Canada's Cenovus Energy Inc. (NYSE: CVE) has reached a deal to sell its Weyburn oil facility for C$940 million (US$738.53 million), the company said Nov. 13, completing its main divestiture plans.
Weyburn, to be sold to the western Canadian energy company Whitecap Resources Inc., is the last of four main assets for which Cenovus has reached agreements to sell to pay down debt incurred in the C$16.8 billion acquisition of ConocoPhillips Co. (NYSE: COP) assets this year.
The sale of Cenovus's majority interest in Weyburn would bring its asset sale proceeds to just under C$4 billion, compared with its target of C$4 billion to C$5 billion in asset sales.
Reuters last week reported Whitecap was a frontrunner in bidding for the asset.
Whitecap said in a statement it has agreed to buy a 62.1% operated working interest in Weyburn, which produces 14,600 barrels of oil equivalent per day, and other minor assets in the Saskatchewan province.
Cenvous said in a statement the sales of Weyburn and other assets would help it retire a C$3.6 billion bridge loan it took for the ConocoPhillips deal, a move that is expected to please investors who balked at how the deal was financed.
The acquisition eventually led to Cenovus's naming Alex Pourbaix, a former executive at TransCanada Corp. (NYSE: TRP), as its CEO, replacing Brian Ferguson, who led the deal.
Cenovus has said it may also sell part of the Deep Basin gas assets it acquired from ConocoPhillips. The company has been talking to potential buyers, sources have said. (US$1 = C$1.2728)
Recommended Reading
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.
JMR Services, A-Plus P&A to Merge Companies
2024-03-05 - The combined organization will operate under JMR Services and aims to become the largest pure-play plug and abandonment company in the nation.
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.