Canadian Natural Resources Ltd. has signed a deal to buy 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 said in a statement Monday.
“Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long term shareholder value.”
The deal includes Chevron’s 20 per cent interest in the Athabasca Oil Sands Project, which includes 20 per cent of the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility.
The transaction will bring Canadian Natural’s total current working interest in the operations to 90 per cent.
Canadian Natural will also acquire Chevron’s 70 per cent operated working interest of 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 expected to close during the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.
In addition, Canadian Natural says it will increase its quarterly dividend to shareholders by seven per cent to 56.25 cents per share starting with its next regular payment in January 2025.