Canadian Natural Resources buys $6.5 billion of Chevron assets

Canadian Natural Resources (TXS: CNQ) is buying Chevron’s (NYSE: CVX) assets in Canada’s Athabasca Oil Sands and Duvernay Shale for $6.5 billion.

The all-cash transaction, which is expected to close in the fourth quarter, is a part of Chevron’s strategy to divest $10 billion to $15 billion of assets by 2028. 

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

These properties and operation contributed 84,000 barrels of oil equivalent per day (boepd) of production to the oild giant last year.

The deal will bring Canadian Natural’s (CNRL) total current working interest in the operations to 90%.

“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,” president Scott Stauth said in the statement.

CNRL, a senior Canadian oil and natural gas provider, operates primarily in the Western Canadian provinces of British Columbia, Alberta, Saskatchewan, and Manitoba. It has offshore operations in the United Kingdom sector of the North Sea, Côte de Ivore and Gabon.

The firm also raised its quarterly dividend by 7% to 56.25 Canadian cents per share, effective with the next regular payment in January 2025.