Cenovus closes $17.7B acquisition of ConocoPhillips Western Canada assets

pcNewsWireCenovus Energy Inc. (TSX/NYSE: CVE) has completed previously announced acquisition of assets in Western Canada from ConocoPhillips for $17.7 billion, including $14.1 billion in cash and 208 million Cenovus common shares. ConocoPhillips now owns approximately 16.9% of the issued and outstanding Cenovus common shares.

ConocoPhillips Canada retains its operated 50 percent interest in the Surmont oil sands joint venture and its operated 100 percent Blueberry-Montney unconventional acreage position.

photo credit: Cenovus

Press Release

Cenovus completes acquisition of assets in Western Canada from ConocoPhillips

May 17, 2017 16:35 ET | Source: Cenovus Energy Inc.

CALGARY, Alberta, May 17, 2017 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) has closed its previously announced purchase of assets in Western Canada from ConocoPhillips after receiving all necessary regulatory approvals for the transaction. The acquired assets include ConocoPhillips’ 50% interest in the FCCL Partnership, the oil sands venture which was jointly owned with and operated by Cenovus, as well as the majority of ConocoPhillips’ Deep Basin conventional assets in Alberta and British Columbia.

“With the completion of this transformational deal, we now have full control of our best-in-class oil sands projects and an exciting new growth platform in the Deep Basin that provides us with significant short-cycle development opportunities to complement our long-term oil sands growth portfolio,” said Brian Ferguson, Cenovus President & Chief Executive Officer. “As a result of this transaction, we’ve now doubled our production and reserves base.”

In the coming months, Cenovus will remain firmly focused on:

Continuing to safely and reliably operate all of its assets
Efficiently integrating the Deep Basin assets and staff into the company
Deleveraging its balance sheet, including using the proceeds of planned divestitures, such as the sale of the company’s Pelican Lake and Suffield assets, which are currently being marketed.

Cenovus intends to provide an update on its investment plans for its consolidated oil sands business and newly-acquired Deep Basin assets at its Investor Day on June 20, 2017.

Cenovus Energy Inc.
Cenovus Energy Inc. is a Canadian integrated oil company. It is committed to applying fresh, progressive thinking to safely and responsibly unlock energy resources the world needs. Operations include oil sands projects in northern Alberta, which use specialized methods to drill and pump the oil to the surface, and established natural gas and oil production in Alberta, British Columbia and Saskatchewan. The company also has 50% ownership in two U.S. refineries. Cenovus shares trade under the symbol CVE and are listed on the Toronto and New York stock exchanges. For more information, visit cenovus.com.

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