Cenovus Energy Inc. has announced another asset sale, as the Calgary-based firm continues to streamline its portfolio.
The natural gas firm said Friday it’s selling its Tucker thermal assets for $800 million to an unidentified buyer.
The site in question, located in northeastern Alberta, is projected to produce up to 21,000 barrels per day in 2022.
“This is yet another example of Cenovus seizing opportunities to generate incremental value for shareholders,” said Alex Pourbaix, president and chief executive officer at Cenovus, in a release.
“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.”
The news comes more than two weeks after Cenovus announced it had reached an agreement to sell its Husky gas stations to Parkland Corp. and Federated Co-operatives Limited for $420 million, among other assets.
All told, Cenovus said it expects to haul in $2 billion in total proceeds from asset sales announced in 2021.
This latest transaction is expected to close late January.
After a challenging several years for the oil and gas sector, elevated energy prices have been powering growth on the S&P TSX Composite index, with Cenovus shares climbing more than 90 per cent year-to-date.
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