Overview

• Cenovus is negotiating with a coalition of First Nations and Métis communities, including Chipewyan Prairie and Heart Lake, to structure a C$2 billion equity investment in MEG Energy backed by federal and provincial support.
• If completed, the deal would rank among the largest direct Indigenous stakes in an oil sands producer and advance government goals to increase Indigenous ownership in resource projects.
• Sources say a joint offer could emerge in September, though discussions remain preliminary and could still falter.
• MEG’s share price climbed above Strathcona’s C$6 billion hostile bid following reports of the Indigenous-backed approach, signaling investor expectations of a higher proposal.
• MEG’s Christina Lake assets sit adjacent to Cenovus operations with approvals for roughly 210,000 barrels per day, offering potential operational synergies with Cenovus’s existing production.