Cenovus Energy Inc CVE

Irving Oil purchasing Cenovus Oil

[Wortep]

Now that we have a chair on the Irving Oil Board and the TMX sourcing new customers such as Irving  Would a buy out of Irving be in the future?https://www.cenovus.com/News-and-Stories/Our-stories/Cenovus-ships-oil-to-Irving-Oils-East-Coast-refinery-via-West-Coast-pipeline

[Quintessential1]

Just the refinery or the whole business?    Hard to justify a bid or a pass without a look at the books either way.  That chair on the board could be helpful. The refinery and east coast port could be jewels in the rough for a company looking to become a global leader.   The 2020 article about shipping from BC to NB was interesting and it is a way but there has to be a

[cashtango00]

Make no mistake.  If CVE bought heavy into Irving, CVE's stock would take a massive beating.  It would yet again go against CVE's guidance of what their direction is and how they plan to deploy capital and distribute cashflow.  There is already a " trust" issue in the market against CVE.  I don't see it happening and if it did, I will be running to the

[Quintessential1]

Those are definately concerns for investors.  I know everyone has been waiting for the targeted debt level to be reached and for 100% FCF payouts to begin including me. I am curious about one thing though; for how long?  When do the returns to shareholders become enough and management is required to turn their focus back to growth?   Is it even too soon to even ask given that

[cashtango00]

CVE has a modest upstream growth built into their model.  The narrative in the industry is to just run these long life assets and throw off cashflow.  Lets face it, the heavy oil industry cannot sustain a high growth rate given there is a slow structural change happening. As for their record, they are an excellent upstream operator, particularily in their organic growth.  The Husky

[Quintessential1]

I agree they seem like excellent operators.  Actually better than most which makes the acquisition seem all the better.   Just spit balling numbers and ideas.  Speaking of which I think I may have trump sized the gain since the acquisition at 2.5 times in 3 years it becomes 150% or 50% per year.  One I use for the banks the other for the government when I pay taxes

[ztransforms173]

- the 50% NON-OWNED WRB refinery joint venture are the KEY ASSETS that CVE NEEDS to ACQUIRE on a PRIORITY BASIS * WOOD RIVER Refinery is a JEWEL in the CROWN matching CVE BOP production with WR FEEDSTOCK CONNECTED DIRECTLY by PIPELINES - IRVINE OIL Refinery is a LARGE VALUABLE DOWNSTREAM ASSET {including SUBSTANTIAL retail FOOTPRINT + SOLE refinery in IRELAND} with a PREVILIGED ACCESS to the

[Quintessential1]

This is a very good point.  For all the perceived rush to buy limited assets that probably won't get green lighted to be built again, there doesn't seem to be a shortage of them on the market.  I can however see your point of WRB being more valuable given the pipeline connections and heavy oil capacity.  I wonder if the Irving assets could be used for feign disinterest in

[autofocus111]

Nfld offshore production run rate is ~300mbbl/d. Mainly Hibernia and Hebron but smaller contributions from TerraNova and WR/WWR. Ownership of the production largely by XOM, SU, and CVE. Interestingly, that roughly matches the Irving refinery capacity. Would XOM want to buy Irving? Or maybe a JV buyout by the three... say 75%/25%/25% with XOM as operator? https://www.gov.nl.ca/fin/economics/eb-oil

[autofocus111]

Correction... NL offshore production is ~200mbbl/d. I wonder how much of this goes to the Irving refinery. 

[Wortep]

The writing was on the wall months ago.