Cenovus Energy agrees to acquire Athabasca Oil for C$5.7 billion

• Cenovus Energy agreed to acquire Athabasca Oil in a transaction with an implied enterprise value of C$5.7 billion.
• The acquisition features a purchase price of C$12 per share with cash consideration capped at C$4.3 billion.
• The company stated the transaction adds 45 thousand barrels per day in exit production and C$85 million in annual synergies.

Cenovus Energy (NYSE:CVE) agreed to acquire Athabasca Oil in a cash-and-stock transaction with an implied enterprise value of C$5.7 billion.

The agreement values Athabasca Oil at C$12 per share, with consideration structured as 65% to 75% cash and 25% to 35% Cenovus shares.

Under the finalized terms, cash consideration is capped at C$4.3 billion and share issuance is capped at 44.4 million shares.

The transaction is estimated to add approximately 45 thousand barrels of oil equivalent per day based on projected 2026 exit production.

Following the announcement, Cenovus Energy's share price was down at C$22.40.

Cenovus Energy stated that it expects approximately C$85 million in annual corporate and commercial synergies, mostly within the first full year after closing.

The company plans to fund the cash portion using cash on hand and short-term borrowings, targeting a year-end 2026 pro forma net debt of C$5 billion to C$5.5 billion.