EXHIBIT 99.1
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P R E S S R E L E A S E
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[PHOTOGRAPHS OMITTED] [LOGO OMITTED]
THE PREMIUM VALUE, CANADIAN NATURAL
DEFINED GROWTH, INDEPENDENT
NEWS RELEASE
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CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES
THE ACQUISITION OF ANADARKO CANADA CORPORATION
CALGARY, ALBERTA -- SEPTEMBER 14, 2006 -- FOR IMMEDIATE RELEASE
Canadian Natural Resources Limited ("Canadian Natural" or the "Company")
announces entering into an agreement relating to the acquisition of Anadarko
Canada Corporation ("ACC"), a subsidiary of Anadarko Petroleum Corporation, for
aggregate consideration of US$4.075 billion. ACC's land and production base are
all located in Western Canada and are high quality, concentrated natural gas
weighted assets with strong netbacks and a long reserve life. The current
production, before royalties, from the working interests acquired by Canadian
Natural, is approximately 358 million cubic feet per day of natural gas and
9,300 barrels per day of crude oil and NGLs. The assets also include
approximately 1.5 million net undeveloped acres and key strategic facilities in
the high growth areas of Northeast British Columbia and Northwest Alberta.
In commenting on the acquisition, Canadian Natural's President and Chief
Operating Officer, Steve Laut stated, "This acquisition further strengthens
Canadian Natural's asset and production base in key operating areas
specifically, in relation to natural gas. This demonstrates the strength of the
Company's balance sheet and our confidence in our ability to execute our
defined plan, including Phase I of the Horizon Oil Sands Project, which remains
on schedule and on track to budget targets."
The acquisition fits Canadian Natural's strategy of dominating its core areas
and related infrastructure as the majority of the acquired properties are
operated and located in or adjacent to Canadian Natural's core areas. The
properties acquired strengthen Canadian Natural's long term Canadian natural
gas strategy by significantly increasing its land and facilities infrastructure
in key areas in Northwest Alberta and Northeast British Columbia that are
tightly held and very competitive. These are also areas where Canadian Natural
has a strong understanding of the geology and production performance. The ACC
assets contain significant upside, with over 1,500 new drilling locations
identified. The key infrastructure acquired will allow the low cost development
of not only ACC lands but also adjacent Canadian Natural lands. As a result
Canadian Natural expects to achieve operating cost synergies with the full
integration of both the ACC infrastructure and Canadian Natural infrastructure.
Additional acreage in the Foothills further enhances the Company's long term
deep natural gas growth plans.
The following table summarizes the forecasted daily production, reserves and
undeveloped land of Canadian Natural after giving effect to the acquisition,
assuming an October 1, 2006 control date:
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REVISED 2006
ANNUAL
CNQ ACC GUIDANCE
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Daily Production, before royalties (1)
Natural Gas (mmcf/d) 1,422 - 1,450 358 1,510 - 1,540
Crude oil and NGLS (mbbl/d) 327 - 350 9 330 - 351
Barrels of oil equivalent (mboe/d) 564 - 592 69 582 - 608
Proved Reserves (2)
Natural Gas (bcf) 3,490 1,561
Crude oil and NGLS (mmbbl) 1,223 48
Barrels of oil equivalent (mmboe) 1,804 308
Core areas undeveloped land
(millions of net acres) (3) 11.0 1.5
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(1) Canadian Natural production range based on current 2006 annual guidance.
(2) Before royalties as at December 31, 2005. CNQ reserves are as filed in its
Annual Information Form and ACC reserves are as filed in its Form-10K,
adjusted for royalties.
(3) Canadian Natural Western Canadian acreage as at June 30, 2006, ACC acreage
estimated as at August 31, 2006.
PAGE 2
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The ACC acquisition is positive for Canadian Natural shareholders with cash
flow increasing by $0.24 per share in 2006 and $0.99 per share in 2007 on a
strip pricing basis. The earnings impact is expected to be neutral. Based upon
current crude oil and natural gas forward strip pricing, the Company estimates
its 2006 cash flow to be between $4.9 billion to $5.3 billion.
Canadian Natural's balance sheet has significant strength and flexibility to
accommodate this acquisition, however, the debt to book capitalization level
will be near the top end of internal targets. To ensure balance sheet strength
going forward Canadian Natural has hedged a significant portion of the
Company's natural gas and crude oil production for 2007 and 2008 at prices that
protect investment returns. The Company will also consider the divestiture of
non strategic and non core properties to gain additional balance sheet
flexibility.
In addition to the strategic location of the high quality assets that ACC
brings to Canadian Natural, it will allow the Company to further high grade its
project inventory and significantly reduce capital expenditures in the current
highly inflationary service market. Canadian Natural expects, as a result of
the acquisition, to reduce its 2007 conventional crude oil and natural gas
capital budget by between $0.8 billion and $1.0 billion, versus 2006 capital
spending while maintaining the capital expenditures to complete Phase I of the
Horizon Oil Sands Project.
Canadian Natural has retained Scotia Waterous to act as financial advisors for
the acquisition. In addition, Citigroup Global Markets Inc, RBC Capital
Markets, CIBC Capital Markets, and BMO Capital Markets have been retained as
strategic advisors on the acquisition.
The transaction is subject to normal closing conditions and governmental
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 West Africa.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this document or incorporated herein by reference may
constitute "forward-looking statements" within the meaning of the United States
Private Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such because of the context of the statements
including words such as the Company "believes", "anticipates", "expects",
"plans", "estimates" or words of a similar nature.
The forward-looking statements are based on current expectations and are
subject to known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company, or
industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Such factors include, among others: the general economic and
business conditions which will, among other things, impact demand for and
market prices of the Company's products; the foreign currency exchange rates;
the economic conditions in the countries and regions in which the Company
conducts business; the political uncertainty, including actions of or against
terrorists, insurgent groups or other conflict including conflict between
states; the industry capacity; the ability of the Company to implement its
business strategy, including exploration and development activities; the
ability of the Company to complete its capital programs; the ability of the
Company to transport its products to market; potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures; the availability and cost of financing; the success of
exploration and development activities; the production levels; the uncertainty
of reserve estimates; the actions by governmental authorities; the government
regulations and the expenditures required to comply with them (especially
safety and environmental laws and regulations); the site restoration costs; and
other circumstances affecting revenues and expenses. The impact of any one
factor on a particular forward-looking statement is not determinable with
certainty as such factors are interdependent upon other factors, and
management's course of action would depend upon its assessment of the future
considering all information then available.
Statements relating to "reserves" are deemed to be forward-looking statements,
as they involve the implied assessment, based on certain estimates and
assumptions that the reserves described can be profitably produced in the
future.
Readers are cautioned that the foregoing list of important factors is not
exhaustive. Although the Company believes that the expectations conveyed by the
forward-looking statements are reasonable based on information available to it
on the date such forward-looking statements are made, no assurances can be
given as to future results, levels of activity and achievements. All subsequent
forward-looking statements, whether written or oral, attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements. The Company assumes no obligation to
update forward-looking statements should circumstances or management's
estimates or opinions change.
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CONFERENCE CALL
A conference call will be held at 7:00 a.m. Mountain Daylight Time, 9:00 a.m.
Eastern Daylight Time on Thursday, September 14, 2006. Slides relating to the
acquisition may be found at WWW.CNRL.COM prior to the conference call. The
North American conference call number is 1-877-461-2814 and the outside North
American conference call number is 001-416-695-6120. Please call in about 10
minutes before the starting time in order to be patched into the call. The
conference call will also be broadcast live on the internet and may be accessed
through the Canadian Natural website at WWW.CNRL.COM.
A taped rebroadcast will be available until 6:00 p.m. Mountain Daylight Time
Thursday, September 21, 2006. To access the postview in North America, dial
1-888-509-0081. Those outside of North America, dial 001-416-695-5275. The
passcode to use is 630621.
WEBCAST
This call is being webcast by Vcall and can be accessed on Canadian Natural's
website at www.cnrl.com/investor_info/calendar.html.
The webcast is also being distributed over PrecisionIR's Investor Distribution
Network to both institutional and individual investors. Investors can listen to
the call through www.vcall.com or by visiting any of the investor sites in
PrecisionIR's Individual Investor Network.
For further information, please contact:
CANADIAN NATURAL RESOURCES LIMITED
2500, 855 - 2nd Street S.W.
Calgary, Alberta
T2P 4J8
ALLAN P. MARKIN DOUGLAS A. PROLL
TELEPHONE: (403) 514-7777 Chairman Chief Financial Officer and
FACSIMILE: (403) 517-7370 Senior Vice-President, Finance
EMAIL: ir@cnrl.com JOHN G. LANGILLE
WEBSITE: www.cnrl.com Vice-Chairman COREY B. BIEBER
Vice-President,
TRADING SYMBOL - CNQ STEVE W. LAUT Investor Relations
Toronto Stock Exchange President and
New York Stock Exchange Chief Operating Officer