Cenovus to Buy Athabasca Oil for C$5.7 Billion

**Cenovus Energy to Acquire Athabasca Oil in C$5.7 Billion Deal**

Cenovus Energy has reached an agreement to acquire Athabasca Oil Corporation in a cash-and-stock transaction valued at approximately C$5.7 billion (US$4.1 billion). The acquisition expands Cenovus’s footprint in the oil sands and adds roughly 45,000 barrels of oil equivalent per day (boed) of production.

Under the terms of the definitive arrangement agreement, Cenovus will purchase all outstanding shares of Athabasca for $12 per share. The payment structure will consist of 65% to 75% cash and 25% to 35% Cenovus common shares, subject to shareholder elections and proration.

Through the transaction, Cenovus will acquire Athabasca’s Leismer and Corner oil sands assets, which are situated near Cenovus’s existing operations at Christina Lake, May River, and Thornbury. According to Cenovus, these assets hold more than 75 years of proved plus probable reserves life, based on projected 2026 exit production levels.

Cenovus plans to scale up thermal oil production from the newly acquired properties to 115,000 barrels per day (bpd) by 2032. The company intends to implement its steam-assisted gravity drainage (SAGD) operating model to enhance reservoir efficiency, reduce steam-to-oil ratios, and speed up resource extraction.

“This transaction strengthens our position in one of the world’s premier oil-producing regions and is a natural extension of our oil sands strategy,” said Jon McKenzie, Cenovus President and CEO. “Athabasca’s high-quality, long-life assets fit well with our portfolio and provide a clear opportunity to apply our scale and operating expertise to improve performance, grow production and create long-term shareholder value.”

Additionally, the acquisition consolidates Cenovus’s ownership of Duvernay Energy Corporation, securing an oil-weighted position in the Kaybob Duvernay. Cenovus indicated this asset has the potential to boost development and reach a sustained production level of 20,000 boed.

The company anticipates generating approximately $85 million in annual corporate and commercial synergies, with the majority realized within the first full year after the deal closes.

Cenovus will fund the cash portion of the acquisition using cash on hand and short-term debt. Assuming the maximum cash consideration of $4.3 billion is utilized, Cenovus projects its pro forma net debt will range between $5 billion and $5.5 billion by the end of 2026.

The boards of directors of both companies have unanimously approved the transaction. Subject to regulatory clearances, Athabasca shareholder approval, and other customary closing conditions, the deal is expected to close in December 2026.