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Cenovus to Acquire Husky Energy in All-Stock Deal Worth $23.6B

Announced Date
October 25,2020
Deal Value $
23,600,000,000
Transaction Type
Corporate
Buyer
Seller
Price Per BOE $
40,000
Source Documents:
   Source Link
   Source Link
Location
Region
Canada

Country
Canada

Play


Production & Reserves
Production
275,000 Boe/d

Production Mix
55 % Oil

Reserves
1,431 MMboe (1P)


Multiples
Production ($/boe/d)
85,818

$1P Boe
16

Adj. $/acre is based on production @40,000 Boe/d

Transaction Details: 

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

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

Transaction highlights:
  • 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

Canada Deal Activity In Last 12 Months



Other Canada Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Nov-17-2020 - - Click here Alberta  E&P
Nov-09-2020 - - Click here Alberta  E&P
Sep-01-2020 - - Click here Alberta  E&P
Aug-10-2020 - - Click here British Columbia  E&P
Jul-22-2020 - - Click here British Columbia  E&P

Price History



Date Deal Headline Price$/acre
Nov-09-2020 Headwater Inks $100MM Deal for Cenovus' Marten Hills Asset - -
Nov-01-2019 Cona Resources Acquires Pengrowth Energy for C$740 Million - -
May-29-2019 CNRL to Acquire Devon's Entire Canadian Portfolio for C$3.7 Billion Cash - -

Other Husky Energy Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
May-11-2016 - - Click here Saskatchewan  E&P
May-03-2016 - - Click here Alberta  E&P

Other Cenovus Energy Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Nov-09-2020 - - Click here Alberta  E&P
Aug-09-2018 - - Click here   E&P
Nov-14-2017 - - Click here Saskatchewan  E&P
Oct-19-2017 - - Click here Alberta  E&P
Sep-25-2017 - - Click here Alberta  E&P