Canadian Natural doubles down on domestic production
Devon Energy Corp. (DVN.N) has agreed to sell its Canadian assets to Canadian Natural Resources Ltd. (CNQ.TO) for $3.8 billion.
Devon’s exit from this country doesn’t come as a surprise; the company telegraphed its desire to hive off its Canadian operations earlier this year as the Oklahoma-based oil and gas producer focuses on growing U.S. operations.
“I would like to express my sincere appreciation to all of our Canadian employees for their hard work and dedication over the past two decades in building an industry-leading heavy oil business,” said Devon CEO Dave Hager in a release.
“With this change in ownership, it is great to see our talented and innovative employee base transition to a top-tier company like Canadian Natural Resources.”
The sale includes assets that averaged 113,000 oil-equivalent barrels in the first quarter of this year.
“These high quality assets complement our existing asset base and provide further balance to our production profile, while not increasing the need for incremental market access out of western Canada, as it is already existing production,” said Canadian Natural President Tim McKay in a release.
Devon said proceeds from the sale will go toward paying down debt. The transaction is expected to close by the end of the second quarter.
J.P. Morgan Securities LLC and Goldman Sachs Group Inc. served as advisors to Devon.