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Wednesday, February 19, 2014

CORRECTED-Canadian Natural to purchase some of Devon's Canadian gas assets, (NYSE: DVN)

Canadian Natural Resources Ltd , the country's largest independent oil producer, said on Wednesday it would purchase some of Devon Energy Corp's liquids-rich natural gas assets in Canada for $3.13 billion.The deal, which will immediately add to Canadian Natural's earnings and cash flow, excludes Devon's Horn River assets in northern British Columbia and heavy oil properties in Alberta.Canadian Natural said the acquired royalty revenue would either be folded into a new vehicle to provide steady cash flow to existing shareholders or be sold off later this year.The royalty revenue from the deal is expected to earn Canadian Natural about $75 million in cash flow during 2014. The cash flow from the combined portfolio is expected to be between $140 million and $150 million this year.

Devon Energy Corporation (Devon) is an independent energy company engaged primarily in the exploration, development and production of oil, natural gas and natural gas liquids (NGLs). Shares of DVN traded higher by 1.39% or $0.86/share to $62.91. In the past year, the shares have traded as low as $50.81 and as high as $66.92. On average, 3400290 shares of DVN exchange hands on a given day and today's volume is recorded at 5137014.