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Actionable news in CNQ: CANADIAN NATURAL RESOURCES LIMITED,

PrairieSky Agrees to Acquire Canadian Natural Royalty Assets

PrairieSky Royalty Ltd., the company spun off by Encana Corp. last year, agreed to acquire royalty assets from Canadian Natural Resources Ltd. for C$1.8 billion ($1.4 billion).

The purchase will consist of C$680 million in cash and about 44.4 million PrairieSky shares at C$25.20 apiece, the companies said Monday in a statement. It brings together “two of the largest fee simple mineral title and royalty positions in Western Canada,” the Calgary-based companies said. Royalty lands generate revenue from drilling by other companies.

Canadian Natural is among energy companies shelving projects and offloading assets to withstand the oil slump. The company has long been considering selling or spinning off so-called royalty lands that generate revenue from drilling by other producers. An all-cash deal would have been more advantageous, according to Desjardins Capital Markets.

“This was one of the ‘easy levers’ the company had available to...


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