Tuesday, January 25 2022

The product will accelerate debt reduction and support improved shareholder returns

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CALGARY, Alta., Nov. 30, 2021 (GLOBE NEWSWIRE) – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has entered into agreements to sell its Husky retail fuels network and the assets of Wembley in its conventional business for combined total cash proceeds of nearly $ 660 million, allowing the company to further focus its portfolio, accelerate deleveraging and support increased returns to shareholders.

“This is yet another demonstration that Cenovus offers opportunities to continue to optimize our portfolio and unlock value from assets that will not attract significant investment to our business,” said Alex Pourbaix. , President and CEO of Cenovus. “With these latest deals, we now expect to achieve more than $ 1.1 billion in total revenue from announced sales in 2021.”


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In November, Cenovus announced the substantial achievement of its interim net debt target of $ 10 billion, the doubling of its quarterly dividend starting in the fourth quarter of 2021 and the implementation of a public offering program of repurchase in the normal course of the ordinary shares of the company. The proceeds from these latest transactions will advance net debt repayment toward the company’s longer-term goal of $ 8 billion and improve the company’s ability to increase returns to shareholders.

All final cash proceeds will be subject to customary closing adjustments.

Husky Fuel Retail Network
Cenovus has entered into agreements to sell 337 gas stations in its Husky Fuels retail network to Parkland Corporation and Federated Co-operatives Limited for total cash proceeds of $ 420 million. Cenovus retains its commercial fuels business, which includes approximately 170 locations of card locks, bulk plants and travel centers. The transaction is expected to close in mid-2022 and is subject to the approval of the Competition Act (Canada) and other customary closing conditions.


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Conventional segment
In the conventional sector, the company has reached a deal to sell its assets primarily from Montney to Wembley for cash proceeds of around $ 238 million. Total production of this asset averaged about 3,200 barrels of oil equivalent per day in 2021, of which about 38% was petroleum liquids and natural gas. This transaction is expected to be finalized in December 2021, subject to customary closing conditions.

Presentation basis
All financial figures and information have been prepared in Canadian dollars (including references to “dollars” and “$”), except where another currency has been indicated, and in accordance with International Financial Reporting Standards (“IFRS Or “GAAP”) published by the International Accounting Standards Board. Production volumes are presented before royalties.


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Forward-looking information
This press release contains certain forward-looking statements and information (collectively referred to as “forward-looking information”) within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995, regarding our current expectations. , estimates and projections for the future, based on certain assumptions we have made in light of our experience and our perception of historical trends. Although Cenovus believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information, as actual results may differ materially from those expressed or implied. Cenovus assumes no obligation to update or revise any forward-looking information, except as required by law.


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This forward-looking information is identified by words such as “move forward”, “improve”, “expect”, “focus” and “will” or similar expressions and include suggestions for future results, including statements about: l accelerating deleveraging and increasing returns to shareholders; repurchase the common shares of Cenovus; realize the proceeds of sales; using the proceeds of the sale to reduce debt and meet the interim net indebtedness target of $ 10 billion and the longer-term net indebtedness target of $ 8 billion; and close transactions.

The development of forward-looking information involves the use of a number of assumptions and the consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally.


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Additional information about the risks, assumptions, uncertainties and other factors that could cause Cenovus’ actual results to differ materially from those expressed or implied by its forward-looking statements can be found under “Risk Management and Risk Factors” in the Cenovus annual report. Management report and analysis (MD&A) or Form 40-F for the fiscal year ended December 31, 2020 and in updates to the “Risk management and risk factors” section of the Management report for the period ended September 30, 2021.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company that operates oil and natural gas production activities in Canada and the Asia-Pacific region, as well as upgrader, refining and marketing activities in Canada and the United States. United States. The company focuses on managing its assets in a safe, innovative and profitable manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

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