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Cenovus Closes MEG Energy Deal, Adding 110,000 Barrels a Day

The purchase consolidates adjacent Christina Lake assets ahead of an updated guidance on Dec. 11.

The plant — where steam is created, water is processed, and bitumen is diluted and prepared to go for further processing — at the Cenovus Christina Lake oilsands facility southeast of Fort McMurray, Alta., on Wednesday April, 24, 2024. The most current steam-assisted gravity drainage (SAGD) technology requires less energy per wellhead to harvest bitumen. THE CANADIAN PRESS/Amber Bracken

Overview

  • Cenovus completed the acquisition of MEG Energy on Nov. 13, combining neighboring oil‑sands operations near Christina Lake in Alberta.
  • The transaction adds approximately 110,000 barrels per day of low‑cost, long‑life production to Cenovus’s portfolio.
  • Total consideration included $752 million for 25.0 million MEG shares bought in the market, $3.44 billion in cash to remaining MEG shareholders, 143.9 million Cenovus shares issued, and about $800 million of net debt assumed.
  • MEG common shares are expected to be delisted from the Toronto Stock Exchange at the close of trading on Nov. 14.
  • The closing ends a takeover contest that featured rival Strathcona Resources, which ultimately backed a sweetened Cenovus offer, and Cenovus plans to issue updated guidance with its 2026 budget on Dec. 11.