Cenovus announces sale of Tucker asset for $800 million
December 16 2021 - 3:55PM
Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has reached an agreement
to sell its Tucker thermal asset for total cash proceeds of $800
million. Proceeds from this transaction will further accelerate the
company’s reduction of net debt and enhance its capacity to
increase shareholder returns. Including this transaction, the
company expects to realize almost $2 billion of total proceeds from
asset sales announced in 2021.
“This is yet another example of Cenovus seizing opportunities to
generate incremental value for shareholders,” said Alex Pourbaix,
Cenovus’s President & Chief Executive Officer. “With Tucker and
the other divestitures announced this year, we have delivered on
our asset sales commitment for 2021, positioning the company well
to focus on higher-return opportunities in the portfolio and
continue increasing returns to shareholders.”
Located in northeastern Alberta, Tucker’s expected 2022 average
production is between 18,000 barrels per day and 21,000 barrels per
day. The transaction is expected to close in late January, subject
to customary closing conditions.
2022 GuidanceCenovus’s corporate guidance dated
December 7, 2021 does not reflect this asset sale. The company
plans to update guidance with its fourth quarter results in
February 2022.
Advisory Basis of Presentation
All financial figures and information have been prepared in
Canadian dollars (which includes references to "dollars" and "$"),
except where another currency has been indicated, and in accordance
with International Financial Reporting Standards ("IFRS" or "GAAP")
as issued by the International Accounting Standards Board.
Production volumes are presented on a before royalties basis.
Forward-looking Information This 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 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 undertakes no obligation
to update or revise any forward-looking information except as
required by law.
This forward-looking information is identified by words such as
“accelerate”, “commitment”, “continue”, “deliver”, “enhance”,
“expect”, “focus”, “plan”, “position” and “will” or similar
expressions and includes suggestions of future outcomes, including
statements about: using sale proceeds to accelerate reduction of
net debt and enhance capacity to increase shareholder returns;
focusing on higher-return opportunities in the portfolio; realizing
proceeds from asset sales announced in 2021; Tucker’s expected 2022
average production; closing the transaction; and our timing to
update our corporate guidance.
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.
Additional information about risks, assumptions, uncertainties
and other factors that could cause Cenovus's actual results to
differ materially from those expressed or implied by its
forward-looking statements is contained under “Risk Management and
Risk Factors” in Cenovus's Annual Management’s Discussion and
Analysis (MD&A) or Form 40-F for the year ended December 31,
2020 and in the updates in the “Risk Management and Risk Factors”
section of Cenovus’s MD&A for the period ended September 30,
2021.
Cenovus Energy Inc.
Cenovus Energy Inc. is an integrated energy company with oil and
natural gas production operations in Canada and the Asia Pacific
region, and upgrading, refining and marketing operations in Canada
and the United States. The company is focused on managing its
assets in a safe, innovative and cost-efficient 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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Cenovus contacts:
Investors |
Media |
Investor Relations general line |
Media Relations general line |
403-766-7711 |
403-766-7751 |
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