Canadian Natural Resources Ltd. is acquiring conventional oil and gas assets in western Canada from Devon Canada for $3.125 billion in cash, the company announced Wednesday.
The acquired lands are all next to or close to Canadian Natural's current operations. The deal will add immediately to CNRL's production, cash flow and earnings.
The Calgary-based company says the assets it's buying have proved reserves of 1,130 billion cubic feet of natural gas, 47 million barrels of natural gas liquids and 37 million barrels of light crude oil.
The deal also includes six natural gas plants and other infrastructure.
As well. CNRL will acquire 890,000 hectares of undeveloped land and 1.1 million hectares of royalty lands from Devon.
"This acquisition fits our strategy of opportunistically adding to our existing core areas, where we can provide immediate value, with the opportunity to add value in the future," said Canadian Natural president Steve Laut in a release.
"The acquired assets are largely operated, as are the owned facilities and infrastructure; and are a very good fit with Canadian Natural's existing assets and infrastructure."
The deal with Devon comes just a month after CNRL abandoned plans to sell some of its gas assets because of low prices.
About 900 Devon Canada field and head office employees will join Canadian Natural. The deal is expected to close April 1.
Canadian Natural shares were up $1.82 to $41 in midday TSX trading Wednesday.