The arrangement is signed. The barrels are not Cenovus barrels yet
Cenovus Energy Inc. (TSX: CVE, NYSE: CVE) said Monday it has a definitive arrangement agreement to acquire Athabasca Oil Corporation (TSX: ATH). The GlobeNewswire note is dated Oct. 5. Implied enterprise value is $5.7 billion. Athabasca holders get $12.00 a share, with a choice of cash, 0.264 of a Cenovus share, or a mix, subject to pro-ration. Cash is capped at $4.3 billion. Share consideration is capped at 44.4 million Cenovus shares.
The company said the deal adds about 45,000 barrels of oil equivalent a day, including thermal at Leismer and Corner near Christina Lake, May River, and Thornbury. Annual corporate and commercial synergies are put at $85 million, most of that in the first full year after close. The 115,000-barrel-a-day thermal number in the release is a 2032 pathway. It is not today's rate.
Both boards approved it. Athabasca directors and officers, about 2.2 percent of the stock, signed support agreements. Close is December 2026, subject to Athabasca shareholder approval and regulators. There is no financing condition. Cash comes from cash on hand and short-term borrowings. The $4 billion net-debt target is unchanged.
This is an oilsands tuck-in next to Christina Lake. It is not the MEG close, not first oil from a new pad, and not a Suncor note.