Canadian Pure Assets Ltd. has signed a deal to purchase Chevron Canada Ltd.’s pursuits within the Athabasca Oil Sands Challenge and Duvernay shale for US$6.5 billion.
“These belongings are an important match for Canadian Pure and can permit us to additional implement our sturdy working tradition and drive vital worth for shareholders,” Canadian Pure president Scott Stauth stated in an announcement Monday.
“Each acquisitions present Canadian Pure with rapid free money move era and additional alternatives to drive long run shareholder worth.”
The deal consists of Chevron’s 20 per cent curiosity within the Athabasca Oil Sands Challenge, which incorporates 20 per cent of the Muskeg River and Jackpine mines, the Scotford Upgrader and the Quest Carbon Seize and Storage facility.
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The transaction will carry Canadian Pure’s whole present working curiosity within the operations to 90 per cent.
Canadian Pure may even purchase Chevron’s 70 per cent operated working curiosity of sunshine crude oil and liquids wealthy belongings within the Duvernay play in Alberta.
The all-cash settlement has an efficient date of Sept. 1, 2024, and is anticipated to shut through the fourth quarter of 2024, topic to regulatory approvals and different customary closing situations.
As well as, Canadian Pure says it is going to enhance its quarterly dividend to shareholders by seven per cent to 56.25 cents per share beginning with its subsequent common fee in January 2025.
© 2024 The Canadian Press
