Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, August 21, 2020

Article Excerpt

CANADIAN NATURAL RESOURCES LTD., $25.55, symbol CNQ on Toronto, is one of the largest oil and gas producers in Western Canada, where its 100%-owned Horizon oil sands project is located. It also has operations in the North Sea and off the coast of West Africa. Canadian Natural’s product mix is about 79% oil and 21% natural gas. The company is best known as one of Canada’s largest oils sands and heavy oil producers, but it now aims to expand its natural gas output. On August 10, 2020, Canadian Natural announced that it would buy Painted Pony Energy (symbol PONY on Toronto) for $111.0 million, or $0.69 a share. It will also assume $350.0 million in debt for a total purchase price of $463.0 million. Painted Pony produces approximately 270 million cubic feet per day of natural gas and 4,600 barrels per day of oil. To put that into perspective, Canadian Natural produces an average of 1.46 billion cubic feet of gas and 921,895…