Proceeds will further accelerate net debt reduction and support increasing shareholder returns
CALGARY, Alberta – Cenovus Energy Inc. (TSX: CVE) (NYSE: CVE) has reached an agreement to sell its Tucker thermal asset for total cash proceeds of $800 million. Proceeds from this transaction will further accelerate the company’s reduction of net debt and enhance its capacity to increase shareholder returns. Including this transaction, the company expects to realize almost $2 billion of total proceeds from asset sales announced in 2021.
“This is yet another example of Cenovus seizing opportunities to generate incremental value for shareholders,” said Alex Pourbaix, Cenovus’s President & Chief Executive Officer. “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.”
Located in northeastern Alberta, Tucker’s expected 2022 average production is between 18,000 barrels per day and 21,000 barrels per day. The transaction is expected to close in late January, subject to customary closing conditions.
Cenovus’s corporate guidance dated December 7, 2021 does not reflect this asset sale. The company plans to update guidance with its fourth quarter results in February 2022.