Current CNQ Stock Info

Canadian Natural Resources Limited (ticker: CNQ) has entered into an agreement to acquire heavy oil assets in the Greater Pelican Lake region and other miscellaneous assets in northern Alberta from Cenovus Energy Inc. (ticker: CVE), for gross cash consideration of $975 million.

Canadian Natural Resources Buys Assets from Cenovus for $975 Million

Source: Cenovus Energy

The assets generate production of approximately 19,600 BOEPD, Canadian Natural Resources said in a press release.

Cenovus plans to use proceeds from the sale against the $3.6 billion asset-sale bridge facility put in place to help fund Cenovus’s acquisition of assets from ConocoPhillips earlier this year, the company said in a statement.

Cenovus intends to retire the first tranche of the bridge facility, the company said. The remaining two tranches mature in November 2018 and May 2019.

“This represents a significant first step in our strategy to optimize our asset portfolio and deleverage our balance sheet as planned following the acquisition of the ConocoPhillips assets,” said Brian Ferguson, Cenovus President & Chief Executive Officer.

“The divestiture processes for the remainder of our legacy conventional assets are proceeding as expected, with strong interest from potential buyers.”

The sale process for the company’s Suffield oil and natural gas assets is well advanced, Cenovus said in a statement, noting it also has data rooms open for its Palliser assets in southern Alberta as well as its Weyburn carbon-dioxide enhanced oil recovery operation in Saskatchewan.

The company intends to apply proceeds from these additional asset sales against its outstanding debt and remains focused on reaching its target of being below two times net debt to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2019.

CIBC Capital Markets and Barclays Capital Canada Inc. acted as financial advisors to Cenovus for the Pelican Lake transaction.

The companies said that the transaction is targeted to close on or before September 30, 2017.

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