Cenovus Energy to acquire Athabasca Oil in C$5.7 billion deal

Cenovus Energy Inc. has entered into a definitive agreement to acquire Athabasca Oil Corporation in a cash and stock transaction valued at an implied enterprise value of approximately C$5.7 billion. The deal is expected to add roughly 45,000 barrels of oil equivalent per day to Cenovus’s operations, expanding its footprint in the Canadian oil sands.

The acquisition includes high-quality assets such as Leismer and Corner, which possess over 75 years of proved and probable reserves life. Cenovus intends to apply its steam-assisted gravity drainage (SAGD) expertise to these assets to enhance reservoir performance and accelerate thermal production. Additionally, the transaction consolidates ownership of Duvernay Energy Corporation.

Cenovus expects to realize approximately $85 million in annual corporate and commercial synergies, most of which should be captured within the first full year following the close of the deal. The transaction remains subject to customary shareholder, court, and regulatory approvals.