Cenovus completes merger with Husky
Canada's Cenovus Energy announced that it has completed its strategic merger with Husky Energy.
The deal was completed through a definitive arrangement agreement announced on October 25, 2020 under which Cenovus and Husky agreed to combine in an all-stock transaction.
With the close of the transaction, Husky has become a wholly owned subsidiary of Cenovus. The combined company will continue to be headquartered in Calgary.
“This is an exciting day for Cenovus as we become a leaner, stronger, more fully integrated oil and natural gas company that is exceptionally well-positioned to weather the current environment and be an energy leader in the years ahead,” said Alex Pourbaix, Cenovus President & Chief Executive Officer.
“With the closing of this transaction, we will focus on safely and efficiently integrating the assets and teams of these two great companies while working to realise the $1.2 billion in synergies we’ve identified. These cost and capital efficiencies, combined with our strong portfolio of well-matched upstream production, midstream and downstream assets as well as improved financial strength, are expected to generate strong value for our shareholders.”
The deal combination creates Canada’s third largest crude oil and natural gas producer, based on total company production, with about 750,000 barrels of oil equivalent per day (BOE/d) of low-cost oil and natural gas production. Cenovus is also now the second largest Canadian-based refiner and upgrader, with total North American upgrading and refining capacity of approximately 660,000 barrels per day (bbls/d). In addition, the company has access to about 265,000 bbls/d of current takeaway capacity from Alberta on existing major pipelines, 305,000 bbls/d of committed capacity on planned pipelines and 16 million barrels of crude oil storage capacity as well as strategic crude-by-rail assets that provide takeaway optionality.
Cenovus said in a statement that it expects to provide additional details on its future plans with the release of its 2021 capital budget and updated corporate guidance in late January.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More gas & LNG news

Gas Traders Leave Essen Hungry for More on German Storage Plans

AG&P Pratham and THINK Gas toast the merger of their two brands

Russia, Turkey Discuss Gas Swap to Pay for Nuclear Plant

India LNG Buyers Negotiate US Deals Before Modi-Trump Summit

Moldova Seeks Deal to Keep the Lights on After Russia Cut Gas Supply

Zelenskiy Says Working With Trump’s Team, Seeking Deal With US

Norway Gets First Ship to Carry Waste Carbon to Undersea Storage

ADNOC Gas delivers record $5 billion net income for 2024

Quebec Says It’s Open to LNG, Oil Projects After Trump Threats
