Canadian Natural Resources Limited CNQ concluded the previously announced agreement with Storm Resources Ltd. to acquire all of the latter's shares for C$960 million.

The acquired assets involve Calgary-based oil and gas explorer Storm's holdings in the liquid-rich Montney area of northeast British Columbia. Storm currently produces 136 million cubic feet a day of natural gas and 5,600 barrels a day of natural gas liquids in the area.

Storm's properties and production are within Canadian Natural's major activity areas. With the agreement, CNQ expands its existing footprint in the Montney natural gas formation in northern Alberta and British Columbia.

In August 2020, Canadian Natural entered a similar agreement to acquire Painted Pony Energy, another producer in the Montney area, to expand its Western Canada acreage. CNQ also assumed about C$350 million of Painted Pony's debt. Notably, the transaction allowed CNQ to insulate against natural gas costs in its oil-sand operations as natural gas prices came under pressure from reduced consumption amid the pandemic.

However, companies are withstanding their desire to grow by drilling additional wells despite the rising commodity prices. Major companies, including Canadian Natural, are considering acquisitions to some extent as investors don't want them to drill wells and bring large fuel volumes to production.

The latest acquisition offers production and infrastructure that complement Canadian Natural's existing assets in the area. The areas will provide an opportunity for synergies within CNQ's current diversified portfolio.

Headquartered in Calgary, AL, Canadian Natural is a leading independent energy company that engages in the exploration, development, and production of oil and natural gas.

Zacks Rank & Other Key Picks

Canadian Natural currently has a Zack Rank #2 (Buy). Investors interested in the energy sector might look at the following stocks with a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Occidental Petroleum Corporation OXY is an integrated oil and gas company with significant exploration and production exposure. OXY is also a producer of various basic chemicals, petrochemicals, polymers and specialty chemicals. As of 2020 end, OXY's preliminary worldwide proved reserves totaled 2.91 billion BOE compared with 3.9 billion BOE at the end of 2019.

In the past year, shares of Occidental Petroleum have surged 99% compared with the industry's growth of 96.6%. OXY's 2021 earnings are expected to soar 151.4% from the year-ago reported figure. OXY has also witnessed eight northward estimate revisions in the past 60 days. In the third quarter, OXY achieved its divestiture target of $10 billion by inking a deal to sell off its interest in two offshore Ghana assets for $750 million.