Cenovus to Acquire Athabasca Oil in C$5.7 Billion Deal

Cenovus Energy agreed to buy Athabasca Oil in a cash-and-stock deal valued at C$5.7 billion in implied enterprise value, about US$4 billion. Each Athabasca share can convert to C$12.00 cash, 0.264 Cenovus shares, or a mix. Reuters said the C$12 implied price sits about 13.4% above Athabasca's Friday close. Consideration will run 65% to 75% cash and 25% to 35% stock, with cash capped at C$4.3 billion. The acquisition adds about 45,000 barrels of oil equivalent per day. Cenovus said Athabasca's Leismer and Corner assets carry more than 75 years of proved and probable reserve life and could help raise thermal production to 115,000 barrels per day by 2032. The deal also gives Cenovus full ownership of Duvernay Energy, with potential to grow that output to 20,000 barrels of oil equivalent per day. Both boards approved the transaction. Closing is expected in December 2026. Cenovus shares traded down 0.49% to $32.27 in NYSE pre-market action.