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Featured Company News - Canadian Natural Resources Acquires Cenovus Energy’s Pelican Lake Heavy Oil Operations

Thursday, 07 September 2017 07:50 AM

Pro-Trader Daily

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LONDON, UK / ACCESSWIRE / September 7, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Canadian Natural Resources Ltd (NYSE: CNQ), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=CNQ. The Company announced on September 05, 2017, that it has signed an agreement with Cenovus Energy Inc. (NYSE: CVE) to acquire the assets in the Greater Pelican Lake region and miscellaneous other assets based in Northern Alberta. The all-cash transaction is expected to be valued at approximately C$975 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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This is Canadian Natural's second major acquisition in the current financial year. In May 2017, the Company had completed the acquisition of oil sand assets from Shell and Marathon Oil Corporation in a C$8.24 billion deal.

Details of the acquisition

The Pelican Lake Operations owned by Cenovus is located in the Greater Pelican Region around 300 kilometers north of Edmonton in Alberta, Canada. The production of heavy oil at the Pelican Lake started in 1997. The current heavy oil production from the Pelican Lake operations and the natural gas production from other miscellaneous assets in northern Alberta is approximately 19,600 BOE/d (Barrels of oil equivalent per day). The acquisition of Cenovus' assets will be complementary to Canadian Natural's existing operations and oil and gas fields owned by it in the Pelican Lake area. The transaction is expected to close on or before September 30, 2017, subject to regulatory approvals and other closing conditions.

Cenovus plans to utilize the funds raised from the asset sale to pay off part of its $3.6 billion bridge loan taken by the Company in May 2017 to acquire certain assets in Western Canada from ConocoPhillips Co. (NYSE: COP). The remaining two installments on the loan are due in November 2018 and May 2019. Cenovus had paid approximately $17.7 billion for the ConocoPhillips' assets. Cenovus has lined up certain assets for sale as a part of the Company's business strategy to deleverage its balance sheet which has been burdened due to the debts incurred in acquiring assets from ConocoPhillips. The assets lined up for sale by Cenovus include Suffield oil and natural gas assets (which are in advanced stage of sale), its Palliser assets in southern Alberta, its Weyburn carbon-dioxide enhanced oil recovery operation in Saskatchewan, and other non-core assets.

Commenting on the assets sale, Brian Ferguson, President and CEO of Cenovus, said:

"This represents a significant first step in our strategy to optimize our asset portfolio and deleverage our balance sheet as planned following the acquisition of the ConocoPhillips assets. The divestiture processes for the remainder of our legacy conventional assets are proceeding as expected, with strong interest from potential buyers."

About Cenovus Energy Inc.

Calgary, Alberta based Cenovus is a Canadian integrated oil Company whose operations include oil sands projects in northern Alberta and natural gas and oil production in Alberta, British Columbia, and Saskatchewan. It also has 50% ownership stake in two US based refineries. It uses specialized methods to drill and pump the oil to the surface at its oil sands projects in northern Alberta

About Canadian Natural Resources

Canadian Natural is headquartered in Calgary, Alberta in Canada and is one of the largest independent crude oil and natural gas producers in the world. The Company has a diversified combination of assets in North America, the North Sea, and Offshore Africa. Its product portfolio is a mix of natural gas, light crude oil, heavy crude oil, bitumen, and synthetic crude oil.

Last Close Stock Review

At the closing bell, on Wednesday, September 06, 2017, Canadian Natural Resources' stock climbed 3.18%, ending the trading session at $32.73. A total volume of 1.79 million shares have exchanged hands. The Company's stock price advanced 14.72% in the last three months, 12.01% in the past six months, and 1.65% in the previous twelve months. Moreover, the stock gained 2.67% since the start of the year. The stock is trading at a PE ratio of 30.39 and has a dividend yield of 2.32%. The stock currently has a market cap of $39.22 billion.

At the close of trading session on Wednesday, September 06, 2017, Cenovus Energy's stock price rose 1.57% to end the day at $8.42. A total volume of 4.29 million shares were exchanged during the session. The Company's stock price advanced 2.18% in the last one month and 4.60% in the past three months. The Company's shares are trading at a PE ratio of 4.56 and have a dividend yield of 1.78%. At Wednesday's closing price, the stock's net capitalization stands at $9.89 billion.

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