Canadian pure strikes $461-million deal to take over Painted …

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Canadian Natural Resources Ltd. has struck a $461-million deal to buy Painted Pony Energy Ltd. as it looks to grow its position in the liquids-rich Montney natural gas region of northeastern B.C.

“This acquisition further strengthens Canadian Natural’s natural gas assets and production base in key operating areas and complements the company’s diversified portfolio,” Canadian Natural president Tim McKay said in a statement.

About Canadian
Canadians (French: Canadiens) are people identified with the country of Canada. This connection may be residential, legal, historical or cultural. For most Canadians, many (or all) of these connections exist and are collectively the source of their being Canadian.
Canada is a multilingual and multicultural society home to people of groups of many different ethnic, religious, and national origins, with the majority of the population made up of Old World immigrants and their descendants. Following the initial period of French and then the much larger British colonization, different waves (or peaks) of immigration and settlement of non-indigenous peoples took place over the course of nearly two centuries and continue today. Elements of Indigenous, French, British, and more recent immigrant customs, languages, and religions have combined to form the culture of Canada, and thus a Canadian identity. Canada has also been strongly influenced by its linguistic, geographic, and economic neighbour—the United States.
Canadian independence from the United Kingdom grew gradually over the course of many years following the formation of the Canadian Confederation in 1867. World War I and World War II in particular, gave rise to a desire among Canadians to have their country recognized as a fully-fledged sovereign state with a distinct citizenship. Legislative independence was established with the passage of the Statute of Westminster 1931, the Canadian Citizenship Act of 1946 took effect on January 1, 1947, and full sovereignty was achieved with the patriation of the constitution in 1982. Canada’s nationality law closely mirrored that of the United Kingdom. Legislation since the mid-20th century represents Canadians’ commitment to multilateralism and socioeconomic development.

Canadian Natural strikes $461-million deal to take over Painted …

About Natural
Nature, in the broadest sense, is the natural, physical, or material world or universe. “Nature” can refer to the phenomena of the physical world, and also to life in general. The study of nature is a large, if not the only, part of science. Although humans are part of nature, human activity is often understood as a separate category from other natural phenomena.The word nature is derived from the Latin word natura, or “essential qualities, innate disposition”, and in ancient times, literally meant “birth”. In ancient philosophy, Natura is mostly used as the Latin translation of the Greek word physis (φύσις), which originally related to the intrinsic characteristics that plants, animals, and other features of the world develop of their own accord.
The concept of nature as a whole, the physical universe, is one of several expansions of the original notion; it began with certain core applications of the word φύσις by pre-Socratic philosophers (though this word had a dynamic dimension then, especially for Heraclitus), and has steadily gained currency ever since. During the advent of modern scientific method in the last several centuries, nature became the passive reality, organized and moved by divine laws. With the Industrial revolution, nature increasingly became seen as the part of reality deprived from intentional intervention : it was hence considered as sacred by some traditions (Rousseau, American transcendentalism) or a mere decorum for divine providence or human history (Hegel, Marx). However, a vitalist vision of nature, closer to the presocratic one, got reborn at the same time, especially after Charles Darwin.Within the various uses of the word today, “nature” often refers to geology and wildlife. Nature can refer to the general realm of living plants and animals, and in some cases to the processes associated with inanimate objects—the way that particular types of things exist and change of their own accord, such as the weather and geology of the Earth. It is often taken to mean the “natural environment” or wilderness—wild animals, rocks, forest, and in general those things that have not been substantially altered by human intervention, or which persist despite human intervention. For example, manufactured objects and human interaction generally are not considered part of nature, unless qualified as, for example, “human nature” or “the whole of nature”. This more traditional concept of natural things that can still be found today implies a distinction between the natural and the artificial, with the artificial being understood as that which has been brought into being by a human consciousness or a human mind. Depending on the particular context, the term “natural” might also be distinguished from the unnatural or the supernatural.

“This transaction also allows us to further insulate against natural gas costs in our oilsands operations and has minimal impact on the company’s low overall corporate decline rate.”

The acquisition of Calgary-based Painted Pony company for $111 million in cash and the assumption of $350 million in debt is expected to close later this year.

Canadian Natural strikes $461-million deal to take over Painted …

Canadian Natural is best known as one of Canada’s largest oilsands and heavy oil producers, but it has been allocating funds to grow its natural gas output as well.

In a statement, Painted Pony said it is facing liquidity challenges caused by three years of weak natural gas prices and more recent declines in prices for the petroleum liquids produced with the gas.

It decided on a confidential process to enhance shareholder value, it said, and its board determined the corporate buyout offer of 69 cents per share by Canadian Natural was the best path forward.

Painted Pony’s shares have traded between 20 cents and 90 cents in the past year. They rose by as much as 16.9 per cent on Monday to match the offering price.

Separately, Canadian Natural said Painted Pony’s lands in northeastern B.C. are located near its similar operations and offer potential synergies in infrastructure and pipelines.

It said the assets produce about 270 million cubic feet per day of natural gas and 4,600 barrels per day of petroleum liquids.

By comparison, Canadian Natural produced 1.46 billion cubic feet per day of gas and 922,000 barrels per day of crude oil and liquids in the second quarter.

Analysts said the transaction was good for both companies but better for Canadian Natural, whose shares were little changed on Monday.

“Although we would consider the acquisition as immaterial to base operations today (four per cent of total production), the purchase is consistent with Canadian Natural’s history of opportunistic acquisitions along cyclical lows, adding significant future gas inventory,” National Bank analyst Travis Wood said in a report.

Analyst Chris MacCulloch of Desjardins pointed out the offer represents a 38 per cent premium above his 50 cents per share target price for Painted Pony, but investors may have mixed feeling about the deal.

“The acquisition certainly marks a disappointing conclusion for PONY shareholders after languishing for years under the crippling weight of elevated debt levels and depressed natural gas prices,” he said.

Painted Pony will hold a special meeting in September to vote on the deal which will require support of two-thirds of the shares.

It said holders of about 25 per cent of its shares, including its two largest shareholders, have agreed to support the transaction.