Christina Lake operations. Picture: Cenovus Vitality
Cenovus Vitality has entered right into a definitive settlement to amass MEG Vitality in a money and inventory transaction valued at $7.9 billion CAD ($5.7 billion USD), inclusive of assumed debt.
The deal follows MEG’s latest rejection of a lesser takeover bid from Strathcona Assets.
The acquisition brings collectively two main SAGD oil sands producers with mixed oil sands manufacturing of over 720,000 bpd, the bottom steam-to-oil ratio and the most important land base in the very best quality useful resource space within the basin.
Cenovus additionally said the deal consolidates adjoining, absolutely contiguous and extremely complementary belongings at Christina Lake, enabling built-in improvement of the area and unlocking considerably accelerated entry to beforehand stranded useful resource.
“This transaction represents a novel alternative to amass roughly 110,000 barrels per day of manufacturing inside among the highest high quality, longest-life oil sands useful resource within the basin, which sits instantly adjoining to our core Christina Lake asset,” mentioned Jon McKenzie, Cenovus President & Chief Govt Officer. “The magnitude of synergies that we’ve got recognized makes this a compelling worth creation alternative for Cenovus shareholders. The group at MEG has performed a incredible job creating these belongings, and we sit up for leveraging our mixed experience and scale to drive further worth for a few years to return.”
