Bullboard - Stock Discussion Forum Cenovus Energy Inc T.CVE

Alternate Symbol(s): CVE.WS | CVE | CNVEF | T.CVE.P.A | T.CVE.P.B | T.CVE.P.C | T.CVE.P.E | T.CVE.P.G | T.CVE.W

Energy Oil & Gas Integrated

Cenovus Energy Inc. is a Canada-based integrated energy company. The Company has oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The Company's segments include Upstream, Downstream, and Corporate and Eliminations. Its Upstream segment includes Oil Sands, Conventional, and Offshore.... see more

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TSX:CVE - Post Discussion

Cenovus Energy Inc > Athabasca Oil Creation of “Duvernay Energy Corporation”

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Post by Betteryear2 on Dec 19, 2023 5:23pm

Athabasca Oil Creation of “Duvernay Energy Corporation”

Athabasca and Cenovus combine Kaybob assets to create pure-play Duvernay entity
Exposure to ~200,000 gross acres including a newly operated 100% WI position of ~46,000 acres
Leverages significant prior de-risking activity to date on Athabasca’s Duvernay assets
Debt-free entity seeded with $40 million cash and a $50 million credit facility
Production of ~2,000 boe/d with a self-funded development plan to ~25,000 boe/d (~75% Liquids)
Athabasca Thermal Oil budget & Return of Capital commitment of 100% Free Cash Flow remain intact
Athabasca and Duvernay Energy will be positioned as two separate companies with independent capital allocation frameworks

CALGARY, Alberta, Dec. 19, 2023 (GLOBE NEWSWIRE) -- Athabasca Oil Corporation (TSX: ATH) (“Athabasca” or “the Company”) is pleased to announce it has entered into transaction agreements (“Transaction”) to create Duvernay Energy Corporation (“Duvernay Energy”) with Cenovus Energy Inc. (“Cenovus”). Duvernay Energy will be a standalone self-funded entity that will drive strong, high netback cash flow and production growth and is expected to unlock significant value. The transaction is aligned with Athabasca’s strategy to maximize cash flow per share growth and return capital to shareholders.

Athabasca Oil Announces Creation of “Duvernay Energy (globenewswire.com)

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Comment by ztransforms173 on Dec 19, 2023 10:07pm

- it is a GREAT IDEA but Cenovus Energy has a NASTY HABIT of SELLING OUT TOO EARLY and TOO CHEAP - Exhibit A: * HEADWATER EXPLORATION INC. (HWX-T) - CVE does NOT DO small-scale E&P VERY WELL {like Duvernay Energy} so they like to OFFLOAD these things and CONCENTRATE on SAGD, OFFSHORE E&P, DEEP BASIN natural gas and RUNNING REFINERIES, ETHANOL PLANTS and UPGRADERS z173

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Comment by ztransforms173 on Dec 19, 2023 10:27pm

- $ 18 million CAPITAL INJECTION from CVE in the Duvernay Energy JV (with a 30% interest and ONE (1) out of the FOUR (4) board members} is SMALL POTATOES for Cenovus - for CVE, this MAKEA A LOT of SENSE as they will get OPERATING SCALE in the JV that they could NOT get on a STANDALONE BASIS * for example, latest well designs of LATERAL LENGTHS of 4,500 METERS long - hopefully, they WON'T ...more

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