Cenovus completes acquisition of assets in Western Canada from ConocoPhillips
May 17 2017 - 3:35PM
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.
ADVISORY Forward-looking
informationThis news release contains certain
forward-looking statements and forward-looking information
(collectively referred to as “forward-looking information”) within
the meaning of applicable securities legislation, including the
United States Private Securities Litigation Reform Act of 1995,
about our current expectations, estimates and projections about the
future, based on certain assumptions made by us in light of our
experience and perception of historical trends. Although we believe
that the expectations represented by such forward-looking
information are reasonable, there can be no assurance that such
expectations will prove to be correct.
Forward-looking information in this news release is identified
by words such as “anticipate”, “capacity”, “focus”, “planned” or
similar expressions and includes suggestions of future outcomes,
including statements about: expectations regarding continued safe
and reliable operation of all of the company's assets; expectations
regarding execution of the company's acquisition financing plan;
expectations regarding smooth integration of the Deep Basin assets
and staff; expected impacts of the acquisition; and potential asset
sales and anticipated use of sales proceeds. Readers are cautioned
not to place undue reliance on forward-looking information, as our
actual results may differ materially from those expressed or
implied.
Developing forward-looking information involves reliance on a
number of assumptions and consideration of certain risks and
uncertainties, some of which are specific to Cenovus and others
that apply to the industry generally. The factors or assumptions on
which the forward-looking information is based include: assumptions
disclosed in Cenovus’s 2017 guidance as updated on December 8,
2016, available at cenovus.com; and other risks and uncertainties
described from time to time in the filings Cenovus makes with
securities regulatory authorities.
Readers are cautioned that the foregoing lists are not
exhaustive and are made as at the date hereof. Events or
circumstances could cause our actual results to differ materially
from those estimated or projected and expressed in, or implied by,
the forward-looking information. For a full discussion of Cenovus's
material risk factors, see “Risk Factors” in our Annual Information
Form (AIF) or Form 40-F for the period ended December 31, 2016
and the updates under “Risk Management” in the company's
Management's Discussion and Analysis (MD&A) for the period
ended March 31, 2017, available on SEDAR at sedar.com, on EDGAR at
sec.gov and on Cenovus's website at cenovus.com.
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.
Find Cenovus on Facebook, Twitter, LinkedIn, YouTube and
Instagram.
CENOVUS CONTACTS:
Investor Relations
Kam Sandhar
Vice-President, Investor Relations & Corporate Development
403-766-5883
Steve Murray
Manager, Investor Relations
403-766-3382
Media
Sonja Franklin
Senior Media Advisor
403-766-7264
General media line
403-766-7751
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