Cenovus Energy to acquire Athabasca Oil for $5.7 billion in cash-and-stock deal
Calgary energy firm will add roughly 45,000 barrels of oil equivalent daily production through acquisition expected to close in December.
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Cenovus Energy has announced an agreement to acquire Athabasca Oil Corp. in a cash-and-stock deal valued at $5.7 billion, combining two Calgary-based energy companies and adding significant production capacity.
Athabasca shareholders have two options: $12 cash per share, or 0.264 Cenovus common shares per share. Both are subject to limits: Cenovus has capped total cash available at $4.3 billion and limited Cenovus shares under the offer to 44.4 million.
The acquisition will add approximately 45,000 barrels of oil equivalent per day to Cenovus's production. Cenovus CEO Jon McKenzie said in a statement that "Athabasca's high-quality, long-life assets fit the company's portfolio and provide a clear opportunity to improve performance, grow production and create long-term shareholder value."
Cenovus shares closed Friday on the Toronto Stock Exchange at $46.25, while Athabasca shares closed at $10.58. The deal is expected to close in December, subject to customary closing conditions, regulatory approvals, and shareholder approvals.
The facts
How much is Cenovus Energy paying to acquire Athabasca Oil?
Cenovus Energy is acquiring Athabasca Oil Corp. for $5.7 billion in a cash-and-stock deal.
What are the share options for Athabasca shareholders?
Athabasca shareholders can choose either $12 cash per share or 0.264 Cenovus common shares per share, though Cenovus has capped total cash at $4.3 billion and Cenovus shares at 44.4 million.
How much daily production will the acquisition add?
The acquisition will add approximately 45,000 barrels of oil equivalent per day to Cenovus's production.
