Cenovus Energy said Monday it agreed to acquire Athabasca Oil in a cash-and-stock deal valued at about C$5.7B, a 14% premium to Athabasca's 20-day volume-weighted average trading price. Under the terms, Cenovus will acquire all issued and outstanding common shares of Athabasca for C$12.00 per share, with each Athabasca shareholder able to elect either C$12.00 in cash or 0.264 of a Cenovus common share for each Athabasca common share held. Cenovus said the acquisition adds roughly 45K boe/day of production, including thermal assets near its Christina Lake, May River, and Thornbury operations, with the potential to accelerate thermal production to 115K bbl/day by 2032. The company expects C$85M of annual corporate and commercial synergies, with the majority captured during the first full year after closing, while also consolidating ownership of Duvernay Energy, with the option to accelerate development and grow production to a sustainable 20K boe/day. Cenovus President and CEO Jon McKenzie said the transaction strengthens the company's position in one of the world's premier oil-producing regions and is a natural extension of its oil sands strategy.
Cenovus Energy IncCenovus agreed to acquire Athabasca Oil in a C$5.7B cash-and-stock deal, adding ~45K boe/day of production and C$85M of expected annual synergies.
Cenovus's acquisition consolidates ownership of Duvernay Energy, with the option to accelerate development to a sustainable 20K boe/day.
