Canadian Natural Resources Limited Prices US$1,500 Million in 5 and 10 Year USD Notes and C$500 Million in 7 Year CAD Notes

Rhea-AI Summary

Canadian Natural Resources (CNQ) has priced three new unsecured notes offerings totaling US$1.5 billion and C$500 million:

- 5-year USD notes: US$750M at 5.00% coupon, maturing December 15, 2029
- 10-year USD notes: US$750M at 5.40% coupon, maturing December 15, 2034
- 7-year CAD notes: C$500M at 4.15% coupon, maturing December 15, 2031

The offerings are expected to close on December 6, 2024. The proceeds will be used for general corporate purposes and debt repayment, including financing the previously announced Chevron Canada assets acquisition. Unused proceeds may be invested in short-term marketable securities.

Positive

• Successful pricing of US$1.5B and C$500M in new notes indicates strong market confidence
• Proceeds will help finance strategic acquisition of Chevron Canada assets
• Diversified debt structure with different maturities and currencies

Negative

• Increased debt load will affect company's leverage ratios
• Higher interest expenses due to new debt obligations

Insights

Financial Analyst

This debt offering totaling $2 billion (US$1.5 billion + C$500 million) represents a strategic financing move by Canadian Natural Resources. The company has secured favorable interest rates ranging from 4.15% to 5.40% across different maturities, demonstrating strong market confidence in their credit profile.

The proceeds will primarily fund the Chevron Canada assets acquisition, showcasing proactive balance sheet management. The diversified maturity profile (5, 7 and 10 years) helps spread refinancing risk, while the dual-currency structure provides natural hedging benefits given CNQ's Canadian operations. The pricing achieved is competitive in the current high-rate environment, particularly for the CAD notes at 4.177% yield.

The private placement approach to qualified institutional buyers and Canadian investors indicates a sophisticated debt strategy that minimizes regulatory hurdles while maintaining access to deep capital pools.

Calgary, Alberta--(Newsfile Corp. - December 3, 2024) - Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ) ("Canadian Natural" or the "Company") announces that on December 3, 2024, the Company priced the following unsecured notes (the "notes"):

Note	Coupon	Principal	Maturity	Price per Note	Yield to Maturity
5 year USD notes	5.00%	US$750,000,000	December 15, 2029	US$99.968	5.007%
10 year USD notes	5.40%	US$750,000,000	December 15, 2034	US$99.837	5.421%
7 year CAD notes	4.15%	C$500,000,000	December 15, 2031	C$99.836	4.177%

 

The offerings are expected to close on December 6, 2024, subject to customary closing conditions. Net proceeds from the sale of the notes are intended to be used for general corporate purposes and the repayment of indebtedness, including indebtedness incurred in connection with the previously announced agreement to acquire various assets from Chevron Canada Limited. The net proceeds that are not utilized immediately may be invested in short-term marketable securities.

The USD notes have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction and may not be offered or sold in the United States or to or for the account or benefit of any U.S. persons absent registration under the Securities Act or an applicable exemption from the registration requirements thereof. The USD notes are being offered and sold only to qualified institutional buyers in the United States in accordance with Rule 144A under the Securities Act and outside of the United States to non-U.S. persons in reliance on Regulation S under the Securities Act. The USD notes will be offered and sold in Canada on a private placement basis pursuant to certain exemptions from the prospectus requirements of applicable Canadian securities laws. The CAD notes will be offered to certain Canadian investors on a private placement basis pursuant to certain exemptions from the prospectus requirements of applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. 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. The Company does not undertake to update forward-looking statements except as required by applicable securities laws.

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws, including statements related to the offering of the notes, the use of the net proceeds from the sale of the notes and indebtedness incurred by the Company in connection with the previously announced agreement to acquire various assets from Chevron Canada Limited. The forward-looking statements are based on current expectations, estimates and projections about us and the industry in which we operate, which speak only as of the date hereof, and 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.

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

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232394

FAQ

What is the total value of notes offered by Canadian Natural Resources (CNQ) in December 2024?

Canadian Natural Resources offered notes totaling US$1.5 billion and C$500 million, comprising two USD denominated notes and one CAD note.

What are the interest rates for CNQ's December 2024 notes offerings?

The interest rates are 5.00% for 5-year USD notes, 5.40% for 10-year USD notes, and 4.15% for 7-year CAD notes.

How will Canadian Natural Resources (CNQ) use the proceeds from the December 2024 notes?

The proceeds will be used for general corporate purposes and debt repayment, including financing the acquisition of assets from Chevron Canada