A way for Cenovus to attract capital is by returning capital to shareholders: Greg Newman
Cenovus Energy Inc. has reached agreements to sell gas stations it acquired as part of its takeover of Husky Energy Inc. and conventional assets in Alberta for a total of $658 million.
The company announced after the markets closed on Tuesday that it will sell 337 gas stations from its Husky retail fuel network to Parkland Corp. and Federated Co-operatives Limited for $420 million, while retaining the commercial fuels business. The deal is expected to close by mid-2022.
Cenovus also said it will sell assets primarily in the Montney formation in a $238-million transaction that’s expected to be completed in December. The buyer was not identified.
Total production from the Montney assets has averaged 3,200 barrels of oil equivalent per day this year.
Cenovus President and Chief Executive Officer Alex Pourbaix said in a press release that the asset sales will help the company streamline its portfolio, fast track debt reduction and “support increasing shareholder returns.”
The company expects to net more than $1.1 billion in total from asset sales so far this year.
Cenovus closed its $3.8-billion takeover of Husky Energy in early January.