View Original Article

Cenovus Energy: Credit Suisse says debt reduction pace above expectations

June 19, 2019 9:25 AM
Reuters

** Credit Suisse says Canadian integrated oil company Cenovus Energy Inc's debt reduction pace exceeding expectations

** On Tuesday, CVE announced it intends to repurchase $748 mln of its debt as a result of successful cash tender offers for certain of its outstanding notes

** Brokerage says the debt pay down amount of $748 mln is ~50% higher than the original tender offer of $500 mln

** "Increased pace of debt repayment is clear reflection of CVE's confidence in its own ability to generate surplus FCF which we view positively", CS analyst Manav Gupta wrote

** Further adds, CVE and Canadian Natural Resources would be the biggest beneficiaries of the Trans Mountain Expansion Project coming online, which Canada approved yesterday

** 13 of 23 brokerages rate the stock "buy" or higher, 10 "hold"; their median PT is C$15

** Stock up 24.3% YTD

(Reporting By Arundhati Sarkar in Bengaluru)
Sign up for the BOE Report Daily Digest E-mail Return to Home