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Cenovus to sell Husky retail fuels network and Wembley assets for $660 million

A view of a Cenovus oil sands operation
Cenovus is selling retail fuel outlets and conventional assets in a $660 million deal.

Cenovus is shifting its overall focus and offloading some assets that came with its acquisition of Husky, announcing the sale of its Husky retail fuels network along with the Wembley assets in its Conventional business for a total of $660 million.

The retail deal involves the sale of 337 gas stations to Parkland Corporation and Federated Co-operatives Ltd. for cash proceeds of $420 million. Cenovus will retain around 170 cardlock, bulk plant and travel centre locations to maintain a presence in the commercial fuel segment.

At the same time, Cenovus will sell assets from its Conventional segment, primarily in the Montney and Wembley, for $238 million. Production in 2021 has averaged approximately 3,200 barrels per day, with about 38 percent oil and natural gas liquids.

"This is another demonstration of Cenovus delivering on opportunities to continue to optimize our portfolio and unlock value from assets that will not attract significant investment in our business," said Alex Pourbaix, Cenovus's President & Chief Executive Officer. "With these latest transactions, we now expect to realize more than $1.1 billion of total proceeds from sales announced in 2021."

In November Cenovus announced the substantial achievement of its interim net debt target of $10 billion, the doubling of its quarterly dividend as of the fourth quarter of 2021 and the establishment of a normal course issuer bid program for the repurchase of up to 146.5 million of the company's common shares. Proceeds from these latest transactions will advance net debt repayment towards the company's longer-term target of $8 billion and enhance the company's capacity to increase shareholder returns.

Company info

500 Centre Street SE
P.O. Box 766
Calgary, AB
CA, T2P 0M5

Website:
cenovus.com

Phone number:
1-877-766-2066

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