Chevron Corporation (NYSE:CVX) and Canadian Natural Resources Limited (NYSE:CNQ) shares are trading higher premarket on Monday. Chevron's subsidiary penned a deal to sell a stake in several projects and assets to Canadian Natural Resources for $6.5 billion in cash.

In particular, the oil and gas giant plans to sell its 20% non-operated stake in the Athabasca Oil Sands Project, 70% operated interest in the Duvernay shale, and related Alberta assets.

This sale is part of Chevron's plan to divest $10 billion-$15 billion in assets by 2028 to streamline its global energy portfolio.

The deal, effective September 1, 2024, is expected to close in the fourth quarter of 2024, pending regulatory approvals.

Read: Analyst Questions 'What Could Hess Be Worth?' As Chevron Advances In Acquisition Efforts

These acquisitions are expected to add approximately 122,500 BOE/d of production in 2025 and around 1,448 MMBOE in total proved plus probable reserves to Canadian Natural Resources portfolio.

Scott Stauth, Canadian Natural's President, said, "The light crude oil and liquids rich Duvernay assets fit well with our current operations in the area and will drive significant value from our area knowledge and significant experience in this type of resource play."

Mark Stainthorpe, Canadian Natural's Chief Financial Officer, said, "This is a great opportunity to add to our world class Oil Sands Mining and Upgrading asset at AOSP, as well as light crude oil and liquids rich assets in Alberta. Both of these acquisition properties are targeted to provide significant free cash flow generation on a go forward basis."

"Having operated the AOSP mines and knowing the assets well, eliminates the risks associated with a brownfield or greenfield project. These transactions are immediately cash flow and earnings accretive to Canadian Natural shareholders."

Along with this deal, Canadian Natural's Board has approved a 7% dividend increase to $0.5625 per share, payable in January 2025, while post-acquisition free cash flow expected to be allocated 60% to shareholders and 40% to debt reduction until net debt reaches $15 billion.

Last month, Chevron announced that the Federal Trade Commission (FTC) completed an antitrust review of its merger with Hess Corp (NYSE:HES), satisfying a critical closing condition for the transaction.

Investors can gain exposure to CVX via EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and Westwood Salient Enhanced Energy Income ETF (NASDAQ:WEEI).

Price Action: CVX shares are up 1.1% at $152.40 and CNQ shares rose 2.81% at $36.54 premarket at the last check Monday.

Photo by Jonathan Weiss on Shutterstock

• US Energy Stocks Notch Biggest Weekly Gains In 2 Years, Exxon Hits Record Highs As Crude Surges To $75 On Israel-Iran Jitters