Canadian Natural Resources Limited said on Monday it is buying Painted Pony Energy Ltd for $461 million.
The deal includes Painted Pony's assets of Blair, Daiber, Kobes and Townsend in northeast B.C., which together produce about 270 million cubic feet per day of natural gas and 4,600 barrels per day of natural gas liquids.
“This acquisition further strengthens Canadian Natural’s natural gas assets and production base in key operating areas and complements the company’s diversified portfolio,” said Tim McKay, Canadian Natural’s president. “This transaction also allows us to further insulate against natural gas costs in our oilsands operations and has minimal impact on the company’s low overall corporate decline rate. We look forward to working together with the staff currently employed by Painted Pony.”
CNRL will also assume Painted Pony’s debt of $350 million. According to the terms, Canadian Natural Resources will acquire Painted Pony's outstanding shares for 69 cents per share in cash.
Painted Pony will seek approval of the deal by its shareholders at a special meeting expected to be held in September 2020.
The transaction is expected to close in late in the third quarter or early in the fourth quarter of 2020.