Canadian Natural Resources Limited Completes the Acquisition on Chevron's Alberta Assets and Announces Timing of 2025 Budget Release

Rhea-AI Summary

Canadian Natural Resources (CNQ) has completed the acquisition of Chevron Canada's Alberta assets, including a 20% interest in the Athabasca Oil Sands Project (AOSP) and a 70% operated interest in Duvernay assets. With this acquisition, CNQ now owns 90% of AOSP, which includes the Muskeg River and Jackpine mines, Scotford Upgrader, and Quest Carbon Capture facility.

The company projects 2025 production from these assets at approximately 122,500 BOE/d, comprising 62,500 bbl/d of Synthetic Crude Oil from AOSP and 60,000 BOE/d from Duvernay (179 MMcf/d natural gas and 30,000 bbl/d liquids). The acquisitions are expected to generate immediate free cash flow and create opportunities for long-term shareholder value. CNQ will release its 2025 Budget details on January 9th, 2025.

Positive

• Increased ownership in AOSP to 90%, strengthening position in oil sands
• Expected production addition of 122,500 BOE/d in 2025
• Immediate free cash flow generation from acquired assets
• Acquisition includes strategic assets: Muskeg River and Jackpine mines, Scotford Upgrader, and Quest Carbon Capture facility

Negative

• None.

Insights

Financial Analyst

The acquisition of Chevron's Alberta assets marks a significant strategic expansion for Canadian Natural Resources. The deal adds 122,500 BOE/d to CNQ's production portfolio, with 62,500 bbl/d coming from stable SCO production at AOSP and 60,000 BOE/d from the Duvernay assets. By increasing its AOSP ownership to 90%, CNQ strengthens its position in long-life, low-decline oil sands assets while gaining operational synergies.

The Duvernay assets provide valuable diversification with both natural gas and liquids production. The immediate free cash flow generation from these assets will enhance CNQ's already robust financial position. The timing is strategic, as natural gas prices are expected to strengthen with increasing LNG export capacity. This acquisition aligns with CNQ's track record of acquiring quality assets at favorable valuations and efficiently integrating them into their operations.

Energy Market Analyst

The strategic significance of this acquisition extends beyond production numbers. By controlling 90% of AOSP, CNQ gains enhanced operational flexibility and cost optimization opportunities. The Quest Carbon Capture and Storage facility inclusion is particularly noteworthy, strengthening CNQ's ESG profile at a time when carbon management is increasingly critical for oil sands operators.

The Duvernay assets represent a high-quality addition to CNQ's portfolio, with 179 MMcf/d of natural gas and 30,000 bbl/d of liquids. The 70% operated interest provides significant control over development pace and capital allocation. This diversified production mix enhances CNQ's portfolio resilience against commodity price volatility while maintaining exposure to potential upside in both oil and gas markets.

Calgary, Alberta--(Newsfile Corp. - December 6, 2024) - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) ("Canadian Natural" or the "Company") announces it has completed the acquisition of Chevron Canada Limited's ("Chevron") Alberta assets, which include a 20% interest in the Athabasca Oil Sands Project ("AOSP") and a 70% operated interest in light crude oil and liquids rich Duvernay assets. Canadian Natural now owns 90% of AOSP, which includes the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Capture and Storage facility. The acquisition also includes various working interests in a number of other non-producing oil sands leases.

The Company targets 2025 production from these acquired assets to be approximately 122,500 BOE/d⁽¹⁾, consisting of 62,500 bbl/d of long life no decline Synthetic Crude Oil ("SCO") at AOSP and approximately 60,000 BOE/d from the Duvernay, comprised of 179 MMcf/‌d of natural gas and 30,000 bbl/d of liquids. Both acquisitions provide Canadian Natural with immediate free cash flow generation and further opportunities to drive long-term shareholder value.

Canadian Natural welcomes the Chevron employees that will be joining as part of the acquisitions to its Field and Calgary head office teams.

With the closing of these acquisitions, the Company is now finalizing its 2025 Budget. Canadian Natural will release its 2025 Budget details and host a conference call at 7:00am MST on January 9th, 2025. Further details of the conference call will be provided on our website.

Canadian Natural is a senior crude oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.

CANADIAN NATURAL RESOURCES LIMITED
T (403) 517-6700     F (403) 517-7350    E ir@cnrl.com
2100, 855 - 2 Street S.W. Calgary, Alberta, T2P 4J8
www.cnrl.com

SCOTT G. STAUTH
President

MARK A. STAINTHORPE
Chief Financial Officer

LANCE J. CASSON
Manager, Investor Relations

Trading Symbol - CNQ
Toronto Stock Exchange
New York Stock Exchange

(1) All Production and Reserves are presented on a "before royalties" basis and reflect Canadian Natural estimates.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Refer to our website for complete forward-looking statements. www.cnrl.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232786

FAQ

What assets did Canadian Natural Resources (CNQ) acquire from Chevron in Alberta?

CNQ acquired Chevron's 20% interest in the Athabasca Oil Sands Project (AOSP) and a 70% operated interest in Duvernay assets, including Muskeg River and Jackpine mines, Scotford Upgrader, and Quest Carbon Capture facility.

What is the expected 2025 production from CNQ's newly acquired Chevron assets?

The expected 2025 production is 122,500 BOE/d, consisting of 62,500 bbl/d of Synthetic Crude Oil from AOSP and 60,000 BOE/d from Duvernay assets.

When will Canadian Natural Resources (CNQ) release its 2025 budget?

CNQ will release its 2025 Budget details and host a conference call on January 9th, 2025, at 7:00am MST.