Energy

Cenovus Energy Inc. has reached an agreement to sell its Tucker thermal asset for total cash proceeds of $800 million. Proceeds from this transaction will further accelerate the company’s reduction of net debt and enhance its capacity to increase shareholder returns. Including this transaction, the company expects to realize almost $2 billion of total proceeds from asset sales announced in 2021. “This is yet ...

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has reached an agreement to sell its Tucker thermal asset for total cash proceeds of $800 million. Proceeds from this transaction will further accelerate the company's reduction of net debt and enhance its capacity to increase shareholder returns. Including this transaction, the company expects to realize almost $2 billion of total proceeds from asset sales announced in 2021.

"This is yet another example of Cenovus seizing opportunities to generate incremental value for shareholders," said Alex Pourbaix, Cenovus's President & Chief Executive Officer. "With Tucker and the other divestitures announced this year, we have delivered on our asset sales commitment for 2021, positioning the company well to focus on higher-return opportunities in the portfolio and continue increasing returns to shareholders."

Located in northeastern Alberta, Tucker's expected 2022 average production is between 18,000 barrels per day and 21,000 barrels per day. The transaction is expected to close in late January, subject to customary closing conditions.

2022 Guidance
Cenovus's corporate guidance dated December 7, 2021 does not reflect this asset sale. The company plans to update guidance with its fourth quarter results in February 2022.

Advisory
Basis of Presentation
All financial figures and information have been prepared in Canadian dollars (which includes references to "dollars" and "$"), except where another currency has been indicated, and in accordance with International Financial Reporting Standards ("IFRS" or "GAAP") as issued by the International Accounting Standards Board. Production volumes are presented on a before royalties basis.

Forward-looking Information
This news release contains certain forward-looking statements and forward-looking information (collectively referred to as "forward-looking information") within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995, about our current expectations, estimates and projections about the future, based on certain assumptions made by us in light of our experience and perception of historical trends. Although Cenovus believes that the expectations represented by such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information as actual results may differ materially from those expressed or implied. Cenovus undertakes no obligation to update or revise any forward-looking information except as required by law.

This forward-looking information is identified by words such as "accelerate", "commitment", "continue", "deliver", "enhance", "expect", "focus", "plan", "position" and "will" or similar expressions and includes suggestions of future outcomes, including statements about: using sale proceeds to accelerate reduction of net debt and enhance capacity to increase shareholder returns; focusing on higher-return opportunities in the portfolio; realizing proceeds from asset sales announced in 2021; Tucker's expected 2022 average production; closing the transaction; and our timing to update our corporate guidance.

Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to Cenovus and others that apply to the industry generally.

Additional information about risks, assumptions, uncertainties and other factors that could cause Cenovus's actual results to differ materially from those expressed or implied by its forward-looking statements is contained under "Risk Management and Risk Factors" in Cenovus's Annual Management's Discussion and Analysis (MD&A) or Form 40-F for the year ended December 31, 2020 and in the updates in the "Risk Management and Risk Factors" section of Cenovus's MD&A for the period ended September 30, 2021.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is focused on managing its assets in a safe, innovative and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company's preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com .

Find Cenovus on Facebook , Twitter , LinkedIn , YouTube and Instagram .

Cenovus contacts:

Investors Media
Investor Relations general line
Media Relations general line
403-766-7711 403-766-7751


News Provided by GlobeNewswire via QuoteMedia

CVE:CA,CVE

Ovintiv to Host its 2021 Fourth Quarter and Year-end Results Conference Call and Webcast on February 25, 2022

 Ovintiv Inc. (NYSE: OVV) (TSX: OVV) today announced plans to hold its 2021 fourth quarter and year-end results conference call at 9:00 a.m. MT on Friday, February 25, 2022 . The Company plans to release its financial and operating results after market close, Thursday, February 24, 2022 . In addition to the release, supplemental slides and financial statements will be available on the Company's website, located at www.ovintiv.com .

Keep reading... Show less

Imperial sets 2030 oil sands emission intensity reduction goal; expects to meet 2023 objective

  • Oil sands greenhouse gas emissions intensity expected to decrease by 30 percent
  • Reaffirms goal to achieve net zero emissions in oil sands operations by 2050 through collaboration with governments and other industry partners
  • Emissions reduction plan includes game-changing in situ technologies, efficiency improvements, and carbon capture and storage

Imperial Oil Limited (TSE: IMO, NYSE American: IMO) said today it plans further reductions in greenhouse gas emissions intensity over the next decade to help support Canada's net zero goals.

By the end of 2030, Imperial anticipates reduced Scope 1 and 2 greenhouse gas emissions intensity of its operated oil sands facilities by 30 percent, compared with 2016 levels. The company plans to achieve this through implementation of lower greenhouse gas next generation technologies at its Cold Lake operation, efficiency improvements at its facilities, and the use of carbon capture and storage.

Keep reading... Show less

Suncor Energy Provides Q4 2021 Safety and Production Update

Suncor (TSX: SU) (NYSE: SU) today is providing an update on recent incidents and fourth quarter 2021 production.

We are deeply saddened by the fatality at our Base plant mining operations on January 6, 2022. We extend our thoughts and condolences to the family, friends and colleagues of the deceased worker.

Keep reading... Show less
barrels of oil

VIDEO — Eric Nuttall: Oil in Multi-year Bull Market, Supply Crisis Coming

Eric Nuttall: Oil in Multi-year Bull Market, Supply Crisis Coming youtu.be

Supply and demand fundamentals show oil is in a multi-year bull market with a supply crisis in the works.

That's according to Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners. He manages the firm's Ninepoint Energy Fund, which he said was the best-performing energy fund of 2021.

"The risk/reward for me in the sector is incredible," he told the Investing News Network in an interview. "My biggest challenge is everything looks good — large caps look good, small caps look good. Oil looks good, natural gas looks good. Services look good, offshore drilling looks good — everything looks good."

Keep reading... Show less

TOURMALINE INCREASES QUARTERLY DIVIDEND BY 11%, DECLARES A $1.25/SHARE SPECIAL DIVIDEND AND PROVIDES OPERATIONAL UPDATE

 Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to announce a quarterly dividend increase and special cash dividend and provide an operational update.

Keep reading... Show less

Imperial to hold 2021 Fourth Quarter Earnings Call

(TSE:IMO, NYSE American: IMO) Brad Corson, chairman, president and chief executive officer, and Dave Hughes, vice-president investor relations, Imperial Oil Limited, will host a 2021 Fourth Quarter Earnings Call on Tuesday, February 1, following the company's fourth quarter earnings release that morning. The event begins at 9 a.m. MT and will be accessible by webcast.

During the call, Mr. Corson will offer brief remarks prior to taking questions from Imperial's covering analysts.

Keep reading... Show less

Latest Press Releases

Related News

×