Energies Media
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise
No Result
View All Result
Energies Media
No Result
View All Result

ConocoPhillips Sells Canadian Assets to Cenovus Energy Inc. for $13.3 Billion

by Tim McNally
April 7, 2017
in News, 2017-May-June, Upstream
56444922 m ronniechua
Baker Hughes

Falkirk Mine in North Dakota’s leasings ends with a bid of nearly $80,000

Blue Creek mine delivers first coal ahead of schedule

On March 29, Houston, Texas-based ConocoPhillips announced the sale of some of its Canadian assets to Cenovus Energy, an oil-production firm based in Calgary. The $13.3 billion sale price (C$17.7 billion) includes a 50 percent nonoperating stake in the Foster Creek Christina Lake oil sands partnership and gas assets in the western Canada Deep Basin.

Cenovus paid for the assets with $10.6 billion in cash and 208 million of the company’s shares (NYSE: CVE), which were valued at around $2.7 billion on March 28 when the stock price closed at $12.97. However, the stock price dropped considerably after the announcement of the sale, closing at $11.31 on March 31. In addition to the cash and shares, ConocoPhillips will be receiving contingent payments for five years, which will come into effect when the price of Western Canada Select crude oil surpasses $C52 per barrel.

“This is a significant, win-win opportunity for ConocoPhillips and Cenovus,” stated ConocoPhillips Chairman and CEO Ryan Lance in a release by the company. The company plans to use the funds from the sale to reduce their debt to $20 billion and increase the number of shares they will repurchase. The release from Conoco also notes that this sale will allow the firm to expedite a three-year plan they laid out in November of 2016.

“We laid out a bold and unique value proposition in late 2016 that was focused on free cash flow generation, a strong balance sheet, returning cash to shareholders, disciplined growth, and improved returns,” stated Lance. “Our stated plan was to accelerate our value proposition by reducing debt with asset sales. Clearly, this transaction significantly accelerates those efforts and provides an important catalyst that should allow investors to have clarity and confidence in our future direction.”

Cenovus’ acquisition of these assets enables it to continue developing and expanding its Canadian oil sands assets. “This transformational acquisition allows us to take full control of our best-in-class oil sands projects and to add a second growth platform across the prolific Deep Basin that provides complementary short-cycle development opportunities,” stated Brian Ferguson, President & CEO of Cenovus. “Going forward, we plan to focus capital spending on these two value platforms. At the same time, we intend to divest a significant portion of our legacy conventional assets to help fund the transaction.”

Author Profile
Tim McNally
Digital Content Manager
Author Articles
  • Tim McNally
    https://energiesmedia.com/author/tim-mcnally/
    Navigating Mineral Rights? Don’t Be Scared by the Complexity
    January 12, 2018
    Navigating Mineral Rights? Don’t Be Scared by the Complexity
  • Tim McNally
    https://energiesmedia.com/author/tim-mcnally/
    Giles Edward edited
    January 12, 2018
    Interview with Giles Edward, CEO, M-Flow
  • Tim McNally
    https://energiesmedia.com/author/tim-mcnally/
    Devon Energy Reports Year-To-Date Sales of Nearly $10 Billion
    November 10, 2017
    Devon Energy Reports Year-To-Date Sales of Nearly $10 Billion
  • Tim McNally
    https://energiesmedia.com/author/tim-mcnally/
    Interview with Dave McCarthy, Senior Director of Products at Bsquare
    November 3, 2017
    Interview with Dave McCarthy, Senior Director of Products at Bsquare
  • Tim McNally
    https://energiesmedia.com/author/tim-mcnally/
    Largest Oil and Gas Lease Sale Set to Take Place in New Orleans
    October 29, 2017
    Largest Oil and Gas Lease Sale Set to Take Place in New Orleans
  • Tim McNally
    https://energiesmedia.com/author/tim-mcnally/
    Lake Pontchartrain Explosion Brings Attention to Operations in the Region
    October 22, 2017
    Lake Pontchartrain Explosion Brings Attention to Operations in the Region
Tags: #OilmanNEWS
CCUS
TAMU

In This Issue

Energies Media Summer 2025

ENERGIES Media (Summer 2025)


Why Energy Companies Need a CX Revolution


Meeting Emergency Preparedness and Response Criteria


Letter from the Managing Editor (Summer 2025)


Energies Media Interactive Crossword Puzzle – Summer 2025


ENERGIES Cartoon (Summer 2025)


Bringing Safety Forward in Offshore Operations


Moving Energy Across Space and Time


U.S. Oil Refineries Face Critical Capacity Test Amid Rising Demand


How to Deploy Next-Gen Energy Savers Without Disrupting Operations


Maximizing Clean Energy Tax Credits Under the Inflation Reduction Act


Dewey Follett Bartlett, Jr.: Tulsa’s Champion of Independents


The Hidden Value in Waste Oil: A Sustainable Solution for the Future


NeverNude Coveralls: A Practical Solution for Everyday Dignity

E-Fuels
Expo
  • Terms
  • Privacy

© 2025 by Energies Media

No Result
View All Result
  • Magazine
    • Digital Magazine
    • Digital Magazine Archive
  • Features
  • Upstream
  • Midstream
  • Downstream
  • Renewable
    • Solar
    • Wind
    • Hydrogen
    • Nuclear
  • People
  • Events
  • Advertise

© 2025 by Energies Media