TORONTO - The Ontario Teachers' Pension Plan says it has an agreement with Cenovus Energy Inc. (TSX:CVE) to acquire Cenovus's wholly-owned subsidiary, Heritage Royalty Limited Partnership, in a deal worth about $3.3 billion.

Calgary-based Heritage Royalty holds a broad portfolio of oil and gas royalties in Western Canada.

The pension plan says the deal, led by Teachers' Natural Resources Group, is expected to close by the end of July once it receives the customary regulatory approvals.

Heritage Royalty had revenues of approximately $320 million in 2014 based on average production of approximately 14,800 barrels of oil equivalent per day.

The Calgary-based company owns one of the largest packages of fee title acreage in Canada -- about 4.8 million acres in Alberta, Saskatchewan and Manitoba.

Teachers' created Natural Resources Group in 2013 to manage assets that include timberland, agriculture and oil and gas. With $154.5 billion in net assets as of Dec. 31, 2014, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada.