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.

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 $0.69 per share. The Company will also assume Painted Pony’s total debt of approximately $350 million. This transaction value represents approximately 1% of Canadian Natural’s enterprise value and does not materially impact the Company’s balance sheet strength or liquidity position. Painted Pony’s land and production are located within Canadian Natural’s core area providing opportunity to leverage synergies with a significant amount of pre-built infrastructure and transportation available.

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

FAQ

What is the purpose of Canadian Natural's acquisition of Painted Pony Energy?

The acquisition aims to strengthen Canadian Natural's natural gas assets and production base.

How much is Canadian Natural paying for Painted Pony Energy?

Canadian Natural is acquiring Painted Pony for $0.69 per share, with a total debt assumption of approximately $350 million.

When is the acquisition of Painted Pony Energy expected to close?

The transaction is targeted to close in late Q3 or early Q4 of 2020.

What production will Canadian Natural acquire from Painted Pony?

Canadian Natural will acquire approximately 270 million cubic feet per day of natural gas and 4,600 barrels per day of NGLs.

How will the acquisition impact Canadian Natural's financial position?

The acquisition will represent about 1% of Canadian Natural's enterprise value and is not expected to materially impact the company's balance sheet strength or liquidity.