U.S. oil and gas exploration and production company Devon Energy Corp. has entered into an agreement to sell its Canada-based assets to peer Canadian Natural Resources.
Canadian Natural Resources agreed to pay C$3.78 billion ($2.79 billion) in cash to buy Devon Canada, part of Devon Energy. Proceeds from the sale will be used to reduce Devon Energy’s credit.
With the deal, Canadian Natural Resources will gain access to Devon Canada’s heavy oil sites located in Western Canada, which comprise 1.50 million acres of land, of which 1.00 million acres are undeveloped.
The transaction is expected to close by the end of the second quarter of 2019, subject to the usual closing conditions and regulatory approvals.