Canada's Strathcona makes $2-billion upstream asset sale

Canada’s Strathcona makes $2 billion in upstream asset sales

Canada

CALGARY, May 15, 2025 – Canada’s Strathcona Resources is selling its Montney assets for USD 2 billion in a strategic move to concentrate on thermal heavy oil, the company said on Wednesday.

In a separate transaxtion, the company will acquire the Hardisty Rail Terminal in southern Alberta.

The company will divest three Montney assets for a total of CAD 2.84 billion (USD 2 billion): the Kakwa asset to ARC Resources for CAD 1.695 billion (USD 1.25 billion), the Grande Prairie asset for CAD 850 million (USD 625 million), and the Groundbirch asset to Tourmaline Oil for CAD 291.5 million (USD 215 million) in shares. Following the sales, Strathcona will produce 120,000 barrels per day of oil, including 95,000 barrels per day of thermal crude.

The Montney play lies across the BC-Alberta border.

In Q1 2025, Strathcona also signed a deal to acquire the Hardisty Rail Terminal for CAD 45 million (USD 33 million), closing the purchase in early Q2. The terminal, Canada’s largest crude-by-rail facility, has a capacity of 262,000 barrels per day and is linked to the Hardisty Diluent Recovery Unit, enhancing shipping economics over pipelines. All transactions are scheduled to close in Q2 and Q3 2025, pending regulatory approvals.

“These transactions are consistent with our strategy of focusing on long-life, low-decline thermal heavy oil assets,” Strathcona chief executive officer Adam Waterous said.

Strathcona Resources is a Calgary-based upstream company operating across Western Canada. It specialises in the development of thermal heavy oil projects and conventional oilfields and is now positioned as a pure-play heavy oil producer with a production base focused on thermal extraction.

Photo courtesy of Strathcona Resources