Canadian Natural Acquires Chevron's Alberta Assets and Boosts Dividend
- Canadian Natural Resources Limited has entered into an agreement to acquire Chevron's assets, including interests in the Athabasca Oil Sands Project and the Duvernay play.
- The acquisition is projected to generate approximately 60,000 BOE/d in production by 2025, enhancing the company's cash flow.
- The Board of Directors has increased the quarterly dividend by 7% to $0.5625 per share, demonstrating a commitment to shareholder returns.
In October 2024, Canadian Natural Resources Limited, based in Calgary, Alberta, announced its agreement to acquire Chevron Canada Limited's assets, which include a 20% interest in the Athabasca Oil Sands Project and a 70% operated working interest in the Duvernay play. This acquisition is subject to regulatory approvals and is expected to enhance Canadian Natural's production capacity, targeting an average of 60,000 BOE/d in 2025. The company anticipates significant free cash flow generation from these assets, which will support its financial strategy. Concurrently, the Board of Directors has revised the free cash flow allocation policy to ensure substantial returns to shareholders while maintaining a robust balance sheet. The new policy allocates 60% of free cash flow to shareholder returns and 40% to the balance sheet until net debt reaches $15 billion. Following the acquisition, the quarterly dividend will increase by 7% to $0.5625 per share, reflecting the company's strong financial position and commitment to shareholder value. This strategic move is expected to provide additional free cash flow returns to shareholders, exceeding previous targets under the former allocation policy. Overall, the acquisition and policy changes signify Canadian Natural's focus on growth and shareholder returns in a competitive energy market.