Transaction Details: 

Cenovus Energy has announced it will acquire Husky Energy in a all-stock transaction valued at $23.6 billion, inclusive of debt.

This deal closed on March 31, 2021.

The combined company will operate as Cenovus Energy Inc. and remain headquartered in Calgary, Alberta. The transaction has been unanimously approved by the Boards of Directors of Cenovus and Husky and is expected to close in the first quarter of 2021.

Asset Details:

• Production: 275 Mboe/d (YTD)

• Production Mix: (55% oil) (as of 2Q'20)

• Reserves: 1.4 BBOE (as of 12/21/2019

• Husky shareholders will receive 0.7845 of a Cenovus share plus 0.0651 of a Cenovus share purchase warrant in exchange for each Husky common share

• Anticipated annual run rate synergies of $1.2 billion, largely achieved within the first year, independent of commodity prices
• Expected free funds flow break-even at West Texas Intermediate (WTI) pricing of US$36 per barrel (bbl) in 2021, and at less than WTI US$33/bbl by 2023
• Anticipated quarterly dividend of $0.0175 per share (upon Board approval) and positioned for consistent growth
• Low exposure to Western Canadian Select (WCS) locational differential risk while maintaining healthy exposure to global commodity prices
• Net-debt-to-adjusted-EBITDA ratio of less than 2x expected to be achieved in 2022

Asset Map