Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Chevron to sell assets worth $6.5 billion to Canadian Natural Resources

admin by admin
October 7, 2024
in Stock
0
Chevron to sell assets worth $6.5 billion to Canadian Natural Resources
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter

By Seher Dareen

(Reuters) -Chevron is selling its assets in Athabasca Oil (OTC:ATHOF) Sands and Duvernay Shale to Canadian Natural (NYSE:CNQ) Resources for $6.5 billion, the oil giant said on Monday as it puts in motion its divestiture plan.

The all-cash transaction, which is expected to close in the fourth quarter, is a part of its strategy to divest $10 billion to $15 billion of assets by 2028.

The assets, located in Alberta, Canada, contributed 84,000 barrels of oil equivalent per day (boepd) of production to Chevron (NYSE:CVX) in 2023.

The Duvernay is one of Canada’s top shale plays and has seen eight deals worth $2.9 billion in the last three years, Wood Mackenzie said in January.

After the deal, Canadian Natural will own 90% of the Athabasca Oil Sands project, while Shell (LON:SHEL) owns the rest.

The company said along with the Duvernay assets, it would add 122,500 boepd of its target production in 2025.

It also raised its quarterly dividend by 7% to 56.25 Canadian cents per share, payable in January 2025, with its finance chief Mark Stainthorpe saying the deal will add to cash flow and earnings immediately.

Canadian Natural had a long-term debt of C$9.33 billion as of June 30.

Chevron, meanwhile, is looking to spend more than 75% of its production budget on U.S. shale basins, the Gulf of Mexico, the Eastern Mediterranean, Guyana, Australia and Kazakhstan.

It had recently cleared an FTC review on its $53 billion deal for Hess (NYSE:HES), but will need to clear a challenge by Exxon (NYSE:XOM) and CNOOC (NYSE:CEO), Hess’s partners in a Guyana joint venture. A three-judge arbitration panel is set to consider the case next May.

“This transaction ..helps clean up the portfolio ahead of the pending Hess closing,” analysts at RBC Capital Markets said in a note, adding that they expected free cash flow to improve into 2025.

Shares of Chevron were up 1.1% before the bell in a higher oil-price environment.

This post appeared first on investing.com

Previous Post

Wall Street futures slip as markets reprice rate path ahead of busy week

Next Post

CPI data and FOMC minutes to guide markets next week

admin

admin

Next Post
CPI data and FOMC minutes to guide markets next week

CPI data and FOMC minutes to guide markets next week

Trending News

Netflix blows past estimates: 18.9 million new subscribers, stock jumps 14%

Netflix blows past estimates: 18.9 million new subscribers, stock jumps 14%

January 22, 2025
Why Mercedes is ahead of Tesla in driver-assistance features

Why Mercedes is ahead of Tesla in driver-assistance features

February 6, 2025
Errol Musk-backed ‘Musk It’ meme coin eyes $200M funding

Errol Musk-backed ‘Musk It’ meme coin eyes $200M funding

January 31, 2025
Subscribe to Insightful Word


    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025
    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    August 28, 2025
    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    Urban Outfitters stock slides 4% despite strong quarter on cautious outlook

    August 28, 2025

    Recent News

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in

    August 28, 2025
    SentinelOne stock price forecast ahead of earnings: buy or sell?

    SentinelOne stock price forecast ahead of earnings: buy or sell?

    August 28, 2025

    Latest News

    • Nvidia shares fall on China sales exclusion, weaker data center sales: analysts weigh in
    • SentinelOne stock price forecast ahead of earnings: buy or sell?
    • Tesla wants millions of robotaxis by 2025, but will Waymo win the long game?

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.