Cenovus Energy Inc. (NYSE: CVE) announced a definitive agreement to acquire Athabasca Oil Corporation (TSX: ATH) for C$5.7 billion, paying C$12.00 per share in a mix of cash and stock.
The deal structure allocates 65 to 75 percent cash (capped at C$4.3 billion) and 25 to 35 percent Cenovus shares (capped at 44.4 million shares), depending on Athabasca shareholder elections and pro-ration. Cenovus will fund the cash portion through existing cash and short-term borrowings.
The acquisition adds approximately 45,000 barrels of oil equivalent per day to Cenovus production at 2026 exit levels, with over 75 years of proved plus probable reserves life at that rate. Cenovus targets 115,000 barrels per day by 2032 from the thermal assets.
Cenovus expects to realize approximately C$85 million in annual corporate and commercial synergies, with most materializing in the first full year after closing. The company reiterated its C$4 billion net debt target, unchanged by the deal.
Pro forma net debt at year-end 2026 is expected to range between C$5.0 billion and C$5.5 billion based on strip pricing. The transaction is expected to close in December 2026, subject to regulatory approvals and Athabasca shareholder vote.
