Canadian Natural Buys Devon
Canadian Natural buys Devon.
Canadian Natural Resources buys the Canada assets of Devon Energy for $2.8 billion.
The deal, for Devon’s Jackfish oil sands project, heavy oil assets, 735 employees, and 1.5 million acres, firms up CNR’s position as the country’s biggest oil and gas producer.
Tim McKay of Canadian Natural said the assets give the company new opportunities to add value and deliver further balance to their production profile. ‘These high-quality assets complement our existing asset base and give further balance to our production profile, while not increasing the need for incremental market access out of western Canada, as it's existing production. The assets give us the opportunity to add value through synergies, including facility consolidation and operating and marketing efficiency opportunities, with targeted benefits of C$135 million on an annualized basis. Through economies of scale, as well as complementary research and development efforts, we target to leverage technology advancements across the combined portfolio to drive continuous improvement, cost reductions, and production optimization.’
Dave Hager of Devon said: ‘The sale of Canada is an important step in executing Devon’s transformation to a US oil growth business. This transaction creates value for our shareholders by achieving a clean and prompt exit from Canada while accelerating efforts to focus on our high-return US oil portfolio. I would like to express my sincere appreciation to all our Canadian employees for their hard work and dedication over the past two decades in building an industry-leading heavy oil business. With this change in ownership, it's great to see our talented and innovative employee base transition to a top-tier company like Canadian Natural Resources.’
Steve Laut of Canadian Natural said the added capacity allocates production at a price below the cost to build from scratch. ‘The acquired assets are in Canadian Natural’s backyard. This acquisition is a textbook definition of an excellent fit, resulting in a win for both parties, and provides further balance to our diverse portfolio. The ongoing opportunity to leverage technology, innovation, and drive synergies is further enhanced through the economies of scale gained.’
TD Securities served as financial adviser to Canadian Natural.
JP Morgan Securities served as lead financial adviser to Devon. Goldman Sachs also served as a financial adviser.
Canadian Natural Resources buys the Canada assets of Devon Energy for $2.8 billion.
The deal, for Devon’s Jackfish oil sands project, heavy oil assets, 735 employees, and 1.5 million acres, firms up CNR’s position as the country’s biggest oil and gas producer.
Tim McKay of Canadian Natural said the assets give the company new opportunities to add value and deliver further balance to their production profile. ‘These high-quality assets complement our existing asset base and give further balance to our production profile, while not increasing the need for incremental market access out of western Canada, as it's existing production. The assets give us the opportunity to add value through synergies, including facility consolidation and operating and marketing efficiency opportunities, with targeted benefits of C$135 million on an annualized basis. Through economies of scale, as well as complementary research and development efforts, we target to leverage technology advancements across the combined portfolio to drive continuous improvement, cost reductions, and production optimization.’
Dave Hager of Devon said: ‘The sale of Canada is an important step in executing Devon’s transformation to a US oil growth business. This transaction creates value for our shareholders by achieving a clean and prompt exit from Canada while accelerating efforts to focus on our high-return US oil portfolio. I would like to express my sincere appreciation to all our Canadian employees for their hard work and dedication over the past two decades in building an industry-leading heavy oil business. With this change in ownership, it's great to see our talented and innovative employee base transition to a top-tier company like Canadian Natural Resources.’
Steve Laut of Canadian Natural said the added capacity allocates production at a price below the cost to build from scratch. ‘The acquired assets are in Canadian Natural’s backyard. This acquisition is a textbook definition of an excellent fit, resulting in a win for both parties, and provides further balance to our diverse portfolio. The ongoing opportunity to leverage technology, innovation, and drive synergies is further enhanced through the economies of scale gained.’
TD Securities served as financial adviser to Canadian Natural.
JP Morgan Securities served as lead financial adviser to Devon. Goldman Sachs also served as a financial adviser.
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