Recent Updates — CVE

Cenovus Energy has entered into a definitive arrangement agreement to acquire Athabasca Oil Corporation in an all-stock and cash transaction with an implied enterprise value of $5.7 billion. Under the terms, Athabasca shareholders will receive $12.00 per share, payable entirely in cash or as 0.264 Cenovus common shares, subject to pro-ration limits of $4.3 billion in cash and 44.4 million shares. The transaction adds approximately 45 thousand barrels of oil equivalent per day (MBOE/d) of thermal production proximal to Cenovus’s core assets and is expected to generate $85 million in annual corporate and commercial synergies. Cenovus expects the acquisition to close in December 2026, subject to regulatory approvals and shareholder consent. Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region.

Cenovus Energy Inc. reported second-quarter 2026 results with $17.4 billion in revenues, up from $12.4 billion in the prior quarter. Adjusted funds flow reached approximately $5.0 billion and free funds flow was $3.8 billion. Total upstream production averaged 970.4 thousand barrels of oil equivalent per day (MBOE/d), while downstream crude throughput was 451.5 thousand barrels per day (Mbbls/d). The company returned $1.4 billion to shareholders, comprising $1.0 billion in share repurchases and $0.4 billion in dividends. Net earnings increased to $2.9 billion from $1.6 billion in the first quarter of 2026. Long-term debt decreased to $8.6 billion as the remaining $2.2 billion term loan for the MEG Energy Corp. acquisition was fully repaid. The Board declared a quarterly base dividend of $0.22 per common share, payable September 29, 2026, to shareholders of record on September 15, 2026. Cenovus is an integrated energy company engaged in crude oil and natural gas production, upgrading, refining, and marketing operations primarily in Canada and the United States.