Cenovus Energy Inc CVE

Cenovus

[CandyC]

Is buying Gear

[Wortep]

So a GXE10%+ dividend yield  result Cenovus increase of approx 3 fold.  At the moment CVE is sitting around 3% divided yield.  $.16 miraculously becomes $.50 per quarter. 

[Quintessential1]

Maybe.  If they are they are only buying the Lloyd Minster assets and spinning out the rest to a newco All GXE shares will be paid out and no CVE shares will be issued and the GXE dividend is no more. How do you think you know this? GLTY and all

[ztransforms173]

- ASSUME 'SMART' GXE shareholder: - ALL GXE shareholders OPT for MAXIMUM CASH ALLOCATION as a GROUP CLASS result: - CVE pays MAXIMUM CASH allocated to GXE shareholders which is $ 80 million {the remaining $ 30 million will go to GXE CREDITORS + FEES + Newco WORKING CAPITAL} - assume GXE S/O is 263,600,000 shares CASH COMPONENT for EACH GXE share: 80,000,000 / 263,600,000 ~= 0.3035 $

[Quintessential1]

Good breakdown.  What is not happening and assumed by Wortep however is that the dividend transfers to CVE shareholders and is automatically increased.  GLTY and all

[downwithdotcom1]

1)logical...but who says?? 2)if true, its a great deal as there's a lot of anger being posted about the  terms of this deal on the GXE bullboard-someone has to win, someone has to lose... 3)the deal could be stopped but in my opinion it will more than likely         still go through as retail shareholders always get screwed...dwdc

[meritmat]

Dumb question but what could Gear have that Cve would want?

[ztransforms173]

  meritmat - (12/8/2024 2:43:01 PM)   RE:RE:Cenovus   Dumb question but what could Gear have that Cve would want? *** - LLYODMINSTER HEAVY crude oil - it is CLOSE BY and it is the RIGHT kind of crude oil - PRIME FEEDSTOCK for the CVE Refinery + Upgrader in the Llyodminster area {two DISTINCT facilities} z173   meritmat - (12/8

[meritmat]

ya I was thinking of that after. Was more hoping for 80 million in share buy backs, but lets see how this plays out

[mrbb]

`i'm pretty sure gear had drill up all their best land around Lloydminster.  I don't see cve wanting to add more cold heavy oil asset. they are short life and ROR is pretty slim.  Maybe gear has some thermal HO lands (paradise hill) that cve could develop which gear doesn't has the fund or expertise to do it themselves.

[ztransforms173]

- 2024 GXE Annual Information Form RESERVES section SAYS OTHERWISE - CVE does NOT NEED to MAKE MONEY on the GXE HEAVY OIL since they will NOT be SELLING IT - they will USE it to BLEND IT with the other OLD HUSKY ENERGY HEAVY OIL + LLYODMINSTER THERMALS to FEED into the refinery and upgrader  - BUYING & DEVELOPING Gear Energy LLYODMINSTER properties is CHEAPER than BUILDING

[Moemoney43]

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