Chevron Canada to sell assets to Canadian Natural Resources for $6.5 billion in cash

By Ciara Linnane and James Rogers

The deal is expected to close in the fourth quarter

Chevron Canada Ltd, a unit of Chevron Corp., said Monday it has agreed to sell a 20% non-operated interest in the Athabasca oil sands Project, a 70% operated interest in the Duvernay shale, and related interests, all located in Alberta, Canada, to Canadian Natural Resources Ltd, in an all-cash deal valued at $6.5 billion.

The deal is expected to close in the fourth quarter. The assets involved contributed 84,000 barrels of oil equivalent a day of production, net of royalties, to Chevron (CVX) in 2023. The deal is part of the oil giant's plan to divest $10 billion to $15 billion in assets by 2028 to optimize its global energy portfolio.

Related: 14 energy stocks whose ample cash flow might benefit shareholders

Chevron's stock was up 1.1% premarket. Shares of Chevron are up 1.1% in 2024, compared with the S&P 500 index's SPX gain of 20.6%.

In August Chevron reported second-quarter revenue that topped Wall Street's expectations, but weaker-than-expected profit.

Related: Chevron to move to Texas from California amid another tough quarter for its refining business

Canadian Natural Resources shares (CNQ) are up 2.8% premarket. The stock is up 8.5% this year.

-Ciara Linnane -James Rogers

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10-07-24 0801ET

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