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CNRL to acquire Storm Resources for $6.28 per share

Canadian Natural Resources Ltd., at the company's annual meeting in Calgary, Thursday, May 3, 2012. THE CANADIAN PRESS/Jeff McIntosh

Canadian Natural Resources Ltd. (CNRL) says it has reached a deal to acquire Calgary-based oil and gas explorer Storm Resources Ltd. for $6.28 per share, a price that pegs Storm’s enterprise value at $960 million.

The purchase price represents an all-time high share price for Storm, as well as a premium of 10 per cent to Storm’s 10-day volume-weighted average trading price on the Toronto Stock Exchange as of the close of markets on Tuesday.

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The deal will give CNRL access to Storm’s existing production and infrastructure in the Montney area of northeast British Columbia, where CNRL already has operations.

READ MORE: CNRL requires workers be fully vaccinated or rapid test negative for COVID-19

CNRL says Storm’s current production in the area is approximately 136 million cubic feet per day of natural gas and 5,600 barrels per day of natural gas liquids.

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As part of the proposed deal, CNRL will assume Storm’s total debt of approximately $186 million. The deal is expected to close in December.

In August 2020, CNRL acquired another Montney producer, Painted Pony Energy Ltd., for $469 million.

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