Cenovus to Acquire Athabasca Oil for $5.7 Billion

Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has announced a definitive agreement to acquire Athabasca Oil Corporation (TSX: ATH) in a cash and stock deal valued at $5.7 billion. The transaction is expected to strengthen Cenovus’s position in the oil sands sector by adding approximately 45 thousand barrels of oil equivalent per day (MBOE/d) to its production, primarily from thermal assets near its existing operations.

The acquisition includes high-quality, long-life resources with over 75 years of proved plus probable reserves. Cenovus plans to leverage its Steam-Assisted Gravity Drainage (SAGD) operating expertise to enhance reservoir performance and accelerate production growth to 115 thousand barrels per day (Mbbls/d) by 2032. The company also anticipates realizing $85 million in annual corporate and commercial synergies.

Under the terms of the agreement, Cenovus will acquire all outstanding common shares of Athabasca at $12.00 per share, payable in cash or Cenovus common shares. Athabasca shareholders can choose between cash, shares, or a combination of both, subject to proration. The transaction is expected to close in December 2026, pending regulatory approvals and shareholder approval.

Cenovus’s financial framework and net debt target of $4 billion will remain unchanged. The company’s net debt at the end of the third quarter was approximately $3.0 billion, and including the cash component of this transaction, year-end 2026 pro forma net debt is expected to be between $5.0 billion to $5.5 billion.