Cenovus Energy to buy Athabasca Oil in $5.7B cash-and-stock deal
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Cenovus Energy (CVE) said Monday it agreed to acquire Athabasca Oil (ATHOF) in a cash-and-stock deal valued at ~$5.7B, representing a 14% premium to Athabasca's 20-day volume-weighted average trading price.
Under the deal terms, Cenovus (CVE) will acquire all issued and outstanding common shares of Athabasca (ATHOF) for $12.00/share, payable in cash and shares, with each Athabasca shareholder having the option to elect to receive $12.00 in cash 0.264 of a Cenovus (CVE) common share for each Athabasca common share held.
Cenovus (CVE) said the acquisition adds ~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 said it 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.
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