Chevron Sells Canadian Oil Sands Stake to Canadian Natural Resources for $6.5 Billion

Chevron Corp. has agreed to sell its stake in Canadian oil sands and shale assets to Canadian Natural Resources Ltd. for $6.5 billion. The deal involves Chevron's 20% interest in the Athabasca Oil Sands Project and a 70% holding in the Duvernay shale. This transaction aligns with Chevron's strategy of divesting from the Canadian market to focus on growth opportunities in other prominent regions, including the Permian Basin in the U.S. and the Tengiz field in Kazakhstan.

The sale to Canadian Natural Resources is reflective of a larger trend seen among major international oil companies. Many have been pulling out of the Canadian oil sands, a move that invariably places more control in the hands of local producers. Chevron's exit follows similar departures by other global energy giants over recent years.

Canadian Natural Resources, a leader in the Canadian energy landscape, plans to finance the purchase with a $4 billion term loan from The Bank of Nova Scotia and Royal Bank of Canada. In conjunction with this acquisition, the company is also increasing its dividend by 7%, underlining its confidence in the profitability and long-term benefits of this strategic buy.

Chevron's current stock price stands at $151.57, reflecting its ongoing strategic adjustments and market perceptions around its refocused growth initiative. Meanwhile, competitors Hess Corporation and ConocoPhillips have stock prices of $140.93 and $114.85, respectively.