Canadian Natural Resources Limited Announces Acquisition of Painted Pony Energy Ltd.
Rhea-AI Summary
Canadian Natural Resources Limited has entered a definitive agreement to acquire Painted Pony Energy Ltd. for $0.69 per share, totaling approximately $350 million in debt. The acquisition, representing about 1% of Canadian Natural’s enterprise value, will enhance its natural gas assets and production base. The current production from Painted Pony includes 270 million cubic feet per day of natural gas and 4,600 barrels per day of NGLs. The deal is expected to close in late Q3 or early Q4 of 2020.
Positive
- Acquisition strengthens natural gas assets and production base.
- Provides synergy with existing infrastructure in core areas.
- Acquiring significant production of 270 million cubic feet per day of gas.
Negative
- Assumption of approximately $350 million in Painted Pony’s debt.
News Market Reaction – CNQ
In the trading session that priced this news, CNQ gained 1.86%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CALGARY, Alberta, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Canadian Natural Resources Limited (“Canadian Natural” or the “Company”) announces it has entered into a definitive arrangement agreement with Painted Pony Energy Ltd. (“Painted Pony”) relating to the acquisition of all the issued and outstanding common shares of Painted Pony, for a cash consideration of
Current production, before royalties, acquired by Canadian Natural, is approximately 270 million cubic feet per day of natural gas and 4,600 barrels per day of NGLs. The assets include properties in the Northeast British Columbia areas of Blair, Daiber, Kobes and Townsend.
In commenting on the acquisition, Canadian Natural’s President, Tim McKay stated, “This acquisition further strengthens Canadian Natural’s natural gas assets and production base in key operating areas and complements the Company’s diversified portfolio. This transaction also allows us to further insulate against natural gas costs in our oils sands operations and has minimal impact on the Company’s low overall corporate decline rate. We look forward to working together with the staff currently employed by Painted Pony.”
The transaction is targeted to close in late Q3 or early Q4, 2020, subject to normal closing conditions.
Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. sector of the North Sea and Offshore Africa.
CANADIAN NATURAL RESOURCES LIMITED 2100, 855 - 2nd Street S.W. Calgary, Alberta, T2P4J8 Phone: 403-514-7777 Email: www.cnrl.com ___________________________________________ TIM S. MCKAY President MARK A. STAINTHORPE Chief Financial Officer and Senior Vice-President, Finance JASON M. POPKO Manager, Investor Relations Trading Symbol - CNQ Toronto Stock Exchange New York Stock Exchange