Canadian Natural Acquires Painted Pony Energy in Cash Transaction

Updated 11 months 2 weeks ago

Canadian Natural Resources has entered into a definitive agreement to acquired Painted Pony Energy for CAD 0.69 per share in cash, assuming a total debt of CAD 350 million. Painted Pony's current production, before royalties, is 270 million cubic feet per day and 4,600 barrels of NGLs. Assets include properties in the northeast British Columbia areas of Blair, Daiber, Kobes, and Townsend. Painted Pony's board decided to sell after determining it could not fund planned development activities. Painted Pony Petroleum was established in 1999 and renamed Painted Pony Energy in 2017.

Painted Pony's board has unanimously recommended the transaction. Canadian Natural will pay a CAD 20 million non-completion fee if the deal does not go through. TD Securities and RBC Capital Markets acted as co-lead advisors. The deal closed in October 2020.

Tim McKay, Canadian Natural President

This transaction also allows us to further insulate against natural gas costs in our oils sands operations and has minimal impact on the Company’s low overall corporate decline rate.