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4 Pages

CNRL sells royalty positions in Western Canada to PrairieSky Royalty for US$1.35 billion


CNRL sells royalty positions in Western Canada to PrairieSky Royalty for US$1.35 billion

Report summary

On 9 November 2015, Canadian Natural Resources Limited (CNRL) and PrairieSky Royalty Limited announced an agreement whereby PrairieSky would acquire 5.4 million acres of CNRL's royalty lands. In return, CNRL would receive consideration of Cdn$1.8 billion (US$1.4 billion), consisting of Cdn$680 million cash and Cdn $1.2 billion in PrairieSky stock which equates to 44.4 million shares at a deemed price of Cdn $25.20/share. After a wave of royalty land spin-offs since 2014, PrairieSky has emerged as the largest non-crown royalty acreage owner in Western Canada.

What's included?

This report includes 1 file(s)

  • CNRL sells royalty positions in Western Canada to PrairieSky Royalty for US$1.35 billion PDF - 275.75 KB 4 Pages, 1 Tables, 1 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
  • Strategic rationale
    • Canadian Natural Resources
    • PrairieSky Royalty

In this report there are 2 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Strategic rationale
    • CNRL net-debt outlook under various scenarios
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