Canadian Natural Resources has raised $200million after selling off a non-core asset.
The firm sold its non-core ownership interest in the Cold Lake Pipeline, to Inter Pipeline. The transaction consists of the monetization of the Company’s entire 15% ownership interest of Cold Lake Pipeline Ltd. and its 14.7% ownership interest in the Cold Lake Limited Partnership.
Canadian Natural expects to record an after-tax gain on disposition of approximately $D200million, based upon preliminary value allocations.
A company spokesperson said: “The Cold Lake Pipeline equity ownership was a non-core asset for Canadian Natural and monetization of the asset brings forward significant value for the Company’s shareholders, not previously recognized, and does not alter the Company’s rights, pricing and access to the Cold Lake Pipeline itself. After completion of the sale, Canadian Natural will retain access to the Cold Lake Pipeline system for portions of the Company’s crude oil volumes.”
Canadian Natural retained BMO Capital Markets to act as financial advisor for the transaction.
Canadian Natural is a senior oil and natural gas production company, with continuing operations in its core areas located in Western Canada, the U.K. portion of the North Sea and Offshore Africa.
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