic Crude Oil (\"SCO\") production, contributing to Canadian Natural's significant sustainable free cash flow generation. The agreement also includes the acquisition of additional various working interests in a number of other non-producing oil sands leases with aggregate acreage of approximately 267,000 gross / 100,000 net acres.In addition, Canadian Natural has also agreed to acquire, subject to regulatory approvals, Chevron's 70% operated working interest of light crude oil and liquids rich assets in the Duvernay play in Alberta. Production from these assets is targeted to average in 2025 approximately 60,000 BOE/d, consisting of 179 MMcf/d of natural gas and 30,000 bbl/d of liquids. These Duvernay assets provide the opportunity for meaningful near term growth while contributing additional free cash flow.The effective date for these acquisitions is September 1st, 2024 and are targeted to close in the fourth quarter of 2024. The aggregate consideration for these acquisitions will be a cash payment at close to Chevron of US$6.5 billion, before closing adjustments. These acquisitions add targeted 2025 production of approximately 122,500 BOE/d, and the addition of approximately 1,448 MMBOE of Total Proved plus Probable reserves(1).Commenting on the acquisitions, Canadian Natural's President Scott Stauth stated, \"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. We have made significant progress in driving efficiencies at AOSP over the last 7 years since the o...