Cenovus Energy Agrees To Sell Tucker Asset For $800 Million

Cenovus Energy (TSX: CVE) is adding another asset sale to its books before the year ends. The energy firm announced on Thursday an agreement to sell its Tucker thermal asset for total cash proceeds of $800.0 million.

The move comes just days after the company announced the sale of its Husky retail network to retailers Parkland Corporation (TSX: PKI) and Federated Co-operatives Limited for $420 million and the sale of its Wembley assets for $238 million.

The Tucker asset is an oil sands project located in northeastern Alberta, with expected 2022 average production of 18,000 – 21,000 barrels per day. The details on the purchaser are yet to be disclosed.

Proceeds from the sale are expected to be used in further reducing the firm’s net debt and increase shareholder returns. The sale of Husky and Wembley assets were expected to bring the net debt closer to the goal of $8.0 billion.

“With Tucker and the other divestitures announced this year, we have delivered on our asset sales commitment for 2021, positioning the company well to focus on higher-return opportunities in the portfolio and continue increasing returns to shareholders,” said CEO Alex Pourbaix.

Including the Tucker asset sale, the total proceeds from all asset sales during 2021 are expected to reach almost $2 billion.

The transaction is expected to close in January 2022, subject to customary closing conditions.

Cenovus Energy last traded at $15.06 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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