(Adds stock details, background and analyst comment)
CALGARY Dec 12 Canadian Natural Resources Ltd
said on Monday it will sell its stake in the Cold Lake
pipeline to Inter Pipeline Ltd for C$527.5 million in
cash and stock, but will maintain access to the route to move
Canadian Natural is expecting to move through the pipeline
crude from its 40,000-barrel-per-day Kirby North thermal
project, which it said last month would be re-initiated.
Canadian Natural (CNQ) had been the first oil sands producer
to re-sanction a deferred major project since the global oil
price slump began in 2014, a sign that relief is coming to the
"While it is unusual for CNQ to sell mid-stream assets, its
interest in the Cold Lake Pipeline was non-core, while egress
for Kirby North has been preserved," Royal Bank of Canada
analyst Greg Pardy said in a note.
Canadian Natural said it will receive C$350 million in cash
and 6.4 million common shares of Inter Pipeline at an ascribed
value of $177.5 million for the sale of the pipeline.
"Canadian Natural expects to record an after-tax gain on
disposition of approximately $200 million," the company said.
The company's shares were up 1.8 percent at C$44.78 in early
afternoon trading on the Toronto Stock Exchange.
($1 = 1.3125 Canadian dollars)
(Reporting by Bengaluru newsroom and Ethan Lou in Calgary,
Alberta; Editing by Alan Crosby)