Canadian Natural Resources buying Chevron’s Alberta assets for US$6.5B

Canadian Natural Resources Ltd. has reached an agreement to purchase Chevron Canada Ltd.’s interests in the Athabasca Oil Sands Project and Duvernay shale for US$6.5 billion.

“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 president Scott Stauth stated in a Monday release.

“Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value,” he added.

The deal encompasses Chevron’s 20 percent interest in the Athabasca Oil Sands Project, which includes 20 percent of the Muskeg River and Jackpine mines, the Scotford Upgrader, and the Quest Carbon Capture and Storage facility.

Following this transaction, Canadian Natural’s total working interest in these operations will rise to 90 percent.

Additionally, Canadian Natural will acquire Chevron’s 70 percent operated working interest in light crude oil and liquids-rich assets in the Duvernay play in Alberta.

The all-cash agreement has an effective date of Sept. 1, 2024, and is anticipated to close during the fourth quarter of 2024, pending regulatory approvals and other customary closing conditions.

Furthermore, Canadian Natural announced it will increase its quarterly dividend to shareholders by seven percent to 56.25 cents per share, starting with the next regular payment in January 2025.