Canadian Natural Resources Ltd. agreed to acquire Montney Shale producer Painted Pony Energy Ltd. on Aug. 10, continuing consolidation among E&Ps in the gas play located in the Western Canadian Sedimentary Basin.

In a company release, Canadian Natural Resources, Canada’s largest oil and gas producer, said it will acquire smaller rival Painted Pony for about C$461 million (US$344.26 million) including debt. The offer includes the acquisition of all the issued and outstanding common shares of Painted Pony, for a cash consideration of C$0.69 per share, a premium of 17% to the closing price on the Toronto Stock Exchange on Aug. 7, according to the release.

The transaction follows the acquisition of Kelt Exploration Ltd.’s Montney position by ConocoPhillips Co. in an agreement announced late last month. At the time, analysts with Tudor, Pickering, Holt & Co. (TPH) said the move by ConocoPhillips delivers “much awaited Montney consolidation” while also shining a light on discounted valuations in the shale play.

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