Canadian Natural Resources Limited Announces The Acquisition of Certain Canadian Assets of Devon Canada

Canadian Natural Resources Limited Announces The Acquisition of Certain 
Canadian Assets of Devon Canada 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Canadian Natural Resources Limited 
TSX SYMBOL:  CNQ
NYSE SYMBOL:  CNQ 
FEBRUARY 19, 2014 
Canadian Natural Resources Limited Announces The Acquisition of Certain
Canadian Assets of Devon Canada 
CALGARY, ALBERTA--(Marketwired - Feb. 19, 2014) - Canadian Natural Resources
Limited (TSX:CNQ)(NYSE:CNQ) ("Canadian Natural" or the
"Company") announces entering into an agreement relating to the
acquisition of Devon Canada's Canadian conventional assets, excluding Horn
River and the heavy oil properties, for an aggregate cash consideration of
$3.125 billion, effective January 1, 2014, with a targeted closing date of
April 1, 2014. The acquired lands and production base are all located in
Western Canada in areas adjacent or proximal to Canadian Natural's current
operations and are high quality, concentrated liquids-rich natural gas weighted
assets, with additional light crude oil exposure. The current estimated
production, before royalties, from the acquired properties is approximately 383
mmcf/d of natural gas, 10,800 bbl/d of light crude oil and 12,000 bbl/d of NGLs
and is approximately 72% operated. Along with the production are associated key
strategic facilities including 6 major owned and operated natural gas plants,
with gross processing capacity in excess of 1,000 mmcf/d, and 4 major owned and
operated oil batteries. Finally, the assets also include a high quality land
base of approximately 2.2 million net acres of undeveloped land and 2.7 million
net acres of royalty and fee simple lands. Company Gross proved reserves
(excluding the royalty lands) associated with the acquisition, as evaluated by
an independent qualified reserves evaluator as at December 31, 2013 using
forecast prices and costs, were 272.2 million BOE. 
The acquired asset package includes a royalty revenue stream which is targeted
to earn approximately $75 million in cash flow during 2014. Canadian Natural is
reviewing the options to combine the acquired royalty revenue stream with its
own royalty revenue portfolio for either the creation of a new vehicle to
provide steady cash flow to current shareholders or monetization through a sale
package later in 2014. The targeted cash flow from the combined royalty revenue
streams is expected to be between $140 million and $150 million in 2014.  
Commenting on the acquisition, Canadian Natural's President Steve Laut
stated, "This acquisition fits our strategy of opportunistically adding to
our existing core areas, where we can provide immediate value, with the
opportunity to add value in the future. The acquired assets are largely
operated, as are the owned facilities and infrastructure; and are a very good
fit with Canadian Natural's existing assets and infrastructure. The
combined assets and infrastructure provide synergies to more effectively and
efficiently operate once fully integrated.  
Additionally, this acquisition provides significant upside in liquids-rich
natural gas and light crude oil properties where we already operate and have a
strong understanding of the geology and operating performance. The acquisition
provides immediate value to shareholders through production and cash flow, is
accretive in earnings, cash flow and returns, and maintains our strong
financial capacity to effectively execute our well defined plan." 
The following table summarizes key metrics included in the acquisition
properties: 
/T/ 
Forecast 
Proved                  current
(Before Royalties)                     reserves(1)               production 
--------------------------------------------------
Natural gas                              1,130 bcf               383 mmcf/d
Natural gas liquids               47.2 million bbl             12,000 bbl/d
Light crude oil                   36.8 million bbl             10,800 bbl/d
BOE                              272.2 million BOE              86,633 BOED 
----------------                                                            
(1)   Company Gross proved reserves using forecast pricing and costs, as     
evaluated by Deloitte, an independent qualified reserves evaluator     
retained by Devon Canada as at December 31, 2013.                      
/T/ 
Approximately 900 Devon Canada employees will be joining the Canadian Natural
team, comprised of both field and head office personnel. 
Upon completion of the acquisition, Canadian Natural will maintain its strong
financial position with sufficient balance sheet flexibility to accommodate the
acquisition. In addition, the Company has negotiated an additional $1 billion
committed term facility with the Bank of Montreal, which is available upon
closing. Balance sheet metrics, based upon current strip pricing, are targeted
to exit 2014 with debt to book capitalization at approximately 30-31% (at low
end of internal target) and debt to EBITDA at approximately 1.05-1.15x (below
internal target range).  
The transaction is subject to normal closing conditions and government
approval. 
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. 
CONFERENCE CALL 
A conference call will be held at 7:00 a.m. Mountain Time, 9:00 a.m. Eastern
Time on Wednesday, February 19, 2014. The North American conference call number
is 1-800-766-6630 and the outside North American conference call number is
001-416-340-8527. Please call in about 15 minutes before the starting time in
order to be patched into the call.  
A taped rebroadcast will be available until 6:00 p.m. Mountain Time, Wednesday,
February 26, 2014. To access the rebroadcast in North America, dial
1-800-408-3053. Those outside of North America, dial 001-905-694-9451. The pass
code to use is 9119434. 
WEBCAST  
This call is being webcast and can be accessed on Canadian Natural's
website at www.cnrl.com. Presentation slides will be available on Canadian
Natural's website in PDF format shortly before the live conference call
webcast. 
Certain information regarding the Company contained herein may constitute
forward-looking statements under applicable securities laws. Such statements,
including but not limited to statements regarding reserves, forecast current
production,  cash flow from royalty revenue assets and future plans related
thereto, are subject to known or unknown risks and uncertainties that may cause
actual results to differ materially from those anticipated or implied in the
forward-looking statements. Refer to our website for complete forward-looking
statements www.cnrl.com 
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FOR FURTHER INFORMATION PLEASE CONTACT: 
Steve W. Laut
President
or
Corey B. Bieber
Chief Financial Officer & Senior Vice-President, Finance
or
Douglas A. Proll
Executive Vice-President
or
Canadian Natural Resources Limited
2500, 855 - 2nd Street S.W.
Calgary, Alberta, T2P 4J8
Telephone: (403) 514-7777
(403) 514-7888
ir@cnrl.com 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  TMN 
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-0- Feb/19/2014 10:00 GMT
 
 
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