06:38 AM EDT, 10/07/2024 (MT Newswires) -- Canadian Natural Resources ( CNQ ) rose 0.2% in US premarket trading on Monday after saying it will boost its quarterly dividend 7% to $0.5625 per common share.

The company said the dividend boost is in conjunction with the acquisition of Chevron Canada's (CVX) Alberta assets and as a result of its "significant" free cash flow, including targeted additional free cash flow generation from the acquired assets and the company's strong financial position.

The dividend will be payable on January 3, 2025 to shareholders of record at the close of business on December 13, 2024. CNQ added this will make 2025 the 25th consecutive year of dividend increases by Canadian Natural, with a CAGR of 21% over that time.

This comes as Chevron Canada, an indirect subsidiary of Chevron Corp. (CVX), announced that it and a related entity agreed to sell their 20% non-operated interest in the Athabasca Oil Sands Project, 70% operated interest in the Duvernay shale, and related interests, all located in Alberta, Canada, to CNQ.

Chevron's statement noted the US$6.5 billion all-cash transaction has an effective date of September 1, 2024, and is expected to close during the fourth quarter of 2024, subject to regulatory approvals and other customary closing conditions.

Monday's statement said the assets subject to the agreement contributed 84,000 boe/d of production, net of royalties, to Chevron in 2023. It added this transaction progresses Chevron's previously announced plans to divest $10-15 billion in assets by 2028 to optimize its global energy portfolio.

CNQ climbed $0.40 or 0.8%, to $28.22 on the TSX on Friday.