White­cap to buy Saskatchewan light oil as­sets for $940M

Cen­ovus finds a buyer for Wey­burn in­ter­est

Stockwatch Daily - - FRONT PAGE - Mr. Alex Pour­baix re­ports

CEN­OVUS EN­ERGY Inc. has en­tered into an agree­ment to sell its ma­jor­ity in­ter­est in the Wey­burn car­bon-diox­ide-en­hanced oil re­cov­ery op­er­a­tion in Saskatchewan for cash pro­ceeds of $940-mil­lion. The sale is ex­pected to close in the fourth quar­ter of 2017, sub­ject to cus­tom­ary clos­ing con­di­tions.

The pre­vi­ously an­nounced sale of Cen­ovus’s Pel­i­can Lake as­sets closed on Sept. 29, 2017, and the com­pany still an­tic­i­pates the pre­vi­ously an­nounced sales of its Pal­liser and Suffield as­sets to close later this year.

“We’re pleased with the progress we’ve made in de­liv­er­ing on our di­vesti­ture plan

to op­ti­mize our port­fo­lio and delever­age the com­pany’s bal­ance sheet,” said Alex Pour­baix, Cen­ovus’s pres­i­dent and chief ex­ec­u­tive of­fi­cer. “Net pro­ceeds from the Wey­burn as­set sale, com­bined with the other three di­vesti­tures an­nounced ear­lier this fall, will po­si­tion us to re­tire the en­tire $3.6-bil­lion bridge fa­cil­ity as­so­ci­ated with the Cono­coPhillips as­set pur­chase by the end of 2017.”

The com­pany is fo­cused on us­ing cash flow from its op­er­a­tions and as­set sale pro­ceeds to achieve its tar­get of be­ing be­low two times net debt to ad­justed earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­za­tion (EBITDA).

TD Se­cu­ri­ties Inc. acted as exclusive fi­nan­cial ad­viser to Cen­ovus on the Wey­burn trans­ac­tion.

(See CVE Ta­ble 1 on page 20)

About Cen­ovus En­ergy Inc. Cen­ovus En­ergy is a Cana­dian in­te­grated oil com­pany whose op­er­a­tions in­clude oil sands projects in North­ern Al­berta, which use spe­cial­ized meth­ods to drill and pump the oil to the sur­face, and es­tab­lished nat­u­ral gas and oil pro­duc­tion in Al­berta, Bri­tish Columbia and Saskatchewan. The com­pany also has 50-per-cent own­er­ship in two U.S. re­finer­ies.

We seek Safe Har­bor.

Su­san Fay Dabarno, Patrick Darold Daniel, Ian Wil­liam De­laney, Steven F Leer, Richard J Marcogliese, Claude Mongeau, Charles M Ram­pacek, Colin Tay­lor, Wayne Gor­don Thom­son, Rhonda I Zy­gocki

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