Gulf Oil and Gas accountACCOUNT

Cenovus Reaches Agreement to Sell Palliser Assets for $1.3B

Source: www.gulfoilandgas.com 10/19/2017, Location: North America

Cenovus Energy Inc. (CVE) has entered into an agreement to sell its Palliser crude oil and natural gas assets in southeastern Alberta to Torxen Energy and Schlumberger for cash proceeds of $1.3 billion. The sale is expected to close in the fourth quarter of this year, subject to customary closing conditions.

As with other recently announced divestiture agreements, proceeds from the Palliser sale will be used to deleverage the company’s balance sheet. Net proceeds from the sale of Cenovus’s Pelican Lake assets, which closed on September 29, 2017, have been used to retire the first tranche of the company’s $3.6 billion asset-sale bridge facility and to pay down a portion of the second tranche. Net proceeds from the Palliser sale and the recently announced Suffield asset sale, which is also expected to close in the fourth quarter of 2017, will be applied against the outstanding balance of the bridge facility.

“Our strategy to optimize our portfolio by selling non-core assets and using the proceeds to pay down debt is firmly on track,” said Brian Ferguson, President & Chief Executive Officer. “We continue to target between $4 billion and $5 billion in announced asset sale agreements by the end of the year, and we remain committed to returning to our long-term debt ratio target.”

Cenovus 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).

The sale process for Cenovus’s Weyburn carbon-dioxide enhanced oil recovery operation in Saskatchewan is proceeding as expected. Cenovus anticipates reaching a sale agreement for the Weyburn asset in the fourth quarter of 2017. In addition, Cenovus has certain other non-core assets that are currently being evaluated for potential sale.

Credit Suisse and Scotiabank acted as financial advisors to Cenovus for the Palliser transaction.

Acquisitions and Divestitures News in Canada >>

Sweden >>  9/22/2020 - Inter Pipeline Ltd. announced that it has entered into a definitive agreement to divest a major portion of its European bulk liquid storage business t...
Australia >>  9/21/2020 - Comet Ridge Limited is excited to announce that the Company has been selected by the Queensland Government as preferred tenderer for two additional ga...

Brazil >>  9/21/2020 - Petrobras, in relation to the news published in the media, referring to the divestment of the Presidente Getúlio Vargas Refinery (Repar), clarifies th...
Norway >>  9/21/2020 - PGNiG Upstream Norway has signed an agreement with A/S Norske Shell to acquire interests in Kvitebjørn and Valemon, two producing fields in the North ...

South Africa >>  9/21/2020 - Africa Energy Corp. announces that a Special Meeting of Shareholders (the “Special Meeting”) will be held in Canada on Thursday, October 15, 2020 at 9...
United States >>  9/21/2020 - Nostra Terra, the oil & gas exploration and production company with a portfolio of development and production assets in Texas, USA, is pleased to anno...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Canada Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |

More News

Related Links

Gulf Oil and Gas
Copyright © 2020 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.