CREATING A RESILIENT INTEGRATED ENERGY LEADER (TSX: CVE) (NYSE: CVE) (TSX: HSE)
Leadership and Governance Leadership Alex Pourbaix Jeff Hart Jon McKenzie Track record of operational excellence, capital discipline, cost management and strong safety performance Other senior executives will be selected from…
Benefits of the combination Combination creates a resilient integrated energy leader that delivers value accretion for all shareholders Accretive Synergies & Balanced Credit on day 1 Cost Structure Portfolio Profile Accretive to…
Transaction summary Transaction Consideration Ownership Conditions & approvals All share transaction Husky common Pro forma equity ownership Unanimously approved by shareholders to receive for each common share 61% Cenovus each of…
Integrated portfolio of high-quality assets Combining high-quality, low-cost heavy oil assets with extensive midstream / downstream infrastructure Top-tier heavy oil assets Extensive midstream & downstream network FCCL best-in-class…
High-quality, diverse & integrated portfolio Complementary assets provide geographic diversification, physical integration and market access coupled with long-life 2P reserves of 9.0 Bboe (RLI of 33 years) 2020 YTD Production Rainbow…
Balanced integrated heavy oil value chain Creates a resilient company with reduced exposure to Alberta heavy oil price differentials Heavy oil blend vs. processing and export capacity Reduced exposure to 900 Alberta WCS prices 800…
Enhanced operating scale Combined company will be one of the largest Canadian integrated oil and gas producers 2021E production Downstream capacity(1) 1,400 2019 2P reserves 18 1,200 Upgrading capacity 2021E production Refining…
1.2 billion per year in run-rate synergies 900 million of the run-rate synergies expected to be achieved within first year, 600 million within the first 6 months (MM per year) A Workforce reductions, operating & other cost synergies…
Lloydminster refinery & upgrading complex synergy There is strong industrial logic to physically integrate FCCLs low-cost production with the Lloyd Complex, however this is not included in the 600 million of cash flow synergies…
Efficiencies through returns-focused sustaining capital allocation The combined company will be positioned to more efficiently allocate capital across the combined portfolio on a returns-focused basis, significantly reducing sustaining…
Accretive on free funds flow break-even Forecasted break-even reductions anticipated through 2022 from optimization of cost structure and shortening heavy oil value chain Illustrative free cash flow break-even 37 WTI break-even…
Combined assets provide cash flow stability Reduced locational differential risk while maintaining healthy exposure to global pricing Balances net asset value (illustrative sensitivity)(1) AFF Sensitivity to US1/bbl change(2) Husky…
Positioned for free funds flow across the cycle More stable revenue profile leads to more predictable funds flow relative to Cenovus standalone business Illustrative 2021 free funds flow and free funds flow yield (1) 5.0 FFF…
Balance sheet supports investment grade credit profile Cenovus will continue its commitment to balance sheet strength and prioritization of an investment grade credit rating Net debt & net debt/LTM EBITDA (1) Attractive debt maturity…
Disciplined capital allocation priorities Prioritize investment grade credit rating Safe & reliable operations / sustaining capital Capital allocation principles Committed 2.4 billion per year capital Maintain strong…
Committed to safety and ESG leadership Global energy supplier of choice in the transition to a lower-carbon future Climate & Indigenous Environmental Diversity & emissions reduction communities stewardship inclusion Ambition of…
Next steps Husky shareholder approval required by 66% of votes cast, Cenovus shareholder approval required by majority of votes cast, with voting expected to occur in December 2020 Cenovuss Board of Directors unanimously supports…
Why own the new Cenovus going forward Combination creates a resilient integrated energy leader that delivers value accretion for all shareholders Leading cost Diversification, Committed to Resilient structure & Committed to…
Advisories Basis of Presentation All financial figures and information have been prepared in Canadian dollars (which includes references to dollars and ), except where another currency has been indicated, and in accordance with…
Advisories Note Regarding Forward-Looking Information This presentation contains certain forward-looking statements and forward-looking information (collectively referred to as forward-looking information) within the meaning of…
Advisories Note Regarding Forward-Looking Information (continued) Developing forward-looking information involves reliance on a number of assumptions and consideration of certain risks and uncertainties, some of which are specific to…
Advisories Note Regarding Forward-Looking Information (continued) The forward-looking information in this presentation also includes financial outlooks and other forward-looking metrics (including production, financial and oil and gas…
Advisories Note Regarding Forward-Looking Information (continued) the duration of the market downturn; a resurgence in cases of COVID-19, which has occurred in certain locations and the possibility of which in other locations remains…
Advisories Note Regarding Forward-Looking Information (continued) unexpected difficulties in producing, transporting or refining of bitumen and/or crude oil into petroleum and chemical products; risks associated with technology and…
Advisories Oil and Gas Information The estimates of reserves of Cenovus were prepared effective December 31, 2019 by independent qualified reserves evaluators, based on the COGE Handbook and in compliance with the requirements of…
Loading...
