Canadian Natural Resources to acquire Storm Resources for $6.28 per share

Source: Canadian Natural Resources

Canadian Natural Resources Ltd. (CNRL) says it has reached a deal to acquire Calgary-based oil and gas explorer Storm Resources Ltd. for $6.28 per share, a price that pegs Storm's enterprise value at $960 million.

The purchase price represents an all-time high share price for Storm, as well as a premium of 10 per cent to Storm's 10-day volume-weighted average trading price on the Toronto Stock Exchange as of the close of markets on Tuesday.

The deal will give CNRL access to Storm's existing production and infrastructure in the Montney area of northeast British Columbia, where CNRL already has operations.

CNRL says Storm's current production in the area is approximately 136 million cubic feet per day of natural gas and 5,600 barrels per day of natural gas liquids.

As part of the proposed deal, CNRL will assume Storm's total debt of approximately $186 million. The deal is expected to close in December.

In August 2020, CNRL acquired another Montney producer, Painted Pony Energy Ltd., for $469 million.

© 2021 The Canadian Press

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.